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Tech Vendors Taking Aim At The Middle; May Be The Strongest Sector; Midsize corporate market emerging as prized target for sellers of tech wares.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| July 03, 2003 | Tsuruoka, Doug | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: DOUG TSURUOKA

Big companies long drove tech spending. Then small gained beauty during the dot-com boom, as tech providers sold to mom and pops, and start-ups racing to get up on the Web.

And today? With big companies cutting spending and dot-coms crashing, it's the midsize era for sellers of tech goods and services.

"The middle market's getting more attention because it's a clear and pragmatic growth opportunity," said Kneko Burney, an analyst for researcher In-Stat MDR.

Lots of tech sellers, starting at the top with IBM Corp. and Hewlett-Packard Co., recently have said that midsize business customers are the key to resparking growth. Midsize companies employ from 100 to 1,000 people.

Analysts and executives say there are several reasons for the midsize era. In the U.S., research shows, midsize companies are changing more rapidly in the tough economy than big ones.

Many midsize companies came from mergers among small firms or resulted from large companies divesting units. These restructurings have heightened their need for IT goods and services.

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