IT for Small Businesses
Table of Contents
If you run a small business, you will no doubt want to focus on your core business. However, by using technology in a smart manner, you can improve your business reach and productivity. But IT can be a costly business unless you understand what is available, options for delivery, and what works for your company.
A recent report from JumpCloud Inc. has found that small to medium-sized businesses (SMBs) are focusing on certain areas of IT, including artificial intelligence (AI), identity management, security challenges, and managed service providers (MSPs). The report also highlights that IT spending is on the rise. In the USA, SMBs account for half of the total technology spend of $370 billion annually.
However, budgets remain tight for individual SMBs, and IT choices must be appropriate and cost-effective.
Small Business IT Solutions
Small businesses rely not only on their staff but also need reliable and cost-effective IT solutions. Specific technologies can offer enhancements to an SMB, enabling the company to reach a broader audience and often expand from a local to a global presence. IT solutions can enhance communication and allow employees to work remotely and securely. Many of the following solutions are available as cost-effective and tailored offerings for small businesses.
Cloud Services and SaaS
Most SMBs use some form of cloud service. The most common are software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), or platform-as-a-service (PaaS). Cloud services are public, private, or hybrid. For example, apps like Shopify and Google Workspace are popular among SMBs due to their affordability, ease of use, and accessibility.
Other SaaS solutions, such as Sage's cloud-based accounting packages, are used for financial control. Cloud storage, for example, Dropbox, is another popular IT solution that can help an SMB manage documents and files.
Cybersecurity
All companies, regardless of size, require robust security solutions. IT services must address security needs because of the heightened risk of modern security threats. Cloud services, for example, may come with built-in security. Microsoft 635, for example, has built-in protection in the form of Microsoft Defender. SMBs should evaluate cybersecurity solutions for network security, remote working, BYOD, and identity management.
Communication and Collaboration Technology
Communication technologies came to the rescue of many companies during the COVID-19 pandemic. Today, communication technologies such as Zoom, Microsoft Teams, and mobile devices, as well as collaboration platforms like Slack and Trello, are popular tools for work. The connectivity that enables remote communication is also crucial to the smooth operation of an SMB.
Customer Relationship Management (CRM)
Cloud-based CRM systems have provided SMBs with feature-rich ways to manage their customers. CRM is an essential tool for small businesses, as it helps streamline sales and after-sales processes. Many solutions, such as Monday and Salesforce, offer tailored offerings specifically designed for small to medium-sized organizations.
Website Creation and Management
For many SMBs, their website is the primary source of marketing. Website creation tools and platforms, such as Squarespace, offer an affordable and simplified way to create a website with an associated content management system (CMS). The technical support and ongoing maintenance of the site can be performed in-house; however, many IT service firms offer website management services.
AI for SMBs
AI is a trend to watch in the SMB technology space; according to JumpCloud Inc., 61% of small to medium-sized organizations expect to implement AI initiatives. According to Cisco, 40% of SMBs expect an increase in productivity when using AI to assist in workplace tasks. A report from Salesforce found that 91% of SMBs say AI boosts their revenue. AI is often embedded in existing tools, which means that an SMB will automatically weave the AI into its operations.
Cybersecurity for Small Businesses
According to the JumpCloud Inc. report, cybersecurity remains one of the top concerns of an SMB. This concern is warranted. An SMB is often vulnerable if it uses free security tools or lacks cybersecurity measures. Typically, an SMN has little or no in-house security skills, believing they won't be targeted as they are small.
However, this is far from the truth. One-third of SMBs are hit by a cyberattack; Microsoft describes SMB-focused attacks as "frequent and costly". A report from Microsoft found that 81% of SMBs believe that the increasing integration of AI into SMB operations will increase the need for additional security
With spiraling costs associated with cyberattacks, security is no longer a nice-to-have but a must-have. Around half of SMBs have experienced a website breach, and more than half (54%) say that a website attack would have a severe impact on their business. Recently, a British transport firm with over 50 years of experience and 700 employees collapsed when ransomware attackers hacked into the network by exploiting a weak password.
Around 80% of SMBs believe that a lack of security awareness among staff is a concern. With SMBs experiencing 350% more social engineering attacks than larger enterprises, ensuring that employees can identify a phishing or other socially engineered scam is essential.
IT options that help a small to medium-sized company deal with cyber threats cover many areas, but some ideas for free or affordable cybersecurity measures are as follows:
Tips for Free or Affordable Cybersecurity for SMBs
Small businesses should add the following security measures to help mitigate cyber threats, including phishing, social engineering, and malware:
- Password hygiene and awareness. Encourage your employees to create strong passwords. Explain to them the problems with sharing passwords or reusing the same password for multiple app logins.
- Multi-factor authentication (MFA). Wherever possible, ensure that MFA is switched on for any apps used at work.
- App and access management. Manage your apps and control their access. There are many options available to an SMB, including Microsoft Entra IS and Access Owl.
- Use online security awareness resources. Employee security awareness can help to stop phishing attacks. If you have a tight budget, you can use free online resources.
