Cm It Aims To Triple Its Bay Area Franchise Network

For small businesses that rely on IT support contractors for their computer networks, it's all about dependability.

(Monday, November 14, 2005) - CM IT aims to triple its Bay Area franchise network

by Jeff Nachtigal

Jesse Montoya estimated that he has hired at least eight independent IT contractors to manage network and computer issues in his Pleasanton insurance office over the past several years. Getting IT contractors into the office to fix computer issues as soon as possible was a problem.

"They weren't always available when we needed them in a timely manner, in a reasonable time period, not three days later," said Montoya, president of Bay Valley Insurance Brokerage.

It is this gap in dependable, name-brand IT services for small businesses that Austin, Texas-based CM IT Solutions is hoping to capitalize on.

"Across the country there are 11 million small and medium-sized businesses, so it's a huge marketplace for IT solutions," said CM IT Solutions president Gordon Bridge.

With the goal of capturing a sizable slice of the fragmented IT support market, CM IT Solutions is in the midst of a nationwide expansion. The company has franchises in 32 states, with plans to reach 500 franchises by 2010.

The Bay Area supports seven CM IT franchises, and the company would like to add 14 more by the end of 2006.

Research reports suggest CM IT is moving into the market at a very good time.

A 2004 Forrester report found that U.S. small businesses bought $320 billion in software and services, which represented 44 percent of all IT acquisitions. Growth projections favored small businesses over large enterprise by 2 percent.

A study published by the Tri-Valley Business Council showed that the number of small businesses with five or fewer employees had grown to represent 80 percent of all firms in the Tri-Valley area by 2003, compared to 75 percent in 1990.

"We think the economic timing is right to expand, and the Bay Area is a big IT part of the country," said Bridge, who owned a franchise in New Jersey before he took over leadership of the company in 2004.

CM IT expects that its central help desk and relationships with equipment providers Dell Inc., Symantec Corp. and Intuit that bring discounts for customers will be a selling point for franchise owners.

Kevin Baker debated whether it was worth it to pay the $35,000 CM IT franchise and territory fee - CM IT sells areas based on zip codes to its franchisees - or go it alone in the highly competitive field of independent service providers in the Pleasanton-San Ramon area.

His decision tilted toward CM IT.

View all CM IT Solutions Press Releases

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