IDC FutureScape: Worldwide Small and Medium-Sized Business 2025 Predictions
This IDC study presents IDC's top 10 predictions for small and medium-sized businesses (SMBs) for 2025 and beyond. IDC defines small businesses as those with 1-99 employees and medium-sized businesses as those with 100-999 employees."This IDC FutureScape examines 10 key future technology trends for SMBs over the next five years. It offers perspective backed by data to help SMBs cultivate their IT strategies and unveils new tools, technologies, and tactics to help SMBs better compete," says Katie Evans, senior director, Worldwide Small and Medium Business Markets for IDC. "From fresh AI strategies to seeking out vendors with specific SMB solutions to exposing the benefits of hybrid cloud, this year's IDC FutureScape for worldwide SMB provides a strategic IT glimpse into the future for tomorrow's SMB leaders."
IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2025, 70% of SMBs Will Demand Clear Use Cases from Vendors or Managed Service Providers Marketing AI Capabilities Before They Invest In and Implement New AI/GenAI Technologies
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2027, 50% of SMBs Will Significantly Adjust Their IT Budgets to Factor In AI as the Technology Improves, Vendors Solidify Their AI Pricing Strategies, and AI Becomes Essential to Compete
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2026, 70% of Medium-Sized Companies Will Accelerate Investments in Digital Platforms for a Majority of Functions to Streamline Operations, Improve Efficiency, and Enhance the Customer Experience
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2028, 70% of SMBs Will Boost Investments in Hybrid Cloud Due to Rising Security Demands, Including Enhanced Data Protection, Regulatory Compliance, and Support for Remote Work Environments
Associated Drivers
IT Impact
Guidance
Prediction 5: During 2025, 30% of SMBs Will Refocus Their Sustainability Positioning to Concentrate on Initiatives That Provide Tangible Business Benefits and Demonstrable Cost Efficiencies
Associated Drivers
IT Impact
Guidance
Prediction 6: During 2025, 50% of SMBs Will Prioritize Tactical AI Use Cases and Investments That Break the Correlation Between Business Expansion and Head Count Growth and Help Them Mitigate Internal Skills Shortages
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2026, 70% of AI-as-a-Service Technology Vendors Will Provide Dedicated SMB Solutions with Pretrained Models, Limiting Their Need for Heavy Investments in Dedicated Infrastructure
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2028, 65% of SMBs Will Develop and Manage Digital Business Models as Part of Their Business Corporate Strategy to Create New Revenue Streams and Enable Sustained Growth
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2027, Due to an Increase in Cyberattacks, 60% of SMBs Will Deploy Sophisticated, AI-Enabled Cybersecurity Solutions, Including Endpoint and Network Security Solutions
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2027, 60% of SMBs Will Be Investing In Connectivity Technologies That Incorporate AI to Increase Automation of the Network, Accelerate Planning, Improve Experiences, and Optimize Network Security
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
AI-Driven Business Models — Moving from AI Experimentation to Monetization
The Drive to Automate — Toward a Data-Driven Future
AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today
Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape
Expanding Digital Security Frontiers — Fortification Against Multiplying Threats
Geoeconomic Reordering — Rethinking Globalization, Supply Chains, and Macroeconomic Challenges
Customer Experience Squared — Consumer and Citizen Expectations for Digital Services
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