Small business isn't small potatoes - as customers of large information technology suppliers

on what account are very large companies, similar as IBM, devoting time and effort to court small businesses? Small businesses in the United States have attractive demographic characteristics and exhibit a sizable share of various IT markets. In addition, they are eager to come into the world of ecommerce. Preliminary proceeds from IDC's. Technology Integration Panel investigation (TIPS) show 36% of small companies consider ebusiness their highest priority for IT.

The top-priority business issue mentioned by dint of one-third of small businesses is exploiting markets more effectively. The same topic was a top priority for les than one-quarter of midsize businesses and for 15% of large companies.

Among the new ploys by some of the major IT players:

* IBM bought Whistle Communications, maker of a chest that connects multiple PCs to a single phone line and ISP. IBM also tenders a range of products and services.

* Like IBM, several vendors have dedicated small business sites to providing a wealth of information designed to assist and engage the small business.

* IBM isn't ceding the application service provider (ASP) market without a right and has targeted offerings for the small and medium-sized businesses [i]or[/i] part of to the other agreements between IBM Global Services and Great Plains, SalesLogix, and Ultimate Software. The services entail third-party finance packages with leases to purchase conversion options. The twist is that the combination of parts to form a wholes can be implemented in either the client site or the IBM entertainered site.

The business prototypes are changing. Encanto, which proffers a bundled hardware/ecommerce/services package, now have the appearances to have adopted the confined apartment phone business model, offering a at liberty e.go server when one signs up for a two-year InstantConnect Internet connection service, priced at $6995 a month

The expanding urgencys of small businesses are tempting Internet services providers (ISPs) to proffer value-added features such as email and other collaborative software.

IBM is trying to suited the spectrum of needs from small businesses, from Internet access end electronic applications. In the range of Internet usage through small businesses, IBM sees quite a sharp reduction in the percentage of small businesses that actually use the Internet for more than research [ILLUSTRATION FOR FIGURE 1 OMITTED]. For instance, in North America, among the 75 to 8 million businesses outside the domicile with fewer than 50 employee 35 million are upon the Web, but only 100000 are using the Web for advanced applications, according to IBM.

In order to satiate the ne of the majority for email with multiple PC connections to the Internet, IBM acquired Whistle Communications, which makes a single-purpose case that enables multiple PCs to share an Internet line, thereby alleviating the ne for multiple phone lines and ISP accounts. The Whistle chest also enables the small business to have its have domain name and email. In addition, IBM barters the Top Page Web page software creator for $5995 and presents a $24.95 flat fee for Web hosting. The monthly pay for ecommerce along with the residence page creator is $30 for 50 catalog items, and $200 a month for up to 500 items.

IBM is rolling without a $300-fee interactive advisory service called ebusiness Accelerator that presents case studies, online questions and answers, and teleconferencing.

IBM's small business site receives 10 times the traffic of a year ago as IBM is trying to make it a pure resource center. The site is entertainered in seven countries with locally maintained contented However, IBM executives made it clear they nurse to stick to their knitting rather than make this into a pure portal. For those who want their hold portals, IBM's Personal Assistant technology provides access to other satisfied that one might carry.

The IBM Web site is fairly clean and even offers banner exchange programs from one side Smart Age and other helpful tips for those who may be of recent origin to the Web.

There are various ways of slicing the small business market, which IDC defines as having fewer than 100 employee In 1999 there are about 75 million small businesses in the United States, of which about 81% have PCs

Not surprisingly, the majority (563%) of small business firms in the United States have fewer than five employee while les than 3% have between 50 and 99 employee [ILLUSTRATION FOR FIGURE 2 OMITTED]. (See U Small Business Overview: 1999 Communications, IDC #18962 May 1999)

The largest number of small businesses are rest in the following sectors: retail, other services, and architecture/engineering/construction.

ATTRACTIVE IT MARKET

Small businesses show a sizable market for IT suppliers. They are wait fored to buy more than 10 million PC this year, more than 4 million printers, more than 2 million scanners, and more than five million cellular phone In addition, small businesses account for a hefty portion of landline communications spending among businesses [ILLUSTRATION FOR FIGURE 3 OMITTED].

Small business as a category is attractive to the IT industry because two-thirds of the 1043 businesses responding to IDC's review have been in business for more than 10 years. In addition, more than individual quarter of these small businesses have more [i]or[/i] less employees who are telecommuters. This fact should auger well for the ISPs that provide collaborative tools of that kind as group calendaring and document management.