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Tax breaks and government dominate end-ofyear spend

Tax breaks and government dominate end-ofyear spend

SMBs and government are expected to drive end-of year spending this June, several industry representatives claim.

SMBs and government are expected to drive end-of year spending this June, several industry representatives claim.

ComputerCorp services sales director, Roy Pater, said tax time would be important this year because of the Government’s 50 per cent incentive for SMBs. This was despite the fact that spending in June had flattened in recent years.

“SMBs and mid-market are finding that [tax] incentive very attractive, so we want to take advantage of that,” he said. “There are certain guys who are still going gangbusters, and some aren’t. People associated around retail are okay, and there are some pockets of the corporate market. SMB and mid-market are still holding up and are chasing managed services.” Government is also expected to be a key driver of end-of-year spending this year.

“With the Gershon review, government agencies have held back and are now suddenly getting rid of budget,” Pater said.

While Symantec is seeing spend across all segments, the software vendor’s partner director, David Dzienciol, agreed government verticals were the biggest spenders.

“We’re finding in the enterprise spaces that customers are using the end of the financial year looking to recontract, and looking for savings in locking in longer term contracts,” he added. “We’re finding the best way to make sales at the moment is by helping customers make those recontracts, as well as realise a ROI, ideally within a six-month window.”

Data#3 managing director, John Grant, was less convinced of specific areas of opportunity, but remained optimistic the listed integrator would see the usual last-minute surge in product procurement by June 30 as corporates looked to spend the last bit of money in their pockets.


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