Techaisle Blog

A recent update from CrowdStrike caused a widespread outage, termed the largest in history. The IT outage highlighted the vulnerability of SMBs to large-scale tech outages and their dependence on third-party IT services. It also underscored the need for better preparedness and potentially more diverse IT ecosystems to mitigate such risks in the future. Cybercrime is predicted to cost $14.57 trillion globally in 2024, and it would be the world's third-largest economy after the US and China. This underlines the importance of robust cybersecurity. The incident raises a concerning question: what happens when the guardians become the source of disruption? The CrowdStrike-related outage was not caused by a cyberattack, but rather by a defect in a software update, highlighting the importance of operational resilience beyond just cybersecurity measures. Analysts estimate the global cost of this outage to be as high as $24 billion as of now.

Uneven Recovery for SMBs

A Techaisle survey of 600 small businesses indicates that 34% expect customer reputation damage and 23% anticipate significant bottom-line impacts due to operational challenges. Logistics complications from inventory management to shipment tracking caused business friction. Communication issues with clients, suppliers, and staff led to delays and missed opportunities, while financial activities like processing payments and managing invoices suffered. Some businesses also faced customer service obstacles, leading to customer dissatisfaction and reputational harm.

The recent CrowdStrike outage has highlighted the essential need for dependable tech in today’s businesses and the severe impact that short downtimes can have, especially on SMBs. It's a stark reminder of the importance of solid IT frameworks and contingency planning. Small businesses suffer disproportionally during such outages due to leaner cyber defenses and limited personnel, which are significant hurdles when crises strike. The manual resolution required here spotlighted these weaknesses. Small IT teams, typically stretched thin with various duties, found it tough to manage the fix across several devices, leading to overtime work to fix crucial operations.

Techaisle's study on SMB and Midmarket Security Adoption Trends projects that IT security spending by small and mid-sized businesses worldwide is expected to reach US$90 billion in 2024, showing a 9.4% increase from the previous year. In the US alone, the market expenditure is set to rise by 8.3%. Significant investments will concentrate on Endpoint Protection, Network Security, and Identity and Access Management, with MDR (Manage, Detect, Respond) services seeing the most rapid growth in the SMB and midmarket sectors.

A significant increase in funding for IT security is projected among high-growth SMBs. Notably, 21% of rapidly growing small and medium-sized enterprises (SMBs) and 26% of mid-sized companies are forecasting a minimum growth of 15% in their IT security budgets for 2024. Highly innovative organizations are committed to improving security measures as well, with 18% of SMBs and 21% of midmarket companies planning to boost their spending by 12% compared to the previous year.

Techaisle's data also reveals a concerning cybersecurity preparedness gap among small and medium-sized businesses, with 42% having no cyber incident response plan. Despite nearly half experiencing security breaches, often going unnoticed, only 40% are confident in their recovery capabilities, likely downplaying the risks. These cyberattacks come at a high cost, with SMBs' average annual losses reaching $1.4 million. Contributing to this issue is the fact that 46% of these businesses lack formal risk assessment methods, indicating a serious underestimation of online threats.

Addressing SMB and Midmarket security issues can be done through various lenses. Segmenting security adoption into four categories—Prevent & Protect, Detect & Respond, Adapt & Comply, Restore & Recover—provides an understanding of preferred solutions and areas poised for growth. This framework helps clarify how these companies prioritize and distribute funds for cybersecurity strategies.

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.

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.