In today’s dynamic digital landscape, small and medium-sized enterprises (SMEs) face a myriad of challenges, from tightening budgets to sophisticated cyber threats. According to JumpCloud Inc.’s Q3 2024 SME IT Trends Report, titled “Detours Ahead: How IT Navigates an Evolving World,” 67% of SMEs plan to increase their investment in Managed Service Providers (MSPs) over the next 12 months.

The study finds IT teams operating in troubled economic waters, with nearly half of those surveyed furloughing employees or instituting layoffs within the past six months. Although an improvement from the 57% in Q1 2024, nearly 30% predict additional layoffs. However, it’s not all doom and gloom—77% of SMEs saw a rise in their IT budgets, with close to one-fifth (17%) experiencing more than a 20% surge over the last year.

A critical insight from the report is the rising demand for a unified platform to manage user identity, access, and security. This preference has grown from 75% in Q1 2024 to 84% in the latest survey, reflecting a broader industry shift towards integrated IT solutions. Security remains the top challenge for 60% of SMEs, followed by the rollout of new services and applications (42%), the cost of remote work solutions (41%), and device management (39%).

Shadow IT, alongside network attacks, software vulnerability exploits, and ransomware, remains a significant concern. To address these challenges, more SMEs are now seeking help from MSPs. Seventy-six percent of SMEs use MSPs for some level of identity, user, and device management, with another 12% actively evaluating partnering with an MSP.

The primary business benefits of MSPs include saving costs (58%), keeping up with the latest technologies (55%), improving user experience (50%), and strengthening identity access security for users (40%). Key IT programs under MSP control include cloud storage (53%), system security (52%), system management (49%), system monitoring (46%), and managed backup (37%).

The report also highlights a slow but steady AI revolution occurring within SMEs. While concerns about AI-generated attacks continue—affecting 25% of organizations last year—planning for AI projects is increasing. Only 10% of organizations have no plans to implement AI, down from 13% six months ago, with another third planning projects within the next six months.

Despite the growing adoption of AI, 61% of IT professionals feel that AI is advancing faster than their security capabilities, a sentiment consistent with Q1 2024 findings. However, the intensity of this concern is waning, with only 22% strongly agreeing, down from 29%.

As businesses navigate this ever-changing landscape, the role of MSPs has become even more integral. MSPs help companies maintain an orderly IT environment, keep pace with technological advancements, and protect against security threats—imperative features for staying competitive in the digital age.