Investing in technology to boost efficiency
The COVID-19 pandemic caused a shift in organizational mindsets, with companies embracing technology more keenly than ever before. This trend continues as companies are now looking to software and hardware solutions to achieve a wide range of goals, from cost savings to better teamwork to improved efficiency.
As they grapple with challenging economic conditions, small and medium-sized businesses (SMEs) continue to actively invest in technology solutions. They do this to stay agile and competitive, to boost productivity, accelerate innovation and discover new business opportunities – but also to simplify the way they work every day.
Looking for better business results
When lockdowns began and companies suddenly had to transition to working from home, remote collaboration platforms like Teams and Zoom took center stage. They have completely changed the way we work. Having experienced this change and the benefits that came with it, organizations are now looking to adopt technology to transform other business areas as well – such as finance, marketing or human resources.
Moreover, after the pandemic, the budgets of many organizations are no longer as well defined as before. The technology budget is no longer the sole domain of the IT department. Instead, demands for IT and technology are emerging in all areas of business, as evidenced by current purchasing trends. And just like the rise of collaboration platforms, teams across departments and functions are looking for tools that can make a real difference.
These solutions and applications don’t necessarily have to be complex: there are opportunities for improvement in virtually every business area. For example, technology can automate labor-intensive and monotonous manual tasks such as documentation, expense reconciliation, or calendar management. Such tools are readily available online and can free up valuable time in resource-constrained teams.
At the other end of the spectrum, small and medium-sized businesses are beginning to consider full-fledged Enterprise Resource Planning (ERP) solutions such as SAP Business One. These solutions, with their ability to adapt depending on individual business requirements, are increasingly replacing traditional SME accounting platforms such as Sage.
Kaseya, vice president of business development EMEA.
Companies spend more on outsourcing
In addition to investing in new technologies, SMBs are spending more on consulting costs as many of them turn to Managed Service Providers (MSPs) to help them define and achieve their digital transformation goals. They need expert support to adapt and implement new solutions, and to find ways to better use their existing tools. Of the features available in any software solution, a large percentage remains unused. For SMEs, understanding and utilizing the full capabilities of their existing solutions can significantly improve work processes.
Cloud infrastructure-as-a-service and software-as-a-service are growing 30 to 40 percent every quarter, and organizations are spending money on consulting and management costs associated with this technology investment. Today, almost a third of SMEs outsource all or part of their IT; As the digitalization trend continues, this percentage is likely to increase.
Investment in safety
As businesses become increasingly aware of ever-evolving cyber risks, cybersecurity is another area seeing increasing investment from SMEs. Analysys Mason predicts that the global SMB market would spend $77 billion on security solutions by 2023.
A security breach can cause significant damage to a small business, and research Kaseya published earlier this year shows just how concerned businesses are. More than half of the nearly 3,000 SMBs surveyed for the State of Ransomware Report said a successful attack would seriously impact their organization – with some worrying it could even be a fatal blow.
In line with this, four in ten respondents say their organization is currently increasing cybersecurity spending. Many SMBs receive external support: one in four outsources their security to an MSP and one in six to a managed security service provider (MSSP). They also invest in enhanced security services, including two-factor authentication, dark web monitoring, penetration testing and security awareness training. All of these areas have seen growth over the past twelve months.
A growth opportunity for managed service providers
Today’s technology needs for small businesses translate into growth opportunities for MSPs. Managed service providers are hiring new staff and investing more in sales and marketing to attract new SMB customers – and most importantly, they are tailoring to their customers’ needs.
Additionally, they too are using technology to increase productivity by automating daily tasks such as processing helpdesk tickets or onboarding new customers. The integration between their core tools has helped MSPs streamline operations and improve service delivery – a key success factor because the speed and accuracy with which a provider resolves a customer’s problem is a key differentiator in a competitive market.
The MSP industry has seen continued growth during the pandemic, solving the technology needs of their small and medium customers. Despite uncertain times, the outlook in this market remains positive: with the help of their MSP partners, small and medium-sized businesses can implement technology solutions where they make a tangible difference, prepare for future challenges and ultimately strengthen their business.
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