2024 SMB Tech Trends: What IT Service Providers Need to Know
2024 SMB Tech Trends: What IT Service Providers Need to Know
Small and medium-sized businesses (SMBs) are evolving fast—and so are their technology needs. TSL Marketing’s 2024 SMB Technology Survey, which gathered insights from over 760 business leaders, reveals how SMBs are adopting AI, navigating hybrid work, choosing IT partners, and prioritizing security. Here’s what IT service providers need to know to stay ahead.
AI Adoption: Early Curiosity, Limited Roadmaps
Artificial intelligence—especially generative AI—is a hot topic, but most SMBs are still figuring out how to use it effectively.
- Larger SMBs (501–1,000 employees) are more than twice as likely to have achieved some level of AI maturity compared to smaller ones.
- Many smaller companies (50–500 employees) haven’t found suitable AI use cases yet.
- Only a small percentage of all SMBs have a detailed AI roadmap.
Opportunity for MSPs: Position your firm as an AI guide. Help SMBs:
- Identify practical AI use cases
- Build roadmaps
- Implement AI-assisted automation
Remote Work: Hybrid Is Here to Stay
Despite predictions that remote work would fade post-pandemic, hybrid models are thriving.
- 35% of SMBs have a hybrid setup (some in-office, some remote)
- 32% have most employees in-office
- 22% have less than half in-office
- 11% are mostly remote
By company size:
- Smaller SMBs lean more remote
- Larger SMBs favor hybrid or in-office setups
By industry:
- Utilities (68%), Materials (59%), and Industrial (48%) favor hybrid
- Communications and Retail lean heavily in-office (42%)
MSP Tip: Tailor your hybrid work solutions by company size and industry. One size doesn’t fit all.
What SMBs Want from IT Service Providers
Cost is king—but it’s not the only thing.
Top Priorities:
- 54% want to decrease costs
- 44% want improved responsiveness
- 43% want more proactive service
- 41% want better technical expertise
What this means for MSPs:
- Emphasize affordability and speed
- Highlight your ability to prevent issues before they arise
- Promote local support capabilities
- Showcase specialized expertise (e.g., cybersecurity)
Rethinking Industry Labels
Many SMBs don’t fit neatly into traditional industry categories.
While many respondents identified with sectors like IT, Healthcare, and Financials, 177 companies selected “Other,” representing a wide range of industries including:
- EdTech, SaaS, Cybersecurity
- Hospitality, Logistics, Biotech
- Legal Services, Venture Capital, Virtual Events
Marketing Insight: Expand your industry targeting. Use customer data to uncover niche verticals and tailor campaigns with case studies and industry-specific content.
Application Providers: Microsoft Dominates
When it comes to business apps, Microsoft is the clear favorite.
- 87% use Microsoft 365
- 76% use Microsoft Teams
- Salesforce leads CRM tools, followed by HubSpot
- Google Workspace and Slack also have strong adoption
MSP Strategy:
- Focus on Microsoft-related services
- Offer support for collaboration tools
- Highlight integration and security expertise
Infrastructure Providers: Cisco, VMware, and Dell/EMC Lead
Infrastructure choices vary by company size, but some names stand out.
- Cisco is the most used provider overall
- VMware and Dell/EMC follow closely
- Larger SMBs are more likely to use multiple infrastructure vendors
MSP Takeaway: Promote your partnerships and certifications with top vendors. Target larger SMBs with more complex infrastructure needs.
Cloud Providers: Azure and AWS Dominate
Cloud adoption is nearly universal among SMBs.
- Microsoft Azure is the top cloud provider
- AWS is a strong second
- Google Cloud has a respectable share
- IBM Cloud and others trail behind
MSP Opportunity:
- Emphasize your cloud migration, security, and app development services
- Highlight your expertise with Azure and AWS
Security: Ransomware Tops the List
Cybersecurity is the number one investment priority for SMBs in 2024.
Top Concerns:
- 54% worry about ransomware
- 38% cite employee negligence
- 37% fear data breaches
Planned Investments:
- Cybersecurity overall
- Endpoint/device security
- Identity and Access Management (IAM)
- Email threat defense
MSP Focus: Build offerings around ransomware prevention, IAM, and endpoint/email security. SMBs are looking for partners who can fill their internal security gaps.
Final Thoughts
The 2024 TSL SMB Technology Survey paints a clear picture: SMBs are eager to modernize but need guidance. Whether it’s AI, hybrid work, infrastructure, or security, MSPs have a major opportunity to lead the way.
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