Small and midsize businesses are optimistic about their future. The good news for MSPs: SMBs are ready to invest in technology. That was a key takeaway from the Global Technology Industry Association’s (GTIA) newly released 2025 SMB Technology & Buying Trends Research report.
The results of the study, unveiled on July 29 at GTIA’s ChannelCon 2025 MSP conference, showed how SMBs are aligning tech spending with growth goals. They are increasing investments in AI and facing gaps in cybersecurity strategy.
Carolyn April, GTIA vice president of research and market intelligence, unveiled several highlights of the study during a ChannelCon presentation titled What’s Up with Your Customers? Exploring SMB Tech Buying Trends 2025.
Tech Budgets on the Rise
GTIA research showed that about one-third of SMBs said they are thriving despite economic uncertainty, and nearly 40% increased their tech budgets in 2025. Another 4 in 10 said they expect to add more money to their IT budgets midyear if business conditions improve.
“Most SMBs are pretty optimistic about their own business,” April said during the presentation. “About one-third think they’re thriving. That is in an environment right now that we all know has been pretty chaotic in terms of the economy.”
Opportunity Knocks for IT Service Providers
Many SMBs are looking for support to turn technology into outcomes like better customer experience, improved efficiency, and greater employee productivity. That signals a clear market opportunity for MSPs.
Nearly 65% of SMBs called technology a primary factor in achieving business goals. Yet 80% admitted they have “some or a lot of room” to improve their vision and strategy around IT.
That’s where IT service professionals come in. Many SMBs are seeking support to tie technology to outcomes like better customer experiences, operational efficiency, and employee productivity.
AI Tops Emerging Tech Priorities
AI is gaining traction across the SMB landscape. More than six in 10 respondents said they plan to increase AI spending in 2025.
AI topped the list of emerging technologies SMBs expect to have the most impact in the next two years. But strategy is a sticking point.
Many SMBs are testing AI but haven’t fully integrated it into business workflows. This presents an opening for MSPs that can guide AI implementation and governance.
GTIA’s Carolyn April offered insights to MSPs during a presentation at ChannelCon 2025.
“You’ve got customers who are clueless but willing. They know about AI, they just don’t know what to do about it. That’s where MSPs come in,” April said. “You become an educator, essentially.”
Making the Case for AI
MSPs who haven’t yet embraced AI risk missing out on a significant revenue opportunity. Consider the following stats from the GTIA report:
- About one-third of SMBs are already using AI in production.
- Roughly half are experimenting with pilot projects.
- The remaining 20% haven’t adopted AI at all.
“More than any other area, [SMBs] said they’d love to spend on more innovation and cutting-edge technology,” April noted. “That could be AI, data analytics, or even contracting a managed services provider, if they had the budget.”
Cybersecurity Still Is an Afterthought for Many
Despite ongoing threats, just four in 10 SMBs said cybersecurity is a strategic technology area they plan to prioritize in 2025. Contrast that with other industry reports that SMBs impacted by a major breach are often out of business within six months.
That’s a warning sign.
“They don’t think they’re as vulnerable as they truly are, and they don’t really understand the risk,” April emphasized. “You can be that educator that makes them understand, not using fear-mongering, that cybersecurity is that important to your business.”
MSPs can play a vital role in helping SMBs move from reactive to proactive security postures. They also must educate SMBs on the risks of underinvestment.
Market Snapshot: Why SMBs Matter
Here are some more telling numbers on SMBs from the report:
- 99% of all U.S. businesses have fewer than 500 employees.
- SMBs represent 45% of the total U.S. workforce (U.S. Bureau of Labor Statistics).
- About two-thirds plan to spend between $25,000 and $1 million on technology in 2025.
- SMBs are often allocating a larger share of revenue toward tech than larger enterprises.
The data reinforces a simple message: SMBs are not just small-scale businesses. They are dynamic growth engines with complex IT needs and high expectations from their providers.
A Call to Lead, Not Just Support
GTIA’s latest research paints a clear picture of SMBs in transition. They are eager to modernize, experiment with AI, and scale with security in mind. But many still need a guiding hand.
“If you’re just selling technology and not thinking about what your customer really needs to grow or streamline, you’re missing the opportunity,” April noted.
For MSPs willing to lead with strategy, consultative value, and clear outcomes, 2025 is shaping up to be a year of opportunity.
Images: iStock; Anjali Fluker/ChannelPro
