SMBs are embracing developments in know-how to realize extra with a leaner employees, allow distant work, automate handbook processes, and scale back errors. When carried out thoughtfully, know-how may 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. Based on IDC’s Worldwide Small and Medium Enterprise Survey (February 2025), 81.8% of all SMBs will improve their tech budgets over the following 12 months. Moreover, a smaller share of SMBs plan to chop know-how 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 might be inexpensive and simple 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 workers. A major 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 know-how space experiencing vital 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 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 cellular employee help, a development that has continued because the pandemic-era transformation of workplace tradition. In 2025, 52.8% of small companies report prioritizing investments in communications via video collaboration or video conferencing, versus 43.7% final 12 months. Small companies are in search of to improve to the newest video and collaboration instruments that enhance safety and incorporate new applied sciences, resembling AI, to reinforce effectivity. Many SMBs need to permit their workers to work remotely, as they typically can not afford to pay as a lot as bigger organizations. Consequently, they’re growing inventive 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 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 workers to handle cybersecurity threats, they rely on know-how suppliers to implement sturdy safety measures. Rising safety is each a prime funding precedence and a prime problem for SMBs; 51.3% of SMBs mentioned that growing safety is a prime funding precedence for them within the coming 12 months. Concurrently, 46.4% checklist implementing new know-how securely as a prime problem to reaching 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 presents nice advantages, resembling 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 outlets, airports, and extra. One other shift is the rise in AI investments. AI depends on a steady circulation of knowledge 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 could possibly be catastrophic.
With nice technological developments come nice obligations. 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 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 group. Companion with Cisco to grab the chance within the SMB phase and shield prospects with safety and networking merchandise.
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