SMBs are embracing developments in know-how to realize extra with a leaner workers, allow distant work, automate guide processes, and scale back errors. When applied thoughtfully, know-how will help smaller companies higher compete with their enterprise counterparts, save on rising labor prices, and generate a strong 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 subsequent 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 instances emerge. It additionally highlights the efforts of distributors providing extra SMB-specific applied sciences and bundles which might 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 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 high know-how space experiencing important 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% record GenAI as a high precedence, in comparison with 32.8% a yr earlier. SMBs are additionally investing steadily in cellular 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 way 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 increase safety and incorporate new applied sciences, akin to AI, to reinforce effectivity. Many SMBs need to enable their staff to work remotely, as they usually can’t afford to pay as a lot as bigger organizations. Consequently, they’re growing 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 knowledge strongly illustrates that SMBs are taking a security-first strategy 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 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 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 attaining their enterprise priorities – the primary response from a listing 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 affords nice advantages, akin 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 gadgets utilizing public Wi-Fi – suppose eating places, espresso outlets, airports, and extra. One other shift is the rise in AI investments. AI depends on a steady circulate 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. An information 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 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 give attention to working and rising their enterprise as a substitute of accelerating the scale of their IT workforce. Companion with Cisco to grab the chance within the SMB section and defend clients with safety and networking merchandise.
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