SMBs are embracing developments in expertise to realize extra with a leaner workers, allow distant work, automate handbook processes, and scale back errors. When applied thoughtfully, expertise may help smaller companies higher compete with their enterprise counterparts, save on rising labor prices, and generate a sturdy ROI.
IDC’s knowledge clearly illustrates this pattern. Based on IDC’s Worldwide Small and Medium Enterprise Survey (February 2025), 81.8% of all SMBs will enhance their tech budgets over the following 12 months. Moreover, a smaller share of SMBs plan to chop expertise spending this 12 months (1.7%, in comparison with 4% in 2024 and eight% in 2023), reflecting SMBs’ rising confidence in applied sciences like AI/automation as extra use circumstances emerge. It additionally highlights the efforts of distributors providing extra SMB-specific applied sciences and bundles which can be inexpensive and simple to deploy and handle. Straightforward set up, upkeep, and use are paramount for small and medium companies, as 36% of SMBs do not need any full-time, in-house IT workers. A big 85.5% of small companies (these with 1-99 workers) with a full-time IT worker solely have one, in comparison with 40.9% final 12 months.
A high expertise space experiencing important funding development amongst SMBs is AI. Certainly, 47.5% of all SMBs say that conventional AI is a high funding precedence for them within the subsequent 12 months – a greater than 12 share level enhance from 35.1% a 12 months earlier. Moreover, 45% checklist GenAI as a high precedence, in comparison with 32.8% a 12 months earlier. SMBs are additionally investing steadily in cell employee assist, a pattern that has continued because the pandemic-era transformation of workplace tradition. In 2025, 52.8% of small companies report prioritizing investments in communications via video collaboration or video conferencing, versus 43.7% final 12 months. Small companies are searching for to improve to the newest video and collaboration instruments that enhance safety and incorporate new applied sciences, comparable to AI, to reinforce effectivity. Many SMBs need to permit their workers to work remotely, as they usually can’t afford to pay as a lot as bigger organizations. Consequently, they’re creating inventive methods to retain high workers by providing versatile working hours and the flexibility to work remotely or in a hybrid method.
Nonetheless, IDC’s knowledge strongly illustrates that SMBs are taking a security-first strategy to expertise investments. Earlier than investing in a brand new system or answer, they guarantee it’s safe. As SMBs have few, if any, IT workers to handle cybersecurity threats, they rely upon expertise suppliers to implement strong safety measures. Growing safety is each a high funding precedence and a high problem for SMBs; 51.3% of SMBs stated that rising safety is a high funding precedence for them within the coming 12 months. Concurrently, 46.4% checklist implementing new expertise securely as a high problem to reaching their enterprise priorities – the primary response from a listing of ten totally different choices.
There are a number of contributors to this intense deal with safety. One is the shift to the cloud from on-premises options. Whereas the cloud affords nice advantages, comparable to accessibility from wherever, pay-as-you-go pricing, and limitless storage capability, it additionally implies that SMBs’ distant or hybrid staff are accessing business-critical networks from private units utilizing public Wi-Fi – suppose eating places, espresso retailers, airports, and extra. One other shift is the rise in AI investments. AI depends on a steady circulate of knowledge to perform. SMBs are demanding readability on the supply of the info used to coach giant language fashions. Is it the seller’s knowledge, the SMB’s knowledge, or artificial knowledge? How is that knowledge getting used, and what protocols are in place to make sure safety? Many SMBs are simply starting to construct model consciousness, shopper belief, and income. An information breach that tarnishes their picture may very well be catastrophic.
With nice technological developments come nice obligations. Whereas expertise is quickly evolving to assist SMBs sustain with their swift tempo of development, automate processes, allow distant work, and extra, its major function is to be safe.
Message from the Sponsor
SMBs want larger safety within the AI period. By embedding safety into our complete portfolio, Cisco helps SMB clients deal with working and rising their enterprise as a substitute of accelerating the dimensions of their IT staff. Associate with Cisco to grab the chance within the SMB section and defend clients with safety and networking merchandise.
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