2001 U.S. Medium Business Overview

The following report is based on the findings of AMI-Partners’ 2001 U.S. Medium Business Market Opportunity Assessment and provides definitive results across all key areas of AMI’s IT field research. AMI-Partners’ defines medium businesses in the following way “MBs have 100-999 employees, are non-residential and non-government organizations, and represent 1.3% of the total universe.” Currently 100,000 entities comprise the U.S. MB market and the number of U.S. Medium Businesses is growing at approximately 2.5% annually. Data were collected during the Q2, 2001 timeframe and is a nationally representative sample.

Key highlights include findings on the following technology areas:

• Demographics
• Telecommunications
• Computing
• Networking
• Internet/e-Business
• Wireless

Based on proprietary surveys of Small and Medium Businesses in the United States, Europe, Asia/Pacific and Latin America, AMI-Partners' comprehensive data on Internet, IT, eBusiness, and Communications investment and usage is presented in a highly actionable, graphical format with go-to-market insights and analysis.

U.S. MB Introduction

U.S. MB IT/Telecom Spending Overview / Changes

U.S. MB Firmographics Overview

U.S. MB Firmographics Overview (cont.)

U.S. MB Attitudes and Strategic Directions Overview

U.S. MB Attitudes and Strategic Directions Overview (cont.)

U.S. MB Computing Overview

U.S. MB Networking Overview

U.S. MB Internet Overview

U.S. MB Methodologies and General

U.S. MB Survey Methodology Overview

U.S. MB Recruitment and Survey Process

U.S. MB Market Definition

U.S. MB Sampling Pool by Size of Business

U.S. MB Sampling Pool by Type of Business

U.S. MB Weighting Factors by Employee Size

U.S. MB Margin of Error

U.S. MB Demographics

U.S. MB Number of Businesses by Employee Size

U.S. MB Size of Company: Total Share of Enterprises vs. Total Number of Employees

U.S. SMB Business Workforce by Employee Size

U.S. MB Number of Businesses by Vertical Industry

U.S. MB Mobile Workforce

U.S. MB Telecommuting

U.S. MB Headquarters Location

U.S. MB Headquarters Location by Vertical Industry

U.S. MB Company’s Physical Location

U.S. MB Current and Planned Number of Branches

U.S. MB Total Number of Branch Sites/Locations

U.S. MB Average Revenues

U.S. MB Changes in Annual Revenues

U.S. MB Changes in Average Revenues (Cont. 1)

U.S. MB Changes in Average Revenues (Cont. 2)

U.S. MB Revenue Generation - B2B vs. B2C

U.S. MB Maintenance of Corporate Credit Cards

U.S. MB Age of Businesses

U.S. MB Average Number of FT Employees Planned for Hire

U.S. MB Frequency of Products and Services Purchasing

U.S. MB Branch Location

U.S. MB Overview of MB Emphasis on Factors for Business Growth

U.S. MB Summary Comparisons

U.S. MB Key Technology Penetration

U.S. MB Market Overview: Expanded Technology Penetration

U.S. MB IT/Telecom Spending Areas

U.S. MB IT/Telecom Spending Comparisons

U.S. MB Year-to-Year Growth Patterns by IT/Telecom Spending Area

U.S. MB Year-to-Year Growth Patterns in Technology Penetration

U.S. MB Attitudes and Strategic Directions

U.S. MB Overview of MB Business Attitudes

U.S. MB Perceived Importance of Various Business Functions and Applications

U.S. MB Perceived Importance of Various Business Functions and Applications (Cont.)

U.S. MB Overview of IT Purchase Preferences

U.S. MB Number of Full-Time IT Service and Support Employees

U.S. MB Average Annual IT Budget

U.S. MB IT Services Outsourcing

U.S. MB Decision Making and Media Usage

U.S. MB IT Decision Makers

U.S. MB Telecom and Other Products & Services

U.S. MB Total Annual Telecom Spending

U.S. MB Average Annual Telecom Spending

U.S. MB Total Annual Local Telecom Spending by Employee Size and Industry

U.S. MB Total Annual Long Distance Spending by Employee Size and Industry

U.S. MB Average Monthly Telecom Spending per MB by Employee Size

U.S. MB Cellular Phone Penetration and Spending

U.S. MB Pager Penetration and Spending

U.S. MB Use of Conferencing Services

U.S. MB Spending for Outsourcing of Business Functions by Employee Size

U.S. MB Current Outsourcing of Business Processes

U.S. MB Computing – Summary Charts

U.S. MB Total Spending on Computing Hardware, Software, and Service/Support

U.S. MB Computing – Hardware and Service/Support

U.S. MB Computer Ownership and Installed Base

U.S. MB Computer Ownership and Installed Base By Employee Size

U.S. MB Desktop and Portable PCs Owned per Employee; By Employee Size (PC to Employee Ratio)

