Analysys Mason Predicts That SMBs Will Increase Their Spending on Technology in 2023 but Not at Pre-pandemic Levels

SMBs will invest in IT solutions that drive innovation; and the adoption of new technologies will transform sales channels

Analysys Mason, a specialist technology consulting and research firm, predicts that small and medium-sized businesses will increase their spending on technology in 2023 and will be confident in business performance, despite the economic challenges. The 145 million SMBs worldwide are expected to spend USD1.45 trillion on IT in 2023 (40% from the Americas, 30% from Europe, the Middle East and Africa and 30% from Asia–Pacific), driven by the post-pandemic trend towards digital transformation. This represents a growth of 6.3% over 2022 spending, down from 7% year-on-year growth that was expected before the pandemic. The predictions are based on the data in Analysys Mason’s SMB Technology Forecaster, which provides insights into SMB spending in 132 technology categories in 52 countries.

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Analysys Mason predicts a shakeup in how vendors and the reseller channel sell to SMBs. One in three SMBs plan to switch channel providers to gain enterprise levels of service and support and SMB behaviour has shifted significantly resulting in more demand for cloud-based and as-a-service solutions.

“SMB technology spending is gradually getting back to pre-pandemic levels,” said Bob Takacs, Research Director, Analysys Mason. “There is concern about the broader economic environment, but SMBs are confident in their own businesses given that they pulled through the pandemic and are focused on how they can be set up for growth.”

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The message to technology vendors and resellers is to focus on service and support, while delivering clear messages around the business use cases of technology solutions. SMBs are looking for simple procurement and installation, tiered pricing and comprehensive support.

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Analysyscomprehensive supporteconomic challengeseconomic environmentinstallationNewspost-pandemicPre-Pandemic LevelsSMB spendingSMB Technology Forecasterspecialist technologyTechnologytiered pricing