Small Business Market Gets More Attention

Small businesses, defined by Microsoft as companies with fewer than 50 employees, have largely eluded Microsoft’s efforts to sell them software more advanced than OEM versions of Windows and Office. While many have PCs, far fewer have networks, servers, and server applications. Through research into how small businesses think about technology, Microsoft has begun to understand what makes them different, and is planning new marketing, branding, and partner efforts to better tap this large market. While success would be sweet, parts of the strategy are largely untried and rely on partners that have little experience selling technology.

The Small Business Market

Worldwide, the small business technology market comprises more than 40 million small businesses that own at least one PC. These businesses spent about US$280 billion on technology in 2003. Growth appears to be healthy: according to market research firm AMI, small business technology spending grew 11% in 2003, and Microsoft estimates it will hit US$400 billion worldwide in 2006.