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Voice of ITDecember 2012TMSMB IT Spending: How IT Pros 162kare Creating and Managing2013 152k 151k* 143kBudgets 132k 122kApproximately how much does your company plan to spend this year (in USD) on IThardware, software (licenses/purchases) and services (online services such as hosting,email, telecom, bandwidth, etc.)?Budgets among SMBs have been on the rise for the past few years, and in our recent 2H 2012 State of SMB ITreport we found that they’ve reached their highest point during that time. Over the last year, budgets grew13% 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 theirIT budget and where they plan to put their dollars in 2013. Results show that as investment in IT continues togrow, IT pros will most likely spend as follows: 2H 2010close to 50% of1Haverage2011 budget on new2H 2011projects1H 2012InvestRegardhardware andsoftware as a top priority for 2013 spendWorldwideEMEAContinue to invest more in cloud-based services and mobile2H 2012This 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 IThardware, software (licenses/purchases) and services (online services such as hosting,email, telecom, bandwidth, etc.)? 162k 152k 151k† 143k 132k 122k2H 2010Worldwide1H 20112H 20111H 2012EMEA* Source: Spiceworks State of SMB IT 2H 2012† 2H 2012 was the first time EMEA data was reported separetely from worldwide.2H 2012

SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013Where 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 bespending slightly more than half of their budget on the projects they were working on in 2012, and thenusing the remaining dollars for new projects.Average Percent of Budget Toward New vs. Exisiting ProjectsWhat percent of your annual budget is going toward the following types of ondents: Worldwide (756) - EMEA (165)For both worldwide and EMEA IT pros, the top three focuses for the IT budget are hardware and softwarewith laptop/desktop, servers, and software being the top focus areas for over 40% of IT pros. Virtualizationand networking are not far behind and mentioned by approximately a third of respondents as a top3 focus for their budgets. Despite all the buzz, cloud-based services and mobile received the fewestmentions as a top 3 focus area for 2013.Top 3 Focus Areas for IT BudgetWhat are the top 3 focuses for your budget next year?50%45%48%44% 43%41% 41%40%37%34% 33%30%30%28%24%20%20%19% 18%17%15%16%10%6%4%0%ydycifr, pehe e sOt leaspritileobMcusebad- sou ceCl Se/op ppt toLa e s kDWorldwideEMEARespondents: Worldwide (927) - EMEA (198)2

2012 20132012 20132012 2013Virtualization2012 20132012 2013Cloud-Based Services2012 2013MobileSMB IT SPENDING:HOW ITPROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013WorldwideEMEAWhat percent of your overall budget will be spent on the following categories?An Uptickin TechTHIS23% Spend.YEARNEXTthoughYEARTHISYEAR12% 14%NEXTmobileYEARTHISYEAR15% 16%theNEXTlistYEAREvendata24%showsare notof 201316%rising18%to the top of18% spend19% priorities,25%that cloud andwe believe that they are growth areas due to the disruption in mobile (with BYOD and tablets) and theVirtualizationgrowing confidencein cloud-based services. Cloud-BasedTherefore,Servicesto find out how these shiftsMobileare impacting the ITbudget edicatedtothesetechnologies inWorldwideEMEA2012 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 4thTHIS YEAR23%23%12%14%15%16%among worldwide top focus areas in 2013 and 5th among EMEA, the actual amount of budget dedicatedNEXT YEAR24%25%16%18%18%19%to this technology will stay steady—receiving an average of close to a quarter of 2013 budget spend.VirtualizationCloud-Based ServicesMobileEMEAAverage WorldwidePercent of BudgetSpend in 2012 vs. 2013What percent of your overall budget will be spent on the following %12%THISYEAR15%16%Cloud-Based ServicesEMEAMobileRespondents: Worldwide (686-742) - EMEA (140-153)Tech Marketer?See what IT pros are saying about youwith the Spiceworks DashboardSign up FREE atwww.spiceworks.com/marketing/dashboard3

SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 2013Calling the Budget Shots.Now that we know where the dollars are going, let’s take a look at how SMB IT pros create and managetheir budgets. Over half of the respondents in this survey are the point person at their company formaking recommendations on how the budget is spent (54%) and/or spending the budget (58%). Roughlya third are responsible for creating (31%) and managing (39%) the tech spend. In EMEA specifically, IT prosare more likely to be involved in managing the budget (45%) and spending the budget (62%) than IT prosworldwide.Level of Responsibility for IT BudgetsWhat is your role when it comes to developingand managing the IT budget for your company?58%I spend the budget62%54%55%I make recommendations onhow we spend our budget46%46%I provide input indeveloping the budget39%I manage the budget45%31%32%I create the budget10%10%I am not involved with budgetor spending for our ents: Worldwide (942) - EMEA (200)It is interesting to note that not all tech dollars are being spent in the IT departments. Forty-seven percentof respondents state that other departments are using their own budgets to purchase IT technologies ordevices. This is similar for EMEA respondents with half stating that IT spending happens outside of theirdepartment.IT Spending in Other Departments7%7%46%47%43%Yes50%NoDon’t knowWorldwideEMEA“FROM THE COMMUNITYWe have departments goingout and spending thousands ofdollars to develop mobile appswithout approval from IT andkeeping the devices away fromIT’s hands.“Does any of the spending on IT technologies or devicesfor your company happen outside of the IT department?J BarnettSharepoint Designercommunity.spiceworks.comRespondents: Worldwide (926) - EMEA (198)4

SMB IT SPENDING: HOW IT PROS ARE ALLOCATING AND MANAGING BUDGETS IN 20134%5%When to plan?10%6%27%31%26%28%There is not a whole lot of lead time in developing the IT budget for SMBs. Over half (53%) of respondentsAt least 1 year6-12 months3-6 months1-3 months2013in advanceonly 6 months inadvancein advanceadvancestart planningoutfrom when it is timeto start spending. inAnda quarter of respondentsworldwide do not have any formal budget planning.25%9%Don’t knowWetodoplannot doanyEMEA IT pros are only slightly more likelybudgetsat least 6 months in advance (59% vs. 53% offormal budget planningDon’t know22%9%worldwide IT pros).WorldwideEMEAIT Budget PlanningWhen does your company start planning for next year’s budget?6-12 monthsin advance10%6%3-6 months31%in advance27%20131-3 monthsin advanceAt least 1 year26%28%in advance4%5%WorldwideEMEA25%9%22%9%We do not do any formal budget planningDon’t knowWorldwideEMEAWe do not do any formal budget planningDon’t knowRespondents: Worldwide (939) - EMEA (197)5

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 201314%17%23%27%YesOutside Factors Impacting IT Spend.NoDon’t know63%56%While IT pros do their best to develop a budget to meet their company’s needs, a variety of corporatepolicies or practicesgo about managing and spending their budget throughout theWorldwide can impact how theyEMEAyear. Two specific areas we asked about were the likelihood of getting additional budget during the yearand 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 withDoescompany have“use ittheyor losepolicyfor yourdepartment’sbudget?nearlyhalf yourof respondents(45%)astatingare it”likelyto receiveadditionalbudgetannualthroughoutthe yearworldwideand42%inEMEA.Worldwide63% of Receiving Additional Budget During YearLikelihood23%14%EMEAHow likely is it that your department will receive additional budget throughout the year?56%27%11%Yes9%17%Very likely13%NoDon’t know32%19%45%Likely to receiveadditional budget12%10% 11%31%21%42%Likely to receiveadditional budgetSomewhat likelyNeitherNot very likelyDoes your company have a “use it or lose it” policy for your department’s annual budget?17%16%Not at all likelyWorldwideWorldwide23%Don’t knowEMEA63%14%Respondents: Worldwide (938) - EMEA (200)EMEA27% of respondents have56%a “use it or lose it” policy and need to make sure all dollars17% are unloaded byOnly 23%year end. EMEA shows similar results with 27% having a “use it or lose it” policy.YesNoDon’t know“Use it or Lose it” Budget PolicyWorldwide23%63%14%EMEA27%Yes56%No17%“FROM THE COMMUNITYI’ve found that the budgetprocess is an ongoing processnot a once a year event.“Does your company have a “use it or lose it” policyfor your department’s annual budget?BirdraIT Managercommunity.spiceworks.comDon’t knowRespondents: Worldwide (937) - EMEA (196)6