News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | IDC Report Highlights MSPs' Vital Role as 40% of U.S. SMBs Lack In House IT

IDC’s research, sponsored by ConnectWise, underscores the role of Managed Service Providers (MSPs) in assisting small and medium-sized businesses (SMBs) with unified data and automation. Key findings reveal that approximately 40% of U.S. SMBs lack full-time in-house IT employees, and those that do typically have fewer than four.

UK small and medium-sized businesses (SMBs) are optimistic about the next 12 months, with many viewing digital transformation as essential for growth. Research shows that 18% have already invested in digital initiatives, while 30% consider it very important. Despite challenges like inflation and rising costs, over a third feel confident in overcoming obstacles, and 89% expect growth in 2024. The potential for significant revenue and job creation exists if SMBs digitize effectively.

Tech leaders anticipate increased IT budgets in 2025, with 90% expecting higher spending driven by AI and modernization efforts. Forrester projects a 5.3% rise in tech spending for 2024, although many increases will only match inflation.

In Q2 2024, 14% of global PC shipments were AI-capable, totaling 8.8 million units. Major vendors like Apple, Lenovo, HP, and Dell are expanding their AI-capable offerings, with significant growth expected in the second half of 2024. Canalys forecasts around 44 million AI-capable PCs to be shipped in 2024 and 103 million in 2025, driven by increasing demand for advanced features and performance.   Apple Macs accounted for 60% of that 8.8 million.

Why do we care?

I’m actually surprised the number is as low as 40%.    I would expect a lot more SMBs to not hire internal IT resources, considering how hard they are to retain, keep engaged, and manage.    

As the market for AI-capable devices grows, so will the demand for supporting services such as AI integration, security, and optimization.  Companies providing AI solutions and modernization services should prepare for increased demand. However, they should be cautious of potential budget constraints due to economic conditions, focusing on offering flexible pricing models and clear ROI justifications to secure contracts.   It always ties back to business outcomes.  

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