SMBs are embracing developments in know-how to realize extra with a leaner workers, allow distant work, automate handbook processes, and cut back errors. When applied thoughtfully, know-how can assist 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. In keeping 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 know-how 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 instances emerge. It additionally highlights the efforts of distributors providing extra SMB-specific applied sciences and bundles which can be reasonably priced and straightforward to deploy and handle. Simple set up, upkeep, and use are paramount for small and medium companies, as 36% of SMBs would not 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 yr.
A high know-how space experiencing vital 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 proportion level improve from 35.1% a yr earlier. Moreover, 45% record GenAI as a high precedence, in comparison with 32.8% a yr 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 by means of video collaboration or video conferencing, versus 43.7% final yr. Small companies are searching for to improve to the most recent video and collaboration instruments that enhance safety and incorporate new applied sciences, equivalent to AI, to boost effectivity. Many SMBs need to enable their staff to work remotely, as they typically can’t afford to pay as a lot as bigger organizations. Consequently, they’re creating inventive methods to retain high staff by providing versatile working hours and the power to work remotely or in a hybrid method.
Nevertheless, IDC’s knowledge strongly illustrates that SMBs are taking a security-first method to know-how 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 on know-how suppliers to implement sturdy 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 yr. Concurrently, 46.4% record implementing new know-how securely as a high problem to reaching 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 provides nice advantages, equivalent to accessibility from wherever, pay-as-you-go pricing, and limitless storage capability, it additionally implies that SMBs’ distant or hybrid employees 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 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, client belief, and income. A knowledge breach that tarnishes their picture may very well be catastrophic.
With nice technological developments come nice tasks. Whereas know-how 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 better safety within the AI period. By embedding safety into our whole portfolio, Cisco helps SMB clients concentrate on operating and rising their enterprise as an alternative of accelerating the scale of their IT crew. Companion with Cisco to grab the chance within the SMB section and defend clients with safety and networking merchandise.
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