SMEs choose SMEs: What a new study on the German IT market reveals

A recent study by the University of Potsdam shows that almost half of all small and medium-sized enterprises (SMEs) in Germany rely on solutions from the SME IT sector for their ERP software. What lies behind this, what does it mean for you as a decision-maker, and why is this topic more relevant than ever?

Who actually supports whom?

German SMEs are regarded as the backbone of the economy. That may sound like a cliché, but if you take a closer look at the figures, it quickly becomes clear that this is simply the reality. And within this backbone, there is a relationship that hardly anyone speaks about openly: that between SME users and the SME IT sector.

The Bundesverband IT-Mittelstand e.V. (BITMi) raised precisely this question and commissioned the Chair of Business Informatics at the University of Potsdam to provide an empirical answer. The results have been available since May 2026, and it is worth taking a closer look.

What the study examined

The research team led by Prof. Dr.-Ing. Norbert Gronau analysed a sample of around 2,500 companies. The methodological approach: using ERP systems as a proxy. The reasoning behind this is as simple as it is compelling.

ERP (Enterprise Resource Planning) software is the most widely used standard business software of all. It integrates accounting, stock management, CRM, production and more into a central platform. And because ERP providers typically offer a whole ecosystem of complementary solutions, the choice of ERP system provides a reliable indication of whether a company tends to rely on solutions designed for large corporations or on software tailored for SMEs.

For the study, two groups were clearly defined: the SME user base comprises companies with fewer than 1,000 employees. The SME IT sector on the supplier side consists of software companies with fewer than 500 employees, characterised by close customer relationships and specialisation.

The sample covered a total of over 4.6 million jobs, 72.5% of which were in SMEs. This provides a solid basis for reliable conclusions.

The key finding: almost one in two chooses SME IT providers

Among the 1,662 SME ERP user companies in the sample, 44.3% rely on solutions from SME IT providers, whilst 55.7% use corporate ERP systems such as SAP or Microsoft Dynamics. At first glance, this may appear to be a clear majority in favour of the large providers. But when you consider the marketing budgets, sales organisations and brand awareness that these large corporations bring to bear, holding on to almost half the market is a truly extraordinary achievement.

Particularly noteworthy is the reach of these SME solutions: they are used across all company sizes, and even among large enterprises, the share remains at over 20%. SME software is therefore no longer a niche topic for small businesses.

SMEs buy from SMEs – in most cases

An interesting finding from the study concerns selection behaviour by company size. There is a clear trend: users prefer IT providers from their own size category. Micro-enterprises are more likely than average to opt for software from smaller providers, whilst large enterprises tend to favour products from major corporations.

Looking at the percentages, the shift is clearly visible:

• Micro-enterprises (< 10 employees): 48.8% use SME ERP
• Small enterprises (< 50 employees): 52.9%
• Lower-tier SMEs (< 250 employees): 46.6%
• SMEs (< 500 employees): 37.8%
• Upper-tier SMEs (< 1,000 employees): 28.9%
• Large enterprises: 22.5%

What is striking is that even among upper-tier SMEs and large enterprises, SME ERP solutions are by no means insignificant. This speaks to the quality and performance of these providers.

Relevant across all sectors, not just in mechanical engineering for your IT team

Another key finding of the study: SME IT providers are by no means insignificant in any major sector. Whether in chemicals, electrical engineering, food, retail, property or IT services themselves, they hold significant market shares across the board.

As expected, they are particularly well represented in traditional SME sectors such as the service sector, metalworking and retail in general. Only in the automotive industry, where corporate group structures dominate, is their share somewhat lower. But even there, they are present.

This shows that SME IT companies do not have a specific home sector; they are generalists with deep specialisation.

Diversity as a strength: 197 different ERP systems in use in the supply chain

One detail that may come as a surprise at first glance: a total of 197 different ERP systems were identified in the sample. This is not a sign of fragmentation or chaos. It is a sign of diversity and competition.

On the supplier side, most of these systems come from small and medium-sized enterprises:

• Small enterprises (< 50 employees): 56 different systems (28.4% of all suppliers)
• Lower mid-market (< 250 employees): 63 systems (32.0%)

Together, these two size categories already account for 60% of all ERP providers on the market. Large corporations with more than 1,000 employees, on the other hand, make up only 13.2% of providers, but naturally account for a significant proportion of installations due to their widespread use.

What this means for you as a decision-maker

If you are currently considering a new software infrastructure for your company, or if your ERP system is getting on in years, this study sends a clear message: the market for medium-sized IT providers is capable, diverse and trustworthy. Opting for a large corporation’s solution is not automatically the safest choice, and choosing a medium-sized provider is not a compromise.

At the same time, you should bear in mind a question that the study does not explicitly answer, but which is directly related to it.

And then there is the issue of security

Software decisions are IT decisions. And today, IT decisions are always security decisions as well.

So whether you opt for a corporate-level solution or a medium-sized ERP platform: any system integrated into your business processes is also a potential point of attack. Ransomware, data breaches, compromised supply chains – these are no longer abstract scenarios. They affect companies of all sizes, across all sectors, on a daily basis.

Medium-sized companies in particular face a specific challenge here:

IT resources are limited, yet the threat landscape is complex. For most, operating their own Security Operations Centre (SOC) is simply not cost-effective.

This is precisely where Managed Detection and Response (MDR) comes in. Instead of building up in-house capacity – which is rarely cost-effective to operate in the long term – a specialist provider takes over the continuous monitoring, detection and response to threats. With NovaMDR™, we offer exactly that: an MDR solution consistently tailored to the needs of SMEs, without the complexity of large corporations, but with full SOC support. SMEs protecting SMEs, if you like. The same logic demonstrated by the BITMi study for ERP software therefore also applies to cybersecurity.

Conclusion: SME IT is not a stopgap solution; it is a conscious choice

The University of Potsdam study highlights what many in the field have long known: SME IT is structurally deeply embedded in the fabric of the German economy. Almost one in two SMEs relies on its solutions, across all sectors and company sizes, with a tendency towards loyalty.

This is no coincidence. It is the result of customer focus, specialisation and an understanding of what really drives SMEs. IT providers who think in terms of SMEs – rather than corporate structures – are able to connect with their customers’ language, requirements and pace.

For you and your business, this means: when making your next software decision, be sure to consider SME providers as well. Not out of solidarity, but because the figures show that it pays off.

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Gronau, N. (2026). Wie stark trägt der IT-Mittelstand den deutschen Mittelstand? Untersuchung für den Bundesverband IT-Mittelstand e.V. (BITMi). Universität Potsdam, Lehrstuhl für Wirtschaftsinformatik.