Techaisle Blog

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.

Techaisle's latest research forecasts worldwide small business (1-99 employees), core midmarket (100-999 employees), and upper midmarket (1000-5000 employees) IT spend (excluding telecom services) will reach US$1.25 trillion in 2022. IT services will see the highest proportion of IT spending. Datacenter solutions will exhibit a growth of 4%. Overall worldwide cloud spending within the SMB and midmarket will grow by 21%. By 2025, 43% of global SMB and midmarket IT spending will be in the cloud.

SMB IT investment is increasing to counter inflation, labor shortage, supply chain concerns and accelerate business transformation through digitalization. SMBs are looking for ways to streamline business and IT processes to best return on existing human capital. In the pursuit of greater efficiency, SMBs are also exploring options that help stretch budgets and use efficiency-oriented techniques to optimize the impact of wage inflation and the increasingly competitive landscape. SMBs plan to invest in PCs, analytics, cloud, security, UCaaS / CCaaS, customer experience solutions, and networking.

They are here - Techaisle's annual SMB and Midmarket Top 10 IT Priorities, IT Challenges, and Business Issues infographics, 12th year of Techaisle tracking at a WW level, and is sought after by IT vendors, channel partners, and media. Techaisle surveyed a total of 5850 SMBs, quota sampled to ensure adequate coverage of four small business (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.

Compared to previous years, for 2022, Techaisle expanded the lists of the technology areas, business, and IT challenges studied. In addition, this year, we have also added a fourth column in the infographic – Highest Planned Adoption.

Please scroll down/read more to view and download the SMB, core Midmarket, and Upper Midmarket infographics.

In all sectors, the last two years were tough – and as a result, 2022 is challenging from a market planning perspective. As we enter 2022, IT product and service suppliers are looking to create a context for understanding the range of outcomes that the new year may bring. Techaisle is launching its "2022 in Focus" research series to support that effort, which illuminates issues and requirements in the vast SMB and midmarket segments. To begin with, here are our top 10 (and additional 3) predictions for 2022. After surveying thousands of SMBs and midmarket firms, having hundreds of depth calls, we identified over thirty trends. After that, we systematically prioritized ten predictions for your consumption.

We look forward to working with you in the year(s) to develop fact-based perspectives on the issues that shape the success of the IT industry.