Where are businesses spending their pretty penny these days? Enterprises, SMBs alike have successfully hopped on the current technology bandwagon. As technology keeps advancing forth, it is changing the business ecosystem. When we say infrastructure, it roughly translates to a new technology adopted by business for a great ROI. Disruptors, advancements, up gradations, there are many ways we see the digital world seamlessly merging with the business world.
44% businesses worldwide will increase their tech spending in 2020 according to Comptia. Amidst stiff competition and in the bid to match steps with the honchos, more SMBs will spend on new technology. This trend has continued since 2018, where a mammoth 602 million was spread across various tech investments by them. SMBs consider tech investments imperative to attaining their growth potential. Why are companies investing in IT? What are they buying? What tech trends are slated to pounce announced and change the fabric of how people do business? Which Industries are forerunners of IT advancement?
The “Why” of Bigger IT Budgets
The expanding IT budget of SMBs has been attributed to various factors. Top ranked among them is the need to upgrade from an existing or obsolete system. With newer and more refined variety of every software available, today the SMB buyer knows that in order to optimize operations outdated and bare minimum will not do. Software for every task are laden with sophisticated features and tools that are made to suit different types of business needs. It’s a matter of planning, picking and choosing.
The end of the decade lashed out some fresh security troubles, creating a frenzy among all IT users. Big names like Microsoft and Facebook were affected with brick loads of customer data exposed.
Security expenditure has become more central to IT investment than ever before. As a result, close to 46% of SMB purchase budget will be dedicated to high level security software.
Another equally important aspect of buying decisions, is employee and performance enhancement. Digitizing businesses means, minimizing time, resources and maximizing outcome. Productivity is known to hit a high note, where business processes have been automated.
Other factors that inform IT financial allocation are increasing business revenue by incorporating technology that can have a direct impact on it, or tending to particular IT projects. There is also a definite sustainability undercurrent in making eco friendly choices. Companies are consciously building ethical undertones to their brand image.
The “What” of IT Purchases
Core Infrastructure, Hardware, Software, Cloud Services, Managed IT Services are the major constituents of IT purchases in SMBs. 2020 will witness SMBs investing big time on hardware and software. Hardware investment has seen a rise by more than 10% from 2018 to 2019.
Growing businesses are conjectured to spend on Managed IT Services. Cloud Services are gaining momentum with smaller businesses and are poised to see an increased adoption in 2020. Their budget provision will increase from 10% in 2019 to 14% in 2020.
For businesses, software on Cloud means better collaboration, smoother integrations, lower costs incurred on resources and easy installation. In a nutshell, this is a win- win situation for SMBs who may still be working on growing their business. Cloud services also means better security and a predefined infrastructure for procuring AI capabilities. Tapping in AI for businesses, irrespective of business size, has become a necessary for growth and sustainability.
This Cloud Era will metamorphose how SMBs understand and communicate with and through technology. Customer interface, experience and strengthening will be hinged on how SaaS, data tools, analytics, AI etc work together.
The “Who” of IT Buying
The world seems like it has been usurped by technology and all the urbane tools of communication and transaction it offers, but this is far from the case. Digitization may have impacted the majority of businesses, yet when seen the aggregate application and execution statistics, some industries and businesses have been quicker than others.
IT purchases are not uniform across industries. Some industries show a more natural inclination to tech implementation than others due to the very nature of their management and operations. However, almost all business through different verticals have witnessed some kind of technology evolution.
The Financial Services Industry is moving at a rapid pace as a receptacle of the most advanced apparatus of the day. Fintech has become an intrinsic part of the industry and many others, automating financial services. 2020 will have the industry move onward with more innovative ideas. IT services industry is similarly marching ahead. IT is leveraging millennial technologies like IoT, VR, Edge Computing and 5G to power its sonic progress. IT and finance frontrunners are working together to govern the latest innovations and embracing it.
