SMBs are embracing developments in expertise to realize extra with a leaner workers, allow distant work, automate guide processes, and scale back errors. When applied thoughtfully, expertise may also help smaller companies higher compete with their enterprise counterparts, save on growing labor prices, and generate a strong ROI.
IDC’s knowledge clearly illustrates this development. Based on IDC’s Worldwide Small and Medium Enterprise Survey (February 2025), 81.8% of all SMBs will improve their tech budgets over the subsequent 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 are inexpensive and straightforward to deploy and handle. Straightforward set up, upkeep, and use are paramount for small and medium companies, as 36% of SMBs should not have 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 prime expertise space experiencing important funding progress 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% checklist GenAI as a prime precedence, in comparison with 32.8% a 12 months earlier. SMBs are additionally investing steadily in cell employee help, 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 12 months. Small companies are looking for to improve to the newest video and collaboration instruments that increase safety and incorporate new applied sciences, akin to AI, to boost effectivity. Many SMBs need to permit their workers to work remotely, as they usually can not afford to pay as a lot as bigger organizations. Consequently, they’re creating artistic methods to retain prime 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 sturdy 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% checklist 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 give attention to safety. One is the shift to the cloud from on-premises options. Whereas the cloud provides nice advantages, akin to accessibility from anyplace, 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 – assume 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 perform. 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 may very well be catastrophic.
With nice technological developments come nice duties. Whereas expertise is quickly evolving to assist SMBs sustain with their swift tempo of progress, 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 total portfolio, Cisco helps SMB prospects give attention to operating 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 prospects with safety and networking merchandise.
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