U.S. MB Desktop and Portable PCs Owned per Employee; By Vertical Industry (PC to Employee Ratio)

U.S. MB Average Computers Purchased and Total Shipments

U.S. MB Trends in Ownership of Top Five Computer Brands

U.S. MB Last 12 Month Purchasing Trends of Top Five Computer Brands

U.S. MB Planned Computer Purchases

U.S. MB Planned Computer Purchase by Employee Size

U.S. MB Average Planned Computer Spending per MB

U.S. MB Current and Planned Overall Channel Usage for Computer Purchases

U.S. MB Computer Service and Support Spending by Employee Size

U.S. MB Interest in Comprehensive Outsourced IT Services

U.S. MB Handheld Devices

U.S. MB Leading Brand vs. White Box Computers

U.S. MB Computing – Software

U.S. MB Trend in Total Software Spending by Employee Size

U.S. MB Packaged and Custom Software Spending by Employee Size

U.S. MB Application Software Penetration

U.S. MB Trends of Application Software Penetration

U.S. MB Operating System Used/Planned to be Used

U.S. MB Year-Over-Year Change in Use of Operating Systems

U.S. MB Use of Custom Software by Employee Size and Industry

U.S. MB Computing – Application Hosting and Processes

U.S. MB Current Use of Hosted Applications

U.S. MB Application Hosted / Planned to be Hosted

U.S. MB Distribution of Spending for Hosted Software

U.S. MB Amount Willing to Spend for Hosted Applications Package

U.S. MB Total & Average Planned Spending on Hosted Applications by Employee Size

U.S. MB Computing – Printers and Peripherals*

U.S. MB Trend in Total Spending on Printers by Employee Size

U.S. MB Trend in Total Spending on Peripherals* by Employee Size

U.S. MB Total Spending on Printer Supplies by Employee Size and Industry

U.S. MB Printer Ownership and Installed Base

U.S. MB Planned Printer Purchases During the Next 12 Months by Employee Size

U.S. MB Printer Brands Currently Used

U.S. MB Peripheral* Ownership Among MBs

U.S. MB Networking – Summary Charts

U.S. MB Total Annual Networking Spending

U.S. MB Current and Planned Adoption of Networking Technologies

U.S. MB Networking – LAN-Related, Servers, Storage

U.S. MB LAN Penetration by Employee Size

U.S. MB Number of Nodes and Node Distribution

U.S. MB Server Installed Base

U.S. MB Server Shipments by Employee Size

U.S. MB Overall Server Brands Used

U.S. MB Channels Used for Purchasing LAN-Related Hardware and Software

U.S. MB Trends in Use of Network Operating Systems

U.S. MB Trends in Wireless LAN Penetration

U.S. MB SAN/NAS Brands Current and Planned

U.S. MB Current and Planned Use of VPNs

U.S. MB Current and Planned LAN Applications

U.S. MB LAN Upgrade Plans for the Next 12 Months

U.S. MB Networking Brands

U.S. MB Networking – WAN and Datacom-Related

U.S. MB Remote LAN Access

U.S. MB Lines Used to Access WAN

U.S. MB Backbone Transport

U.S. MB WAN Spending

U.S. MB Current and Planned WAN Applications

U.S. MB Datacom Vendors by Employee Size

U.S. MB Internet – Summary Charts

U.S. MB Overview of Internet-Related Spending

U.S. MB Overview of Average Internet-Related Spending

U.S. MB Overview of Planned Adoption of Internet Technologies

U.S. MB Trends in the Adoption of Internet-Related Technologies

U.S. MB Internet – Internet Access and Use

U.S. MB Internet Adoption by Employee Size and Industry

U.S. MB Leading Internet Service Providers

U.S. MB Monthly Internet Access Spending by Employee Size and Industry

U.S. MB Current Adoption of High-Speed Access Lines

U.S. MB Current and Planned Front Office Applications Via the Internet

U.S. MB Current and Planned Back Office/Operational Applications Via the Internet

U.S. MB Current and Planned IT-Related Applications Via the Internet

U.S. MB Internet Purchasing Overview

U.S. MB Annual Internet Purchase Spending by Employee Size

U.S. MB Expected Change in Internet Purchasing During the Next 12 Months

U.S. MB Product