Techaisle Blog

The cybersecurity landscape is undergoing a significant shift, driven by a surge in spending across all business segments. According to Techaisle SMB and Midmarket Security Adoption Trends research, the combined IT security spending (excluding managed security services) for global SMBs and Midmarket companies is projected to reach a staggering US$90 billion in 2024, reflecting a healthy 9.4% increase from 2023. This data paints a clear picture: businesses of all sizes are prioritizing cybersecurity and investing heavily in defense mechanisms.

Interestingly, the growth in spending is not uniform across the board. The most significant increases are anticipated from high-growth, highly innovative companies. A striking 21% of high-growth SMBs and 26% of high-growth midmarket firms are expected to bolster their IT security budgets by at least 15% in 2024. These figures underscore these companies' unique challenges and the need for tailored cybersecurity strategies. Very innovative businesses are also demonstrating a strong commitment to security, with 18% of SMBs and 21% of midmarket companies in this category planning to increase their spending by 12% compared to the previous year.

At the core of an SMB's resilience lies cyber resilience, the nexus that links cybersecurity, business continuity, and overall preparedness. It's not just about defense; it's about bouncing back from any crisis, whether a cyberattack, natural disaster, or economic downturn. Cyber resilience ensures operations continue smoothly even in turbulent times by encompassing prevention, response, and recovery. This comprehensive approach not only ensures business continuity and protects sensitive data but also plays a pivotal role in fostering customer trust. Techaisle survey data reveals that 35% of SMBs and 46% of upper midmarket firms view the shift from cybersecurity to cyber resiliency as not just important but crucial.

Security matters to SMBs and midmarket firms - a LOT. Technology is essential to productivity, growth, and profitability – but it exposes SMBs to potentially devastating security breaches. But cybersecurity is a daunting challenge. Technology is so complex, and the threat sources are so menacing that many SMBs practice “security through obscurity:” They hope that attacks will be pointed at larger targets and that they can find safety by keeping a low profile.

The world of cybersecurity is a constantly evolving battleground. Gone are the days of lone hackers targeting specific networks. Today, criminal organizations cast wide nets, hoping to exploit vulnerabilities in increasingly connected devices, from printers to smart TVs. Unfortunately, there are enough hackers, scammers, and cybercriminals to go around – and every conscientious SMB needs to address security threats as they take action to safeguard their businesses against other threats (loss of customer trust, compliance with applicable laws and regulations, loss of financial solvency) to their businesses.  

This complex landscape demands a security strategy that goes beyond just protecting networks. As digital technologies continue to advance, businesses of all sizes, especially small and medium-sized businesses (SMBs), face a constant threat of cyber-attacks.

Xerox understands this vulnerability and offers a comprehensive, personalized approach to workplace security that goes beyond a one-size-fits-all solution. This commitment to risk management stems from Xerox's long history in highly regulated industries. Its secure printing solutions, developed for environments like Navy ships, translate into robust security features for businesses of all sizes.

In an era of globalization, businesses often pursue economies of scale and standardized solutions. Zoho, a global software behemoth with Indian origins, is carving a distinctive path. It has embraced a unique business strategy known as “transnational localism.” This approach intertwines global connectivity and local grounding, fostering local economies while partaking in the exchange of knowledge and culture. Transnational localism, as defined by Zoho, is a decentralized strategy that harnesses the benefits of a global scale while maintaining deep roots in local communities. It transcends the conventional “think global, act local” mantra, offering a more nuanced and influential method to tackle today’s complexities. This strategy is implemented through a tripartite approach:

• Developing a Global Technology Stack: Zoho creates its software products suite, ensuring total control and adaptability.
• Empowering Local Teams: Zoho sets up regional offices staffed with local talent, enabling them to tailor solutions to specific market requirements.
• Prioritizing Local Communities: Zoho invests in local talent development, infrastructure, and social initiatives, nurturing a sense of collective responsibility and growth.

Transnational localism strikes a balance between global outreach and local engagement. It involves establishing offices in less affluent locations globally, injecting investment, expenditure, and job creation into these areas. The company stays globally connected, not just digitally, but also through a shared ethos and culture, while remaining locally anchored.

Zoho’s CEO, Sridhar Vembu, characterizes transnational localism as a strategy that sources talent from regions often neglected by other companies. These are typically areas experiencing talent emigration, leading to hollow communities. Zoho strives to reintroduce opportunities into these regions, commonly drained into urban centers.

Beyond the Numbers: Real-World Examples

Zoho’s dedication to transnational localism extends beyond mere theory. It has actualized this philosophy by setting up a global network of over 25 offices in rural areas. Many IT suppliers overlook these locations for opportunities compared to their metropolitan counterparts. For instance, Zoho has an office in McAllen, Texas, with nearly 150,000 residents within a metropolitan area housing over a million people.

Another notable instance is Tenkasi in India, where Zoho inaugurated its first rural office. Despite being a city of nearly 100,000 people, Tenkasi is considered rural compared to India’s major metropolitan areas. In Tenkasi, Zoho operates a remote farm and an elementary school, both flagship initiatives in its rural revival strategy.

Zoho demonstrates its commitment to social responsibility in several ways. It has invested in rural India through its "10,000 Schools" program, which bridges the digital divide by providing digital infrastructure and training to schools. Additionally, Zoho empowers local communities by establishing offices in smaller towns across the US and Europe, fostering diversity and creating local job opportunities. Finally, Zoho tailors its product suite to specific market needs, showcasing its commitment to global inclusivity by respecting cultural and regulatory contexts.

The Impact on Zoho's Business: A Multi-Faceted Success Story

Transnational localism has significantly influenced Zoho’s business, propelling its remarkable growth. By the end of 2021, Zoho had amassed 500,000 customers, over 70 million users, and 40,000 customers on Zoho One, a product launched in 2017. One of these customers had 32,000 employees utilizing Zoho One. Fast-forwarding to 2024, Zoho’s customer base has expanded to over 750,000, with over 100 million users across 150+ countries.

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.