In 2013, SMB IT pros plan to allocate an average budget of $162,000 with a 13% increase in IT spending from the previous year, focusing primarily on hardware, software, and virtualization. While cloud-based services and mobile technologies are recognized growth areas, they receive less emphasis in budget allocations, suggesting they will constitute about one-fifth of spending. The survey indicates a lack of formal budget planning among many SMBs, with around half of IT professionals not starting their budget planning until 6 months in advance.

1. Voice of IT December 2012
TM
SMB IT Spending: How IT Pros
Approximately how much does your company plan to spend this year (in USD) on IT
hardware, software (licenses/purchases) and services (online services such as hosting,
email, telecom, bandwidth, etc.)?
are Creating and Managing 2013
$152k
$162k
$151k*
$122k
Budgets
$132k
$143k
Budgets among SMBs have been on the rise for the past few years, and in our recent 2H 2012 State of SMB IT
report we found that they’ve reached their highest point during that time. Over the last year, budgets grew
13% worldwide and reached an average of $162,000 with EMEA clocking in at $151,000 on average.
To dig a little deeper, we spoke to over 900 IT pros to find out how they go about creating and managing their
IT budget and where they plan to put their dollars in 2013. Results show that as investment in IT continues to
grow, IT pros will most likely spend as follows:
• Invest close to 50% of1H 2011 budget on new projects
2H 2010 average 2H 2011 1H 2012 2H 2012
• Regard hardware and software as a top priority for 2013 spend
Worldwide EMEA
• Continue to invest more in cloud-based services and mobile
This report highlights both worldwide findings as well as a breakout for Europe, Middle East and Africa (EMEA).
Planned Budgets Over Time*
Approximately how much does your company plan to spend this year (in USD) on IT
hardware, software (licenses/purchases) and services (online services such as hosting,
email, telecom, bandwidth, etc.)?
$162k
$152k $151k†
$143k
$132k
$122k
2H 2010 1H 2011 2H 2011 1H 2012 2H 2012
Worldwide EMEA
* Source: Spiceworks State of SMB IT 2H 2012
† 2H 2012 was the first time EMEA data was reported separetely from worldwide.

2. SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013
Where the 2013 Dollars are Headed.
Let’s start by uncovering where IT pros plan to focus their spend in 2013. In the coming year, IT pros will be
spending slightly more than half of their budget on the projects they were working on in 2012, and then
using the remaining dollars for new projects.
Average Percent of Budget Toward New vs. Exisiting Projects
What percent of your annual budget is going toward the following types of projects?
Worldwide
48% 52%
EMEA
45% 55%
New Exisiting Respondents: Worldwide (756) - EMEA (165)
For both worldwide and EMEA IT pros, the top three focuses for the IT budget are hardware and software
with laptop/desktop, servers, and software being the top focus areas for over 40% of IT pros. Virtualization
and networking are not far behind and mentioned by approximately a third of respondents as a top
3 focus for their budgets. Despite all the buzz, cloud-based services and mobile received the fewest
mentions as a top 3 focus area for 2013.
Top 3 Focus Areas for IT Budget
What are the top 3 focuses for your budget next year?
50% 48%
45% 44% 43%
41% 41%
40% 37%
34% 33%
30%
30% 28%
24%
20%
20% 19% 18%
17% 16%
15%
10%
6%
4%
0%
La e s k
Se
So
Vi
Ne
St
Se
Cl rvi
M
Ot leas
rtu
ob
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or
pt to
rv
cu
he e s
ftw
tw
D
se
p
ag
er
op p
d- s
ile
rit
a
r, pe
or
ar
liz
e
ba
y
/
ki
e
at
ng
se
io
d
n
cif
y
Worldwide EMEA
Respondents: Worldwide (927) - EMEA (198)
2

