In today’s fast-paced digital environment, IT teams at small and medium-sized enterprises (SMEs) face ever-evolving challenges. With cyberthreats advancing rapidly and AI continuously reshaping the digital landscape, staying ahead is more crucial than ever. JumpCloud Inc.’s Q3 2024 SME IT Trends Report, titled “Detours Ahead: How IT Navigates an Evolving World,” sheds light on the latest challenges and opportunities for SME IT teams. Here are the key findings from the report.
Globally, IT teams are navigating challenging economic conditions. Nearly half (49%) of organizations have faced layoffs in the past six months, a decrease from 57% in Q1 2024. Over a quarter (28%) have already experienced layoffs and foresee more in the next six months, while 18% have not yet had layoffs but expect them. About 21% have experienced layoffs but do not anticipate further reductions. 33% have not experienced layoffs and do not expect this in the next six months.
Inflationary pressures from vendors continue to impact SMEs, though the severity appears to diminish. The report shows that 75% of organizations have faced increased licensing or subscription costs, a decrease from 88% in Q1 2024. Despite these rising costs, IT budgets are on the rise, with 77% of SMEs reporting an increase, and 17% noting a surge of more than 20% over the past year. Optimism for the latter half of 2024 remains strong, with 70% expecting their IT budgets to grow.
Balancing security and user experience remains a significant challenge for IT professionals in 2024. The demand for a unified platform is rising, with 84% of IT pros preferring a single platform to manage user identity, access, and security, up from 75% in Q1 2024. Security is the biggest challenge for 60% of SMEs, followed by new service and application rollouts (42%), the cost of remote work solutions (41%), and device management (39%).
Shadow IT is a growing concern for SME IT pros, joining the list of top security concerns. The major security worries cited by them include network attacks (40%), software vulnerability exploits (31%), ransomware (31%), and shadow IT (29%).
As diverse device environments become more common, securing and managing these devices remains a critical challenge. IT teams are increasingly focusing on centralized device management to streamline visibility and control.
Managed Service Providers (MSPs) continue to play a crucial role in the IT landscape. SMEs rely on MSPs for identity, user, and device management. 76% of SMEs depend on MSPs for at least some functions and another 12% consider partnering with one.
SMEs find partnering with MSPs integral to IT operations, with 67% planning to increase their MSP investment over the next 12 months. SMEs use MSPs for cost-effectiveness (58%), staying up to date on the latest technologies (55%), providing a better user experience (50%), and securing user access and identity better than internal teams (40%).
Key IT programs managed by MSPs include, cloud storage (53%), system security (52%), system management (49%), system monitoring (46%), and managed backup (37%).
As AI continues to evolve and find new applications, SMEs are cautiously advancing their AI strategies while maintaining concerns about its potential impact. Planning for AI initiatives has increased, with only 10% of organizations having no plans to implement AI, down from 13% six months ago. Those planning AI projects within the next six months have risen to 35%, up from 27% in Q1 2024. Additionally, 82% believe their organizations should invest in AI.
Opinions on AI’s impact have varied: 22% feel its effect is less than expected, 34% believe it’s moving slower than anticipated, 21% have unchanged views, and 23% see a greater impact than initially thought.
Despite AI’s contributions to IT, security concerns persist, with 25% of organizations experiencing AI-generated attacks in 2024. A majority (61%) feel AI is outpacing their security capabilities, similar to the 62% in Q1 2024. However, the number of IT professionals who strongly agree with this concern has decreased to 22%, down from 29%. Worries about AI’s impact on jobs have also dropped, with 35% expressing concern, a significant decrease from 45% in Q1 2024.
Thriving in Modern IT: Key Considerations
- Highlight Shadow IT: Use tools to quickly identify unauthorized apps or devices.
- Embrace Diversity: Manage various operating systems like Windows, macOS, and Linux seamlessly.
- Optimize Your MSP: Regularly assess your Managed Service Provider’s costs, features, and effectiveness, and be ready to switch if needed.
- Streamline access management: Aim for a single tool to manage identity and access management (IAM).
- Strengthen security: Enhance security with biometrics, AI, or centralized IT, focusing on flexibility, visibility, and control.
