SMBs are embracing developments in expertise to realize extra with a leaner employees, allow distant work, automate handbook processes, and cut back errors. When applied thoughtfully, expertise may also 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 enhance their tech budgets over the following yr. Moreover, a smaller share of SMBs plan to chop expertise 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 don’t 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 yr.
A prime expertise space experiencing important 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 enhance from 35.1% a yr earlier. Moreover, 45% checklist GenAI as a prime precedence, in comparison with 32.8% a yr earlier. SMBs are additionally investing steadily in cellular employee help, 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 video collaboration or video conferencing, versus 43.7% final yr. Small companies are in search of to improve to the most recent video and collaboration instruments that increase safety and incorporate new applied sciences, corresponding to AI, to reinforce effectivity. Many SMBs need to enable their workers to work remotely, as they usually can’t afford to pay as a lot as bigger organizations. Consequently, they’re growing artistic methods to retain prime workers by providing versatile working hours and the power to work remotely or in a hybrid method.
Nonetheless, IDC’s knowledge strongly illustrates that SMBs are taking a security-first method 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 depend 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 rising safety is a prime funding precedence for them within the coming yr. Concurrently, 46.4% checklist implementing new expertise 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 provides nice advantages, corresponding to accessibility from wherever, pay-as-you-go pricing, and limitless storage capability, it additionally signifies that SMBs’ distant or hybrid employees 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 circulation 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. A knowledge breach that tarnishes their picture may very well be catastrophic.
With nice technological developments come nice obligations. Whereas expertise 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 better safety within the AI period. By embedding safety into our total portfolio, Cisco helps SMB prospects give attention to working 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 phase and defend prospects with safety and networking merchandise.
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