3. 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013
Virtualization Cloud-Based Services Mobile
SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013
Worldwide EMEA
What percent of your overall budget will be spent on the following categories?
An Uptick in Tech Spend.
THIS
YEAR 23% THIS
YEAR 12% 14% THIS
YEAR 15% 16%
Even though
NEXT
YEAR
data shows that cloud and
24% 25% mobile
are not rising to the top of
NEXT
16% 18%
YEAR 18% 19% the list
of 2013 spend priorities,
NEXT
YEAR
we believe that they are growth areas due to the disruption in mobile (with BYOD and tablets) and the
growing confidence in cloud-based services. Cloud-Based Services out how these shiftsMobile
Virtualization
Therefore, to find are impacting the IT
budget over time, we asked respondents the percent of budget they dedicated to these technologies in
Worldwide EMEA
2012 and what they plan to dedicate in 2013. The findings show that for cloud-based services and mobile,
both are on the uptick and will grow to approximately one-fifth of 2013 worldwide IT spend.
What percent of your overall budget will be spent on the following categories?
Another technology that’s gained strong traction among SMBs is virtualization. While this ranks 4th
THIS YEAR 23% 23% 12% 14% 15% 16%
among worldwide top focus areas in 2013 and 5th among EMEA, the actual amount of budget dedicated
NEXT YEAR 24% 25% 16% 18% 18% 19%
to this technology will stay steady—receiving an average of close to a quarter of 2013 budget spend.
Virtualization Cloud-Based Services Mobile
Average Worldwide of Budget Spend in 2012 vs. 2013
Percent EMEA
What percent of your overall budget will be spent on the following categories?
24% 25% 19%
NEXT
18% NEXT 18%
YEAR NEXT 16% YEAR
YEAR
THIS
YEAR 23% 23% THIS
YEAR 14% 12% THIS
YEAR 15% 16%
Virtualization Cloud-Based Services Mobile
Worldwide EMEA Respondents: Worldwide (686-742) - EMEA (140-153)
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4. SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013
Calling the Budget Shots.
Now that we know where the dollars are going, let’s take a look at how SMB IT pros create and manage
their budgets. Over half of the respondents in this survey are the point person at their company for
making recommendations on how the budget is spent (54%) and/or spending the budget (58%). Roughly
a third are responsible for creating (31%) and managing (39%) the tech spend. In EMEA specifically, IT pros
are more likely to be involved in managing the budget (45%) and spending the budget (62%) than IT pros
worldwide.
Level of Responsibility for IT Budgets
What is your role when it comes to developing
and managing the IT budget for your company?
I spend the budget
58%
62%
I make recommendations on 54%
how we spend our budget 55%
I provide input in 46%
developing the budget
46%
I manage the budget 39%
45%
I create the budget 31%
32%
I am not involved with budget 10%
or spending for our department
10%
0% 10% 20% 30% 40% 50% 60%
Worldwide EMEA Respondents: Worldwide (942) - EMEA (200)
It is interesting to note that not all tech dollars are being spent in the IT departments. Forty-seven percent
of respondents state that other departments are using their own budgets to purchase IT technologies or
devices. This is similar for EMEA respondents with half stating that IT spending happens outside of their
department.
IT Spending in Other Departments
“
Does any of the spending on IT technologies or devices FROM THE COMMUNITY
for your company happen outside of the IT department?
We have departments going
out and spending thousands of
7% 7% “
Yes dollars to develop mobile apps
without approval from IT and
46% 47% 43% 50% No keeping the devices away from
IT’s hands.
Don’t know
J Barnett
Sharepoint Designer
Worldwide EMEA community.spiceworks.com
Respondents: Worldwide (926) - EMEA (198)
4

5. SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013
4% 10% 27% 26%
5% 6% 31% 28%
When to plan?
There is not a whole lot of lead time in developing the IT budget for SMBs. Over half (53%) of respondents
At least 1 year 6-12 months 3-6 months 1-3 months 2013
start planning only 6 months in advance when it is time to start spending. in advance
in advance out from in advance And a quarter of respondents
worldwide do not have any formal budget planning.
25% 9% Don’t know
EMEA IT pros are only slightly more likely to plan do any at least 6 months in advance (59% vs. 53% of
We do not budgets
formal budget planning
22%
worldwide IT pros). 9% Don’t know
Worldwide EMEA
IT Budget Planning
When does your company start planning for next year’s budget?
6-12 months
in advance
3-6 months
10%
in advance 6%
27%
31% 2013
1-3 months
in advance
26%
28%
At least 1 year
in advance
4%
5%
Worldwide EMEA
25% We do not do any formal budget planning 22% We do not do any formal budget planning
9% Don’t know 9% Don’t know
Worldwide EMEA Respondents: Worldwide (939) - EMEA (197)
5

