Date Posted: 8/26/2008
Midsize Companies Say Information Security Outranks Reducing Costs as a Business Issue, Finds Arrow ECS Midmarket Survey
ENGLEWOOD, Colo.--(BUSINESS WIRE)--A majority of information technology decision-makers at U.S. midsize companies say that information security is the most important business issue for their companies’ future success, followed by reducing costs and improving customer service. This is just one of the findings of a survey by the Midmarket Group of Arrow Enterprise Computing Solutions, a business segment of Arrow Electronics, Inc. (NYSE: ARW - News).
The survey, which examines the role and importance of technology in addressing business issues at midsize companies, finds that 61 percent plan to increase spending on information technology (IT) in the coming year, with only 10 percent expecting budget cuts.
“These findings affirm what we’re hearing from our business partners who are on the front lines with midmarket companies, the fastest growing sector of the economy -- information security offerings are a top priority,” said Mark Taylor, vice president and general manager of Arrow ECS Midmarket Group, which was formed to help partners build their midmarket business with solutions, training and sales support.
Overall, comparatively few (19 percent) midsize companies express a high level of satisfaction with how their companies use IT to address business priorities; most (81 percent) are only somewhat or not satisfied. While 78 percent rate security as a very important business issue, only 32 percent are very satisfied with how their company is addressing security concerns.
“We are helping midsize companies bridge this gap by providing our reseller partners with midmarket security solutions, marketing campaigns to reach the end users, and the training required to sell and implement those solutions,” said Taylor. “And despite the negative news about the economy, the midmarket is a great growth opportunity for value-added resellers.”
The Arrow ECS survey polled midsize companies with annual sales volumes ranging from less than $100 million to $1 billion or more. A majority of these companies (58 percent) feel they are at a competitive disadvantage compared to Fortune 500-sized companies in utilizing technology for growth. However, more than half of those surveyed (54 percent) express confidence in their ability to level the playing field with their larger competitors if they had access to the same technology.
Respondents feel that their technology consultants and providers could improve in the areas of cost of services and solutions (52 percent), technical knowledge (44 percent) and understanding of their business issues (40 percent). At present, 29 percent say they turn to local IT consultants for strategic and tactical advice, while 59 percent look internally and 40 percent do their research on the Internet.
About the Midmarket Survey
The Arrow ECS Midmarket Group Study was conducted by telephone during April 2008 by the primary research unit of Echo Research, a global research company. In total, 202 information technology executives were interviewed; their job responsibilities included determining IT needs, managing and supervising IT systems and/or approving or selecting IT consultants. Responding companies, all U.S.-based, had annual sales ranging from less than $100 million to $1 billion or more.
About Arrow Enterprise Computing Solutions
Arrow ECS, a business segment of Arrow Electronics, Inc. (NYSE: ARW - News), provides enterprise and midrange computing products, services and solutions to value-added resellers, system integrators, and independent software vendors. Based in Englewood, Colo., Arrow ECS connects its customers to the world’s foremost technology suppliers, including HP, IBM, Sun Microsystems, EMC, NetApp, Hitachi Data Systems, and other leading storage networking, software, and security suppliers. Arrow ECS reported $4.8 billion in worldwide computer products sales in 2007. Visit www.arrowecs.com for more information.
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