Why SMBs Put Security First When Powering Up Their Technology Stacks

SMBs are embracing advancements in technology to achieve more with a leaner staff, enable remote work, automate manual processes, and reduce errors. When implemented thoughtfully, technology can help smaller businesses better compete with their enterprise counterparts, save on increasing labor costs, and generate a robust ROI.

IDC’s data clearly illustrates this trend. According to IDC’s Worldwide Small and Medium Business Survey (February 2025), 81.8% of all SMBs will increase their tech budgets over the next year. Furthermore, a smaller percentage of SMBs plan to cut technology spending this year (1.7%, compared to 4% in 2024 and 8% in 2023), reflecting SMBs’ growing confidence in technologies like AI/automation as more use cases emerge. It also highlights the efforts of vendors offering more SMB-specific technologies and bundles that are affordable and easy to deploy and manage. Easy installation, maintenance, and use are paramount for small and medium businesses, as 36% of SMBs do not have any full-time, in-house IT employees. A significant 85.5% of small businesses (those with 1-99 employees) with a full-time IT employee only have one, compared to 40.9% last year.

A top technology area experiencing significant investment growth among SMBs is AI. Indeed, 47.5% of all SMBs say that traditional AI is a top investment priority for them in the next 12 months-a more than 12 percentage point increase from 35.1% a year earlier. Additionally, 45% list GenAI as a top priority, compared to 32.8% a year earlier. SMBs are also investing steadily in mobile worker support, a trend that has continued since the pandemic-era transformation of office culture. In 2025, 52.8% of small businesses report prioritizing investments in communications through video collaboration or video conferencing, versus 43.7% last year. Small businesses are seeking to upgrade to the latest video and collaboration tools that boost security and incorporate new technologies, such as AI, to enhance efficiency. Many SMBs want to allow their employees to work remotely, as they often cannot afford to pay as much as larger organizations. Consequently, they are developing creative ways to retain top employees by offering flexible working hours and the ability to work remotely or in a hybrid manner.

However, IDC’s data strongly illustrates that SMBs are taking a security-first approach to technology investments. Before investing in a new system or solution, they ensure it is secure. As SMBs have few, if any, IT employees to manage cybersecurity threats, they depend on technology providers to implement robust security measures. Increasing security is both a top investment priority and a top challenge for SMBs; 51.3% of SMBs said that increasing security is a top investment priority for them in the coming year. Simultaneously, 46.4% list implementing new technology securely as a top challenge to achieving their business priorities-the number one response from a list of ten different options.

There are several contributors to this intense focus on security. One is the shift to the cloud from on-premises solutions. While the cloud offers great benefits, such as accessibility from anywhere, pay-as-you-go pricing, and unlimited storage capacity, it also means that SMBs’ remote or hybrid workers are accessing business-critical networks from personal devices using public Wi-Fi-think restaurants, coffee shops, airports, and more. Another shift is the increase in AI investments. AI relies on a continuous flow of data to function. SMBs are demanding clarity on the source of the data used to train large language models. Is it the vendor’s data, the SMB’s data, or synthetic data? How is that data being used, and what protocols are in place to ensure security? Many SMBs are just beginning to build brand awareness, consumer trust, and revenue. A data breach that tarnishes their image could be catastrophic.

With great technological advancements come great responsibilities. While technology is rapidly evolving to help SMBs keep up with their swift pace of growth, automate processes, enable remote work, and more, its primary role is to be secure.

Message from the Sponsor

SMBs need greater security in the AI era. By embedding security into our entire portfolio, Cisco helps SMB customers focus on running and growing their business instead of increasing the size of their IT team. Partner with Cisco to seize the opportunity in the SMB segment and protect customers with security and networking products.

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