Techaisle Blog

AI is rapidly transforming the business world, and its impact extends beyond the realm of large enterprises. Small and medium-sized businesses (SMBs) and midmarket firms are increasingly looking to leverage AI to gain a competitive edge. One key area where this is becoming evident is in the adoption of AI PCs. A recent Techaisle survey sheds light on the early adopters of AI PCs within this market segment. The findings reveal a diverse range of professionals eager to harness the power of AI to enhance their productivity and efficiency.

The early adopters of AI PCs within small and medium-sized businesses (SMBs) and midmarket firms represent a diverse array of professionals. This group includes IT decision-makers, C-suite executives, engineers, data scientists, business analysts, executives and managers, and content creators. These individuals recognize the transformative potential of AI and are keen to harness its capabilities to increase productivity and drive innovation. As the adoption of AI PCs continues to grow, organizations must offer their employees the necessary support and guidance to utilize this technology effectively. By doing so, they can fully unlock AI's potential and secure a significant competitive edge in the forthcoming years. The early adopters of AI PCs are leading the way toward a future where AI is seamlessly integrated into the workplace. By embracing and using this technology proficiently, SMBs and midmarket firms can achieve a considerable competitive advantage and flourish in the digital era.

IT Departments: The Vanguard of AI PC Adoption

Unsurprisingly, IT departments are leading the charge in AI PC adoption, with a remarkable 77% of IT decision-makers within SMBs and midmarket firms embracing this technology. This early adoption can be attributed to several factors. IT professionals are well-versed in emerging technologies and understand the transformative potential of AI. They also play a crucial role in evaluating and implementing new technologies within their organizations, making them natural early adopters of AI PCs. Furthermore, IT departments are responsible for ensuring the smooth integration and management of AI PCs across the organization. By proactively adopting these devices, IT professionals can gain valuable experience and insights into their deployment, maintenance, and security. This knowledge will be invaluable as AI PC adoption expands within the organization.

Techaisle has released its annual infographics detailing the Top 10 IT Priorities, Challenges, and Business Issues for SMBs, Core Midmarket, and Upper Midmarket firms. In its 15th year of global tracking, Techaisle surveyed over 5000 businesses across various employee segments to provide a comprehensive overview of the IT market. The survey reveals key business goals, technology priorities, and IT challenges for the upcoming year, offering invaluable insights to IT vendors, channel partners, and media.

Business Issues

In 2025, Small and Medium-sized Businesses (SMBs) will encounter several significant challenges. Attracting and retaining top talent will be crucial, necessitating adaptation to technological advancements. This effort extends beyond recruitment, encompassing the attraction of skilled workers in a competitive market that demands remote work options, flexibility, and competitive benefits. It is not merely about reducing IT costs but strategically integrating new technologies such as AI and automation to enhance efficiency, customer service, and potentially product or service offerings.

Financial resilience will require meticulous financial management and risk mitigation strategies. With increasing reliance on digital tools and data, robust security measures and compliance with evolving regulations will be essential to address data security and privacy concerns. Protecting sensitive information from cyber threats will be paramount.

Meeting customer expectations will demand a focus on personalized experiences and omnichannel engagement, where customers anticipate seamless interactions both online and offline. Additionally, there will be an expectation for more sustainable and ethical business practices. Innovation and differentiation will be imperative to remain competitive, necessitating a culture of experimentation and unique offerings.

Reaching target audiences in a fragmented digital landscape will require sophisticated marketing and sales strategies. Digital marketing and sales optimization will be critical for engaging customers effectively. Building resilient supply chains will help mitigate disruptions and ensure business continuity. Compliance with regulatory requirements will be necessary to avoid penalties and maintain a positive reputation. Finally, integrating sustainability and social impact into business practices will be important for attracting and retaining both customers and investors.

Technology Priorities

Technology will be essential in overcoming the challenges facing SMBs. Advanced AI and automation will streamline operations and enhance efficiency. Beyond basic AI assessment, SMBs will explore more sophisticated applications, such as automating complex business processes using AI and machine learning. They will leverage AI to deliver personalized customer experiences and recommendations. Furthermore, predictive analytics will empower SMBs to forecast trends and make data-driven decisions.

