SMBs are embracing developments in expertise to realize extra with a leaner workers, allow distant work, automate handbook processes, and scale back errors. When carried out thoughtfully, expertise may help smaller companies higher compete with their enterprise counterparts, save on growing labor prices, and generate a sturdy ROI.
IDC’s knowledge clearly illustrates this pattern. In line with IDC’s Worldwide Small and Medium Enterprise Survey (February 2025), 81.8% of all SMBs will improve 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 instances emerge. It additionally highlights the efforts of distributors providing extra SMB-specific applied sciences and bundles which can be reasonably priced and simple to deploy and handle. Simple set up, upkeep, and use are paramount for small and medium companies, as 36% of SMBs wouldn’t have any full-time, in-house IT staff. A big 85.5% of small companies (these with 1-99 staff) with a full-time IT worker solely have one, in comparison with 40.9% final 12 months.
A prime expertise space experiencing important funding development amongst SMBs is AI. Certainly, 47.5% of all SMBs say that conventional AI is a prime funding precedence for them within the subsequent 12 months-a greater than 12 share level improve from 35.1% a 12 months earlier. Moreover, 45% listing GenAI as a prime precedence, in comparison with 32.8% a 12 months earlier. SMBs are additionally investing steadily in cell employee assist, a pattern that has continued for the reason that pandemic-era transformation of workplace tradition. In 2025, 52.8% of small companies report prioritizing investments in communications by way of video collaboration or video conferencing, versus 43.7% final 12 months. Small companies are in search of to improve to the most recent video and collaboration instruments that enhance safety and incorporate new applied sciences, equivalent to AI, to reinforce effectivity. Many SMBs need to permit their staff 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 prime staff by providing versatile working hours and the power 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 staff to handle cybersecurity threats, they rely upon expertise suppliers to implement strong safety measures. Growing safety is each a prime funding precedence and a prime problem for SMBs; 51.3% of SMBs stated that growing safety is a prime funding precedence for them within the coming 12 months. Concurrently, 46.4% listing implementing new expertise securely as a prime problem to reaching their enterprise priorities-the primary response from an inventory of ten totally different choices.
There are a number of contributors to this intense concentrate on safety. One is the shift to the cloud from on-premises options. Whereas the cloud affords nice advantages, equivalent to accessibility from wherever, pay-as-you-go pricing, and limitless storage capability, it additionally signifies that SMBs’ distant or hybrid employees are accessing business-critical networks from private gadgets utilizing public Wi-Fi-think eating places, espresso retailers, airports, and extra. One other shift is the rise in AI investments. AI depends on a steady circulation of knowledge to operate. SMBs are demanding readability on the supply of the information used to coach massive 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 could possibly 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 main position is to be safe.
Message from the Sponsor
SMBs want better safety within the AI period. By embedding safety into our complete portfolio, Cisco helps SMB clients concentrate on operating and rising their enterprise as a substitute of accelerating the scale of their IT crew. Associate with Cisco to grab the chance within the SMB phase and defend clients with safety and networking merchandise.
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