new forecast from technology research firm IDC, projects that SMB IT spending will hit $600 billion in 2018 and reach nearly $700 billion by 2021 – growing at nearly 5% a year.

According to the press release announcing the forecast, IDC divides the SMB market into two buckets: mid-sized and small. Mid-sized businesses (with employee size ranging from 101-999) will spend more than $400 billion worldwide on IT this year while small businesses (1-99 employees) are expected to spend $191 billion.

Further, IDC says the U.S. accounts for 31% of the global spend or $186 billion. Using the same percentages this would suggest that small businesses (1-99 employees) are expected to spend $60 billion on IT solutions and services in 2018.

As some of you may remember, at the Cloud Adoption Summit held at The Laundry in San Francisco last December, I presented TAI’s initial forecast indicating that U.S. SMBs (1-99 employees) would spend about $8 billion in 2018 on cloud solutions. This would represent about 13% of the expected $60 billion spend.

Our gut tells us this is a reasonable forecast for 2018. As we cull through the  data and speak around the industry, we’ll take another stab at the forecast and deliver a revised set of numbers later this spring.

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