Just like most businesses, small and medium enterprises (SMEs) also rely on technology to propel their businesses forward. Smaller SMEs (small -and medium-scale enterprises) spend between RM5, 000 to RM20, 000 a year on ICT (information and communication technology) infrastructure, said MCA ICT Resource Centre CEO Andrew T.F. Wong.

Mid-size to upper mid-size SMEs spend anywhere from RM20, 000 to half a million ringgit a year, while the biggest SMEs are known invest more than RM500, 000 annually on ICT. In recent months, companies such as IBM, Microsoft, Hewlett-Packard and Cisco have all announced specialised solutions targeting SMEs.

However, SMEs with smaller technology budgets may not be able to afford these corporate solutions. Fortunately, there are ways to cut costs, especially in the software segment. Thanks to the Internet, there are plenty of freeware or low cost alternatives, and open- source software that can help SMEs to cut costs dramatically by removing the need to acquire software licences. These software often have essential features that may be sufficient for SMEs' scale of operations, thus making implementation quicker and simpler.

Additionally, users of commercial software have other costs, apart from the licences, that they need to consider, including administrative cost of handling the licences and additional expenses to keep it up-to-date. With open-source software, nobody is going to come after you for using an out-of-date version.

However, Wong cautioned, one has to look at the advantages and disadvantages before adopting one solution over the other. What works for one SME isn't necessarily right for another.

Source: http://star-techcentral.com/