Healthcare systems and approaches have changed phenomenally over the years. Medtech covers a gamut of things which has led to increased tech budgets to modernize their IT infrastructure. Clinical trials, medical research and practices and therapeutics have been impacted by the digital wave. Retail has transformed, as evidently visible through the growing number of people who shop online every day. Social commerce, sparked with more streamlined processes will play a key role in retail’s digitized ecosystem. Other industries that have taken the lead in transforming their management and systems are manufacturing, energy, logistics, agriculture and counting. Startups and SMBs are the main foster forces in propelling this shift forward.
The “Which” of Technology Trends
2020 is prepped up for a barge of contributions that have been developing for the past few years. AI, for instance, always been publicized for taking over the world by storm, was at a relatively nascent stage till recently. There will be more direct AI inclusion in businesses this year. Businesses will implement it to manage customer interaction, in product development and testing and customizing products and services.
Another fissure that will be worked extensively on is, giving AI an EQ (Emotional Quotient) to understand human mind and emotions better. This will consequently be an electric tool to decode consumer behavior.
More and more businesses are going for IoT, as it allows increased collaborations. IoT will continue to wrought 2020, assembling superior and bigger scale data and managing office infrastructure.
Technologies like Edge Computing that are driven by the growth of IoT, will experience a growth spurt in 2020. This may be especially relevant to SMBs. IDC forecasts that 45% of IoT (Internet of Things) produced data will be warehoused, managed, and implemented at the edge of networks. Edge Computing is believed to add value to factories, dispersal channels etc. for highly localized data processing.
With connectedness and pools of data in hand, 5G technology is said to give the much needed boost and agility needed for functionality at this scale. 5G will define the speed of the modern world in 2020. As per a report by PBS, 5G adoption by small businesses will impel business growth and democratize competition at a global level.
Concomitantly, breaking edge technologies like VR, Biometrics, Quantum Computing, Robotic Process Automation and 3D Printing are set to impact business decision making around the world.
The “Where” of Finding The Best Stack of IT Products & Services:
You are a business ready to invest in a technology, software or service but you don’t know where or how to make the choice among the millions of offerings in the market. This is often the greatest impediment for growing businesses. Technology or Service partners can make or break your business future. It is a bargain that will either make you land on your feet or push you off a cliff without a chute.
Every Vendor and service provider will come with attractive bargains. Asking people around, or searching product responses is your best bet. However, there are legitimate platforms that specialize in offering the best software product and service listing based on peer reviews and performance score. Such platforms are ubiquitous. They comprise real time user reviews, pricing and feature(s) selection and detailed filters that answer to particular needs of the business buyer. They help buyers narrow down their choices as per their business size, scale, features required etc.
There are a million vendors and service providers, from well-known brands to new and emerging businesses who have excellent offerings. You will tap into vendors and service providers willing to customize their wares to suit your business.
Peer-user reviewers are a goldmine on these portals. Most businesses depend on user experiences to arrive at decision making on their purchases. Listing and discovery platforms give users a chance to interact with the sellers and express honest opinions on the products and services used. This in turn empowers prospective buyers with informed choices.
Companies listed here are thoroughly screened for featuring on the platform. Discovery review and listing platforms also support buyers with additional armor, providing resources, backed by strong industry research and guiding material. In recent years, they have come to be regarded are the principle reference point for tech buyers. They help in bridging the gap between B2B buying and selling, making the seller more approachable and open to the growing buying population.
SMBs have untapped potential. A lot of SMBs are bootstrapped and heavily reliant on sensible and feasible technology investments. Our times afford success of these small companies on their way to becoming bigger names, but with the right impetus. As part of the chief technology user base, they project a promising future for technology service and product sellers. In fact, many SMB centric products and services command a huge market share. In the coming decade their overall contribution may be on par with bigger enterprises. In a way 2020 and pervasive and ever evolving technologies will set the stage for this.
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to email@example.com