6. Does your company have a “use it or lose it” policy for your department’s annual budget?
SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013
14% 23% 17%
27% Yes
No
Outside Factors Impacting IT Spend.
Don’t know
63% 56%
While IT pros do their best to develop a budget to meet their company’s needs, a variety of corporate
policies or practices can impact how they go about managing and spending their budget throughout the
Worldwide EMEA
year. Two specific areas we asked about were the likelihood of getting additional budget during the year
and whether or not their company supports a “use it or lose it” policy.
The results show a good amount of IT departments anticipate receiving extra funds headed their way with
nearly half your company have a “use itthey are it” policy for your department’s annual budget? year
Does of respondents (45%) stating or lose likely to receive additional budget throughout the
worldwide and 42% in EMEA.
Worldwide
63%
Likelihood of Receiving Additional Budget During Year 23% 14%
EMEA
How likely is it that your department will receive additional budget throughout the year?
56% 27% 17%
Very likely
11%
Yes
13%No Don’t know
10% 11% Somewhat likely
9%
45% 42%
12%
Neither
32% 31%
19% Likely to receive 21% Likely to receive Not very likely
additional budget additional budget
Does your company have a “use it or lose it” policy for your department’s annual budget?
17% 16% Not at all likely
Worldwide
Don’t know
Worldwide EMEA
23% 63% 14%
Respondents: Worldwide (938) - EMEA (200)
EMEA
27% 56% 17%
Only 23% of respondents have a “use it or lose it” policy and need to make sure all dollars are unloaded by
year end. EMEA shows similar results with 27% having a “use it or lose it” policy.
Yes No Don’t know
“Use it or Lose it” Budget Policy
“
Does your company have a “use it or lose it” policy FROM THE COMMUNITY
for your department’s annual budget?
I’ve found that the budget
Worldwide
process is an ongoing process
23%
EMEA
63% 14% not a once a year event.
Birdra
IT Manager
“
community.spiceworks.com
27% 56% 17%
Yes No Don’t know
Respondents: Worldwide (937) - EMEA (196)
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7. SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013
Survey Methodology
The results in this report are from a recent Voice of IT® survey conducted with 942 SMB IT pros worldwide
from companies with less than 1000 employees. Nearly two-thirds of respondents are from North America
and close to a quarter are from EMEA. By company size, over half (54%) are from companies with less than
100 employees.
Company Size Region
Latin
America
250+ Asia
employees Pacific 4%
17% 1-19 employees 11%
North
19% EMEA America
29% 23% 48% 63%
100-249
employees
35%
20-99 employees
About Spiceworks Voice of IT®
The Spiceworks Voice of IT® market Insights program publishes stats, trends and opinions collected from small
and medium business technology professionals that are among the more than 2M users of Spiceworks. Survey
panelists opt-in to answer questions on technology trends important to them.
About Spiceworks
Spiceworks™ the world’s largest social business platform for IT, connects 2 million IT professionals with more
,
than 1,200 technology brands. By combining a Facebook-like community with free IT management software,
Spiceworks helps businesses to discover, buy and manage $350 billion worth of technology products and
services each year.
To learn more, visit: Be first to hear about Spiceworks Voice of IT® insights, email:
http://www.spiceworks.com/voice-of-it marketresearch@spiceworks.com
The contents in this report are a result of primary research performed by Spiceworks. Unless otherwise noted, the entire contents
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This report contains information of fact relating to parties other than Spiceworks. Although the information have been obtained from, and
are based on sources that Spiceworks believes to be reliable, Spiceworks does not guarantee the accuracy, and any such information might
be incomplete or condensed. Any estimates included in this report constitute Spiceworks’ judgment as of the date of compilation, and are
subject to change without notice. This report is for information purposes only. All responsibility for any interpretations or actions based on
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All rights reserved. 2012.
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