- Microsoft Defender Antivirus. Some cloud-based apps come with built-in security. Microsoft 365 Defender, for example, filters emails and removes malicious links. The basic version will provide a reasonable level of security, but more comprehensive security comes with the more expensive Microsoft 365 E5 license.
- Keep software and firmware patched. It is essential to ensure all patches are promptly installed to avoid leaving security vulnerabilities open for cybercriminals to exploit.
- Use encryption for stored data and when data is transferred. VPNs can be useful to ensure that data sharing is secure.
IT Regulations and SMBs
SMBs must abide by various data protection and privacy regulations; however, there are some derogations for smaller firms. For example, Article 30 of the GDPR states that "an enterprise or an organization employing less than 250 persons is not obliged to maintain records of processing". However, this does not apply if the SMB is processing highly sensitive data. Managed IT services can help advise and guide an SMB on regulatory requirements.
Managed IT for Small Business
Small to medium-sized businesses require technology to enhance productivity and strengthen their competitive edge. But it can sometimes feel as if the SMB has to use substandard technologies. This should not be the case if the SMB uses a managed service provider (MSP). An MSP offers a cost-effective way for an SMB to employ enterprise-grade technology.
MSPs are increasingly chosen to supply IT services, with 68% of MSPs seeing an increase in revenue, according to the Datto State of the MSP report. The reason 61% of SMBs pick an MSP is that they lack in-house technical expertise. Most MSPs offer both the technology and the expertise to utilize it effectively. Consequently, 42% of SMBs use an MSP to manage their entire IT environment.
MSP services usually include the following options:
Strategic Planning
To properly protect a company, regardless of its size, the way it operates, its IT resources, data, and employees' working practices need to be understood. An MSP can offer strategic planning to help define and align strategic goals with business objectives. The planning helps identify IT gaps and technologies needed to boost productivity and revenue. Strategic planning can also be used to identify regulatory compliance gaps in a technology stack and business processes.
IT Infrastructure
An MSP can deploy and manage a company's IT infrastructure and end-user systems. The MSP usually offers a subscription model that helps an SMB manage costs. The MSP can also help SMBs grow by handling their expansion needs and upgrades.
Managed IT Services
Many SMBs do not have in-house specialists with IT skills or have small IT departments. An MSP can take on IT tasks on behalf of an organization. Tasks include data management, technical support, and patching.
Managed Cybersecurity
Cybersecurity is a complex and often costly endeavor. Most MSPs offer security solutions, including network monitoring, endpoint security, email filtering, and security awareness training. Some MSPs will offer a managed Security Operations Center (SOC). The SOC team will monitor and manage your company network and systems, providing 24/7/365 threat detection and incident response.
Cloud Computing and SaaS
An MSP can provide installation, management, and access control to many enterprise-grade cloud apps. MSPs build strong, sustainable relationships with SaaS vendors, enabling them to deliver exceptional value for their SMB clients. Offering the use of enterprise SaaS based on a subscription model for delivery means that even micro organizations can have access to best-of-breed applications.
IT Support
Managed IT support addresses all the technical support needs of an organization. For example, they will monitor and alleviate any IT infrastructure and end-user system issues. The MSP can also provide employee IT support, including running a help desk. Some MSP vendors will offer cybersecurity-related IT support, including network monitoring, backup and recovery, and system patching and updates.
IT Consulting
If engaged as an IT consultant, an MSP will help to ensure that an SMB's IT infrastructure is optimized for performance, efficiency, and security. MSPs can help guide an SMB on the best available technology solutions to fit their business model. Some will offer guidance on security.
Small businesses require exceptional IT solutions to enhance productivity, improve revenue, and stay competitive. Cloud computing and SaaS have transformed the IT landscape, enabling even the smallest organizations to access and utilize enterprise-grade applications and infrastructure. However, technology comes at a cost. An SMB can reduce and manage these costs by using a managed service provider (MSP). MSPs offer cost-effective ways for small businesses to access the best that technology has to offer.
FAQs
What is a managed service provider (MSP)?
A managed service provider (MSP) delivers IT solutions to companies remotely, typically using a subscription model. An MSP builds relationships with technology vendors, allowing them to offer exceptional products and services at a cost-effective price. An MSP also offers IT services and consultancy to help an SMB decide what technologies best suit their business. Some MSPs offer cybersecurity services and solutions.
What kind of IT services and solutions does an SMB need?
Small businesses need various IT services and solutions. These include delivery of an IT infrastructure, communications technology, and cybersecurity measures. SMBs can benefit from the IT skills of an MSP in areas such as IT support, AI, and cybersecurity.
What are the benefits of using a managed IT service?
The benefits of using a managed IT service include the following:
- Set costs: An MSP usually works on a subscription model so that an SMB can spread its technology and services costs.
- Access to IT skills: MSPs employ IT specialists, including security professionals. These skills are then available to an SMB.
- 24/7/365 support: Support is SLA-dependent; however, an SMB can engage an MSP to deliver support all year round.
- Access to enterprise-grade tools: An MSP works with technology vendors to provide managed solutions to even the smallest companies.
- Scalable with your company: An MSP will offer provisions to scale up or down as your company changes. The MSP will offer flexible plans that ensure your company's managed services and infrastructure technology reflect your needs.