Conventional wisdom suggests that large enterprises spearhead technological adoption, with smaller businesses lagging. However, small and medium-sized businesses (SMBs) leverage their agility and propensity for experimentation to overcome challenges that often hinder larger organizations. As generative AI becomes more accessible, SMBs will likely emerge as innovators rather than passive followers in the technological arena.

Despite enduring challenges such as limited capital and technical expertise, the decreasing cost of AI tools and cloud services presents new opportunities. These developments enable smaller firms to compete more effectively in areas traditionally dominated by larger corporations.

As analysts, we are keen to explore these trends and assist businesses in anticipating future developments. This article outlines key predictions for 2025, highlighting the opportunities and challenges that await SMBs and midmarket firms.

IBM and Microsoft have an established and successful strategic partnership, marked by significant collaborations like ARO (Azure Red Hat OpenShift). In 2021, the general availability of Red Hat OpenShift on Azure evolved into Azure Managed OpenShift on Azure. In 2023, IBM achieved Partner of the Year recognition with over 13 accreditations across the Microsoft portfolio and seven in 2024.

ARO has been a cornerstone of this partnership, offering businesses a comprehensive hybrid cloud solution that seamlessly integrates Azure services with Red Hat OpenShift. This partnership has also driven IBM’s expansion on the Azure cloud marketplace, where IBM’s technology offerings have gained substantial traction.

In a significant initiative to enhance their long-standing relationship, IBM and Microsoft are expanding the partnership by bringing additional IBM solutions to businesses through the Azure Marketplace. This strategic move aims to provide businesses with a more streamlined and integrated experience, allowing them to access a broader range of IBM software and services directly within the Azure ecosystem.

Both IBM and Microsoft stand to benefit from this partnership, as Techaisle’s research indicates a growing momentum towards Azure Marketplace. 47% of businesses consider it to be secure, 45% find it well-understood, 44% utilize it due to its extensive footprint, and 41% perceive it as a mature platform. These positive perceptions highlight Azure Marketplace’s increasing appeal to businesses seeking reliable, comprehensive cloud solutions.

Expanding IBM's Offerings on Azure Marketplace: A Strategic Partnership

There are few absolute certainties in technology – but one subject that is beyond debate is that the cloud has permanently changed how technology is deployed and consumed within businesses, and AI is the latest disruptive technology. We know that AI is everywhere, but having arrived in a hurry, the changes made in response to its adoption will not leave abruptly.

Techaisle research shows that 72% of SMBs, 97% of midmarket firms, and 100% of enterprises believe technology is critical to business success. However, IT efficiency can be challenging to achieve. As the business pressures increase, the greater is the need for automation and orchestration. Business unit leaders seek inputs from IT to help achieve business goals. In straightforward terms, in 86% of firms, IT is expected to do more and is even seen as a source of innovation. In 79% of firms, IT is expected to deliver business outcomes faster. However, 80% of IT’s time is spent on support and maintenance; in 65% of organizations, IT is left with little time for innovation.

One of the key highlights of this expanded partnership is the introduction of Apptio Technology Business Management (TBM) software to the Azure Marketplace. Apptio, an IBM company, is recognized as a market leader in TBM and FinOps. It empowers organizations to make data-driven technology investment decisions and optimize costs across cloud and on-premise environments.

The roll-out of Apptio's product suite on Azure Marketplace will occur in phases, beginning with IBM Targetprocess on October 29^th, 2024. Targetprocess is an Enterprise Agile Planning (EAP) software that integrates with Azure DevOps, facilitating better budget planning and management across diverse technology environments. IBM also plans to bring its flagship IT financial management solution, IBM Apptio Costing and Planning, to the Azure Marketplace in the first quarter of 2025. These initiatives highlight a commitment from both IBM and Microsoft to provide businesses with a comprehensive suite of solutions to manage and optimize their technology investments within the Azure cloud platform.