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SMBs covet tablets, Apple iPads most of all (research)

By | December 29, 2011, 8:12am PST

Summary: More than half of small businesses plan to increase or maintain their spending on tablet computers this year, according to NPD Group’s latest SMB Technology Monitor.

Small businesses are prepared to spend big on tablet computers in 2012 and the Apple iPad product line will be chief among the devices they consider. That’s according to the latest SMB Technology Monitor from research firm NPD Group, based in Port Washington, N.Y.

Just shy of three-quarters of all small and midsize businesses (SMBs) with fewer than 1,000 employees plan to buy tablet computers during the next 12 months, according to the latest edition of NPD’s poll. That was up about five percentage points from the second-quarter version of this same study. The top purchasing preference in the category was the Apple iPad, NPD reported.

The average IT budget allocation for tablets among the surveyed SMBs was $21,000.

There was a marked difference in the spending plans for the really small businesses and the midsize businesses in the survey pool.

During 2012, about 54 percent of the companies with fewer than 50 employees indicated that they would buy tablets; about 89 percent of that group said they would increase or maintain spending for tablet computing technology. Their average budget allocation is far less: just $2,000 during the next 12 months. What’s more, small businesses were less likely to gravitate toward the iPad than the larger ones, which means there definitely is opportunity for other vendors to make their mark in this customer segment.

I think it is worth noting that the NPD study was fielded in September 2011, before the release of Amazon.com’s Kindle Fire. That platform has gotten plenty of attention as a worthy competitor to the iPad; just two weeks ago, VMware even released its View client virtualization software for the platform (which runs Android).

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Heather Clancy is an award-winning business journalist with a passion for green technology and corporate sustainability issues.

Disclosure

Heather Clancy

Writing publicly about what the high-tech industry is actually doing to help itself and the world get greener or more sustainable is one way I figure I can contribute more meaningfully to said effort. I am also a big OMG-kind-of-fan of smart leadership, which is why the goodly folks who publish this blog let me go on about this topic and why I am always on the hunt for forward-looking business management ideas.

My daily writing is focused on looking for topics for my blogs, GreenTech Pastures and Business Brains. I also write often about emerging technology trends such as mobile computing, unified communications and cloud computing. Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where a speaking engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and the topics that I'm covering in my blog.

Biography

Heather Clancy

Heather Clancy is an award-winning business journalist with a passion for green technology and corporate sustainability issues. Her articles have appeared in Entrepreneur, Fortune Small Business, The International Herald Tribune and The New York Times. In a past corporate life, Heather was editor of Computer Reseller News, where she was a featured speaker about everything from software as a service to IT security to mobile computing.

Heather started her journalism life as a business writer with United Press International in New York. She holds a B.A. in English literature from McGill University in Montreal, Quebec, and has a thing for Lewis Carroll.

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Apple has targeted the small business sector for growth
Rabid Howler Monkey 30th Dec
The iPhone and iPad, in addition to Mac OS X desktops, laptops (and servers) can only strengthen Apple's play for market share in this sector.
They are about to become less productive! Spreadsheets on any tablet are a pain!
@Peter Perry
It might change your mind. (But I doubt it.)
@Userama yes, it was a pain in the arse! It isn't the program it is that the input is so much more awkward than using a keyboard and mouse!
@Peter Perry
What's a spreadsheet anymore? And who's creating content on a tablet? Its all about getting content, not making it.
0 Votes
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@Peter Perry Right, because for viewing, pan and zoom are overrated on a 10-inch tablet. And as for creating content on an iPad, just use a Bluetooth keyboard. Psst! You can write with one as well.
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If MS can demonstrate compelling ...
P. Douglas Updated - 29th Dec
... touch based productivity apps on desktop and portable touch based PCs (hopefully at CES 2012) then the company should be able to make businesses and consumers wait for Windows 8. Yes it's going to be important for MS to demonstrate the advantages of Windows 8 on traditional PC hardware (e.g. a brand new ecosystem of apps) but MS must also has to wow the market with innovative touch based desktop and portable PC designs. E.g. I'd like to see touch based desktop and portable PC designs that have integrated VOIP based phones that come with wireless headsets, and are powered by an optional, advanced version of Skype. I'd like to see demonstrations of Office, Autodesk apps, and Adobe apps, that make use of styluses and innovative custom soft keyboards, in touch based apps. I'd like to see at least one tablet design where the tablet is able to pivot when placed on a flat surface, and where you can attach to it a physical keyboard using either the Transformer or Slider design by Asus.

It seems to me also that it would be prudent for MS to specify two or more tiers of Windows 8 systems. Tier 1 could be systems at about the iPad level, and tier 2 could be systems greater than this level. Tier 1 Windows 8 systems would be able to run light apps, and tier 2 Windows 8 systems would be able to run tier 1, as well as heavyweight apps like MS Office and Adobe Photoshop. Tier 1 systems could be based on ARM and Intel's Atom processors, while tier 2 systems could be based on Intel ix core processors. Tier 1 systems could be largely sold to consumers or business individuals with light computing needs, while tier 2 systems could be sold to businesses and consumers who need the full power of a PC. I believe the delineation would make it easier to sell Windows 8 PCs to the current low end tablet market, as well as the higher end PC market.
@P. Douglas

Good thoughts. I have only one "negative" comment. And that concerns your tier 2 tablets using Intel ix core processors. If manufactures can overcome the weight and short battery charge duration times traditionally associated with this Intel tablet design, than it should succeed in the market place. So far, the evidence that those issues have been addressed has not been demostrated.
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Intel claims that its ...
P. Douglas Updated - 29th Dec
... soon to be broadly released 22nm, tri-gate, Sandy Bridge chips, will yield about 50% power savings for a given chip's performance. Dell e.g. claimed earlier this year that its "Vostro 3550 [a Sandy Bridge based laptop], which includes a 15-inch screen, provides around 13.5 hours of battery life with a nine-cell battery and 7.5 hours on a six-cell battery, " PCs built around a System On a Chip (SOC) Sandy Bridge based technology, should show even greater power efficiency than those built around Sandy Bridge CPUs. Therefore OEMs should be able to bring out Tier 1 and Tier 2 PCs, based on Intel Sandy Bridge technology, with decent battery life.
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The iPhone and iPad, in addition to Mac OS X desktops, laptops (and servers) can only strengthen Apple's play for market share in this sector.

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