Raising capital has always been tricky for SMBs.  It restrains development and expansion, and banks are often stingy in offering financial help.  Thankfully, not everybody is blind about this setback as Big Blue announced a stake of $1 billion to help SMBs secure funding for new tech hardware, software and services or what techie people fondly calls “consumerization of IT.”

Nowadays, business owners are looking for technologies that are home-based and easy to use, and so cloud services are given much thought.  According to an IBM survey, 60 percent of SMBs are now looking into cloud offerings, subsequently peaking the interest of IBM’s Global financing unit to help them acquire new products and services.  The tech giant also devised a catalog of products and services that are priced at a per-user or –consumption basis which are reasonable for small enterprises.  The list is inclusive of cloud services, analytics, security and products from Netezza, Cognos, Cast Iron and other IBM-acquired companies.

SMBs are not to be taken lightly. They comprise majority of the US economy, and approximately 90 percent of the global workforce.  They also employ 40 percent of high-tech workers and created two-thirds of new jobs over the last 15 years.  According to another study conducted by IBM, SMBs’ (less than a thousand employees) spending on technology amount to a quarter of a trillion dollars a year. However, a survey by Pepperdine University and Dun & Bradstreet reveals that 35 percent of SMBs are still restricted by financial drawbacks so they can’t hire more workers.

A billion dollars might not be enough to help every SMB put their finances together but it’s a relief that IBM won’t be as tightfisted as banks in lending cash.  Big Blue will not be dealing with SMBs first-hand though, so they will be distributing the funds via small business partners such as CDW and Ingram Micro (sellers of IBM gear).  “It’s a really fragmented market with literally thousands of local players,” he says. “It’s a market based on long-term local relationships.”

Beyond software and hardware services, SMBs are also tightening their belt by choosing freelancers or per contract employees online. This will dramatically cutback the cost for office space, insurances and what not.

“Companies gain agility by hiring contingent workers in the cloud,” said Fabio Rosati, CEO of Elance.

“And online job-seekers look for work anywhere because they can telecommute and work remotely with greater ease. Online work platforms that match demand and supply and make remote management possible, allow businesses to achieve huge improvements in flexibility and productivity.”

Even IBM is outsourcing.  The tech giant recently renewed a billion worth of contract with India-based Vodafone Essar to manage IT systems till 2017.