SMBs are embracing developments in expertise to realize extra with a leaner employees, allow distant work, automate guide processes, and cut back errors. When carried out thoughtfully, expertise may also 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 development. 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 yr. Moreover, a smaller proportion of SMBs plan to chop expertise spending this yr (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 are reasonably priced and straightforward 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 staff. A major 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 yr.
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 proportion level improve from 35.1% a yr earlier. Moreover, 45% checklist GenAI as a prime precedence, in comparison with 32.8% a yr earlier. SMBs are additionally investing steadily in cellular employee assist, a development 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 means of video collaboration or video conferencing, versus 43.7% final yr. Small companies are searching for to improve to the newest video and collaboration instruments that enhance safety and incorporate new applied sciences, reminiscent of 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 growing artistic methods to retain prime staff by providing versatile working hours and the flexibility to work remotely or in a hybrid method.
Nevertheless, 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 resolution, they guarantee it’s safe. As SMBs have few, if any, IT staff to handle cybersecurity threats, they rely on 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 yr. Concurrently, 46.4% checklist implementing new expertise securely as a prime problem to attaining their enterprise priorities – the primary response from an inventory of ten completely 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 gives nice advantages, reminiscent of accessibility from anyplace, 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 – suppose eating places, espresso retailers, airports, and extra. One other shift is the rise in AI investments. AI depends on a steady stream of information to operate. SMBs are demanding readability on the supply of the info 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, client belief, and income. An information breach that tarnishes their picture might be catastrophic.
With nice technological developments come nice duties. 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 larger safety within the AI period. By embedding safety into our total portfolio, Cisco helps SMB clients concentrate on working and rising their enterprise as a substitute of accelerating the scale of their IT crew. Companion with Cisco to grab the chance within the SMB phase and defend clients with safety and networking merchandise.
Leverage Cisco’s SMB safety content material as we speak to drive larger buyer demand
We’d love to listen to what you suppose. Ask a Query, Remark Under, and Keep Linked with #CiscoPartners on social!
Cisco Companions Fb | @CiscoPartners X/Twitter | Cisco Companions LinkedIn
Share:
