Techaisle Blog

Focused on growth and committed to new solutions that expand business horizons – the SMB market is on the brink of a multi-year growth trajectory.

They are here - Techaisle's annual SMB, Core Midmarket and Upper Midmarket Top 10 IT Priorities, IT Challenges, and Business Issues infographics, 13th year of Techaisle tracking at a WW level, and is sought after by IT vendors, channel partners, and media. Techaisle surveyed nearly 5000 SMBs and Midmarket firms, quota sampled to ensure adequate coverage of four small businesses (1-9, 10-19, 20-49, and 50-99 employees), three core midmarket (100-249, 250-499, and 500-999 employees) and two upper midmarket (1000-2499, 2500-4999) segments. As a result, the data represents a robust and reliable sampling of the market segment for IT products and services.

Techaisle surveys thousands of small and midsized businesses (SMBs) to understand technology imperatives and directions. The annual survey establishes context by asking respondents to identify their top business goals, technology priorities, and IT challenges for the upcoming year.

Redefining the art of the possible

The SMB market is a study in contrasts: the tension between boundless aspiration and a constrained reality. However, data shows that a market that has mastered the cloud and is excited by AI will dedicate itself to growth in 2024.

In 2021, we predicted that AI would permeate small and medium-sized businesses (SMBs) and midmarket firms, not as an independent solution but as an integral feature within other products. As SMBs fully comprehend the inherent nature of AI, they will increasingly seek AI-powered solutions to prescribe actions that mitigate risks and enhance decision-making, business agility, and innovation proactively.

We also predicted that AI technology would evolve so rapidly that by the time SMBs become comfortable with data-driven decision-making, AI would be executing decisions that might be beyond the comprehension of business executives. The challenge with AI would shift from trusting data over intuition to trusting AI when insights into its decision-making process are not readily available in the cloud applications used by SMBs and midmarket firms. We expect this trend to continue into 2024.

After surveying over 3000 SMBs and midmarket firms, Techaisle has announced its top 10 SMB and midmarket predictions for 2024. There is intense market pressure on SMB and midmarket executives to deliver tangible progress towards – and benefits from – application innovation and digital business. At least some of this results from a worldwide fascination with Generative AI and its anticipated potential to transform nearly any function it might apply to. Gen-AI offers significant potential for SMBs and midmarket firms to enhance their operations and drive innovation. By leveraging this technology effectively, these businesses can improve efficiency, productivity, and customer satisfaction.

In 2024, SMBs and Midmarket business and technology leaders will maintain a practical perspective as they move into the digital future powered by AI. SMBs will invest in AI-infused, AI-embedded, tailor-made technology solutions to streamline operations and expand their customer base. To improve manageability, reduce complexity, and limit sprawl, pragmatism will overtake progressiveness. Technology choice and deployment complexity will create purchase inertia, empowering SMBs to seek suppliers capable of supporting a roadmap from the current state to a future-ready organization. SMBs will look for proof points in AI solutions that deliver tangible benefits within their environment. SMBs will adjust their own pricing strategies and implement cost-control measures. Labor shortages will prompt them to invest in employee training and retention initiatives to ensure smooth operations and efficiency. Additionally, SMBs will opt for proactive supply chain management and diversification strategies to minimize disruptions and exploit growth opportunities.

Here are Techaisle’s top 10 SMB and Midmarket predictions for 2024.

They are here - Techaisle's annual SMB and Midmarket Top 10 IT Priorities, IT Challenges, and Business Issues infographics, 13th year of Techaisle tracking at a WW level, and is sought after by IT vendors, channel partners, and media. Techaisle surveyed over 5000 SMBs, quota sampled to ensure adequate coverage of four small businesses (1-9, 10-19, 20-49, and 50-99 employees), three midmarket (100-249, 250-499, and 500-999 employees) and two upper midmarket (1000-2499, 2500-4999) segments. As a result, the data represents a robust and reliable sampling of the market segment for IT products and services.

Significant changes in 2023 as compared to 2022 are:

• Driving innovation and managing uncertainty, absent in 2022, are among the top 10 business issues in 2023.
• Deploying customer experience solutions as an IT priority has moved to 4th place as compared to 9th in 2022. CCaaS is considered an integral component of customer experience solutions.
• Implementing employee experience platforms and 5G-enabled devices/applications are new IT priorities within the top 10 list. UCaaS is one of the technology areas being investigated by SMBs.
• Adopting collaboration technology solutions has move down from 3rd rank to 8th and hybrid workplace solutions as a priority ranks 10th as compared to 5th in 2022
• Budget constraint has been a constant IT challenge fixture for over a decade. For 2023, it has been replaced by cloud cost management. Cloud optimization and cost management are the top IT challenges for SMBs, Core-Midmarket, and Upper Midmarket firms.
• Preventing Cyberattacks, adopting Zero Trust, and moving to as-a-service technology acquisition for new IT challenges are among the top five.
• Sustainability is increasingly becoming relevant and essential for the SMB segment, and there is no surprise that it is among the top challenges.
• Integration, business process automation is now non-optional and a challenge, which is worsened because of the inability to find trained employees

Straight after Windows 11, Microsoft announced a new service that allows business users to access cloud PC from anywhere. Microsoft Cloud PC, Windows 365 will be available from August 2, 2021, for businesses of all sizes. Any modern browser can be the desktop environment, and any device can be the workspace. As per Microsoft - Windows 365 is a cloud service that introduces a new way to experience Windows 10 or Windows 11 (when it’s generally available later this calendar year) for workers from interns and contractors to software developers and industrial designers. Windows 365 takes the operating system to the Microsoft Cloud, securely streaming the full Windows experience—including all apps, data, and settings—to personal or corporate devices. This approach creates an entirely new personal computing category, specifically for the hybrid world: the Cloud PC.

Techaisle data suggests that SMB and midmarket buyers will appreciate its portability, native access to web-based resources, its innovative approach to security, access to Microsoft Office personal productivity solutions, namely M365, and the ability to add to Azure Active Directory. Data from a survey conducted by Techaisle in the US shows that 5% of very small businesses, 10% of small businesses, 16% of core midmarket firms, and 32% of upper midmarket organizations may adopt Cloud PC. These are fascinating data points, which may well change with additional information and user experiences. Information/Media and Professional business services verticals have shown a higher intent for adoption than other verticals.