This IDC study presents business demographics (employees, number of entities), performance indicators (revenue, profit), and total information and communication technology (ICT) spending per business size, vertical industry, and state.

IDC estimates that in February 2008 there were 842,194 businesses in Australia employing 10.626 million persons. Small and medium-sized businesses (SMBs), defined by IDC as employing less than 500 staff, represented 99.8% of businesses and 58% of employees nationwide.

"In such a fragmented space, segmentation strategies are a critical factor of success, and ICT vendors need to define precisely their target markets in terms of business size, vertical industry, and regional segmentation. Vendors should use the data presented in this IDC study to validate their approach of the SMB market," says Jean-Marc Annonier, research manager, IT Spending, IDC Australia.