Abstract Information Technology is one among the high priority resource in the current competitive business scenario. Digital Infrastructure consists of Hardware, Software, Network, Protocols, Policies and Practices that together organize and deliver the increasing power to business and society. The Information Technology services such as Messaging services, Web services, Email services, Data services, Log Monitoring services and others are important for any business. The malfunction or failure of any IT resources during critical situations is not accepted by the stake holders of any business. The Service Level Agreement provides the relationship between the IT service provider and the business customers; it is an evidence of written document which properly addresses the issues. The issues and challenges of Information Technology infrastructure management in Small and Medium Business Enterprises are discussed in this paper. Keywords: Digital Infrastructure, Issues and Challenges of IT in SME, Open Source Infrastructure. Information Technology Services Issues and Challenges with A Case Study in Small Medium Enterprises Senthil Veerasamy* * Thiagarajar School of Management Thirupparankundram Madurai. Email: senthil@tsm.ac.in Article can be accessed online at http://www.publishingindia.com Introducion Information Technology services enhance the business activities and provide business information on our doorstep. Information Technology infrastructure and services are integral part of any business and is unavoidable in today’s competitive business scenario. IT Infrastructure includes traditional data and information but they also include signiicant explosion of data. The Proliferation of social media, cloud computing and mobile technology has enhanced the quality and quantity of data generated every day. Internet of Everything (IOE) which includes not only an interconnection of things but also an exploding digital network of people and data. During the last decade, the Business infrastructure has become digital with increased interconnections among products, processes and services. Across many irms spanning different industries and sectors, digital technologies (viewed as a combination of information, computing, communication and connectivity technologies) are fundamentally transforming business strategies, business processes, irm capabilities, products and services. Also these digital technologies are fundamentally reshaping traditional business strategy as modular, distributed, cross functional and global business processes that enable work to be carried out across boundaries of time, distance and function [Subhash Bhatnagar, 2000, P. Mohanan, 2000, Khaiser Nikam, 2004]. Globally more than 95% of business in most countries are small(<100 Employees) and 25-35% of world manufactured exports is in SMEs. The new arrivals of electronic gadgets such as Iphone, Ipad, TabletPC, PalmPC, Wearable devices and other digital devices are used by the end users and providing IT services to these devices are highly challenging. The IT services such as Message services, Web services, Mail services, Data services, Log Monitoring services and others are important for any business. The malfunction or failure of any IT resources during critical situations is not accepted by the stake holders of any business. The igure 1 shows the worldwide future growth of IT infrastructure space in Personal, Home, Small and Medium and other Business Enterprises.