According to Analysys Mason's research, despite economic challenges, small and medium-sized businesses (SMBs) are expected to increase their technology spending in 2023. In fact, a third of SMBs plan on changing channel providers for better enterprise-level service and support.



The importance of digital transformation initiatives has become increasingly vital in meeting post-pandemic needs. As a result, the segment of 'early adopters' among SMBs is projected to expand from 10% worldwide to 15%. These forward-thinking SMBs have leveraged modern technologies, tested new features and product sets, and made greater IT investments.

As rising energy costs pose a challenge to SMBs' IT spending decisions, they may turn towards IoT solutions for greater efficiency in the long run. Additionally, with increased focus on budget control, investing in financial expense management software is another potential solution for SMBs.

ESG initiatives are also on the rise as SMBs become more aware of their importance. A significant portion of SMBs plan to start internal ESG initiatives or buy from vendors with established ESG policies.

In 2023, SMBs will demand a full client lifecycle management experience from their vendors and are turning to MSPs for comprehensive support. As a result, there will be an 11% annual increase in IT spending of SMBs reaching USD311 billion in 2023 compared to 2022.

To stay ahead of the curve, SMBs will invest more than USD66 billion in IT solutions from operators such as telecom providers. These operators are creating bespoke bundles for SMBs and forming partnerships with software/service providers to widen their reach.

SMBs will persist in working from home at least partially, thereby increasing the need for PC and device-as-a-service (PCDaaS) models. Therefore, SMBs will invest in solutions that include deployment, desktop support, recovery services, security measures, and managed services for dispersed workforces.

Lastly, SMBs are expected to boost their investments in platform-as-a-service (PaaS) solutions for IT resource efficiency, with increasing usage of advanced analytics tools such as BI software or AI applications contributing significantly toward open spending on PaaS technology.

I've observed a significant shift in the way Small and Medium Businesses (SMBs) are approaching the challenge of rising energy costs. The increasing prices of electricity, natural gas, and other energy sources have put tremendous pressure on the bottom line of SMBs, threatening their long-term viability and competitiveness.

In response to this pressing issue, SMBs are increasingly turning to Internet of Things (IoT) solutions as a strategic investment to optimize their energy consumption and reduce operational expenses. IoT technology offers a powerful and versatile toolkit that can be tailored to the unique needs and constraints of small and medium-sized enterprises.

One of the key advantages of IoT solutions for SMBs is the ability to gather comprehensive data on energy usage patterns within their facilities. Through a network of interconnected sensors and smart devices, IoT systems can provide granular insights into how energy is being consumed, right down to the individual equipment, appliance, or even specific work areas.

Armed with this data, SMB owners and managers can make informed decisions on where to target their energy-saving efforts. For instance, an IoT-enabled building management system can automatically adjust lighting, HVAC, and other energy-intensive systems based on real-time occupancy levels, weather conditions, and other contextual factors. This not only reduces energy waste but also enhances the overall comfort and productivity of the workplace.
IoT solutions often integrate with cloud-based analytics platforms, enabling SMBs to leverage advanced data-driven insights and predictive modeling. These insights can help business owners identify patterns, anomalies, and opportunities for optimization, leading to more strategic investments in energy-efficient technologies, such as solar panels, energy-efficient appliances, or even the optimization of production workflows.

I've witnessed the transformative potential of IoT solutions in the SMB sector. By seamlessly integrating hardware, software, and connectivity, these technologies empower small and medium-sized businesses to gain unprecedented visibility and control over their energy usage, allowing them to make data-driven decisions and implement targeted energy-saving measures.

Furthermore, the widespread adoption of IoT in the SMB sector can have far-reaching implications for the broader energy landscape. As more businesses optimize their energy consumption, the cumulative impact can contribute to a more sustainable and resilient energy ecosystem, benefiting not only individual enterprises but also the communities they serve.
The integration of IoT solutions represents a strategic and innovative approach for SMBs to address the pressing issue of rising energy costs. As an engineer, I'm excited to witness the transformative potential of these technologies in empowering small and medium-sized businesses to thrive in an ever-evolving energy landscape, while also contributing to a more sustainable and energy-efficient future.