Continuing the Digitalization Journey
29-May-2025
Global
Customer Research
PFUJ-01-00-00-00
IT_2025_33518
Small businesses (10-99 employees) perceive the cloud as essential to success. While they lag behind larger enterprises in technology adoption, they plan to invest in technologies such as AI/ML, cloud, and automation to achieve their business goals. In the 2024 Frost & Sullivan Global Cloud Decision-Maker survey, small business respondents shared their perceptions, purchase decisions, and plans related to cloud, IT, and AI. Key findings include:
• AI is considered a strategic investment to help achieve business goals. Top drivers for AI investments include improving operations, enhancing the employee experience, and boosting innovation.
• The percentage of small businesses using public and multi-cloud infrastructure will double by 2026; the percentage using hybrid cloud will triple. At the same time, small businesses plan to retain infrastructure on-premises, primarily to support legacy applications.
• Small businesses turn to managed service providers (MSPs) to fill expertise gaps, especially in application development, data migration, and data management.
This report offers small businesses and IT service providers a glimpse of the near future for the cloud and AI markets.
Key Findings
Small Businesses Prioritize Growing Revenue & AI Adoption
Hybrid and Multi-cloud are Essential For Business Success
Small Businesses Explore all Cloud Types
Top Reasons for Deploying Apps in the Public Cloud
Security and Costs Pose Challenges
On-Premises Data Center Use Trend Among Small Businesses
Small Business Employees Prefer the Familiarity of On-Premises Solutions
Migrating Workloads to the Cloud
Modernization Approaches for Legacy Workloads
Third-Party Services to Support Small Business Cloud Strategies
Quick Delivery, Efficient Workload Management Top MSP Benefits
Small Businesses Begin their AI Journeys
AI Supports Better Operations & Talent Management
Small Businesses Deploy Apps Integrated with GenAI
Growth Opportunities Fuel the Growth Pipeline Engine™
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
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- Growth Dialog™ with our experts
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A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.
• AI is considered a strategic investment to help achieve business goals. Top drivers for AI investments include improving operations, enhancing the employee experience, and boosting innovation.
• The percentage of small businesses using public and multi-cloud infrastructure will double by 2026; the percentage using hybrid cloud will triple. At the same time, small businesses plan to retain infrastructure on-premises, primarily to support legacy applications.
• Small businesses turn to managed service providers (MSPs) to fill expertise gaps, especially in application development, data migration, and data management.
This report offers small businesses and IT service providers a glimpse of the near future for the cloud and AI markets.
| Deliverable Type | Customer Research |
|---|---|
| Industries | Information Technology |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | SMB cloud adoption |
| Keyword 2 | Small business cloud trends |
| Keyword 3 | Cloud service market SMB |
| Podcast | No |
| Predecessor | K938-01-00-00-00 |
| WIP Number | PFUJ-01-00-00-00 |
State of the Cloud 2024 - Small Businesses
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