SMBs are embracing developments in know-how to attain extra with a leaner employees, 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 growing labor prices, and generate a strong ROI.
IDC’s information clearly illustrates this pattern. In accordance 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 share 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 circumstances emerge. It additionally highlights the efforts of distributors providing extra SMB-specific applied sciences and bundles which can be inexpensive and straightforward 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 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 share level improve from 35.1% a yr earlier. Moreover, 45% checklist 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 for the reason that pandemic-era transformation of workplace tradition. In 2025, 52.8% of small companies report prioritizing investments in communications by 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, corresponding 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 flexibility to work remotely or in a hybrid method.
Nevertheless, IDC’s information strongly illustrates that SMBs are taking a security-first method to know-how 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 depend upon 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 mentioned that growing safety is a high funding precedence for them within the coming yr. Concurrently, 46.4% checklist 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 give attention to safety. One is the shift to the cloud from on-premises options. Whereas the cloud gives nice advantages, corresponding to accessibility from wherever, pay-as-you-go pricing, and limitless storage capability, it additionally signifies 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 stream of information to operate. SMBs are demanding readability on the supply of the info used to coach giant language fashions. Is it the seller’s information, the SMB’s information, or artificial information? How is that information 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 could possibly 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 main 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 give attention to working and rising their enterprise as an alternative of accelerating the scale of their IT group. Companion with Cisco to grab the chance within the SMB phase and shield clients with safety and networking merchandise.
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