Excallanta’s Q1 2024 SME IT Trends Report

Managing IT has become increasingly complex as organisations adapt to modern work environments characterised by varied devices and global access needs. The traditional, centralised IT models no longer suffice. IT teams are pressured to secure corporate resources while maintaining productivity and growth against rising threats and economic uncertainty.

AI Integration 

• 80% of IT admins view AI positively

  
• 62% feel AI developments are outpacing their organisation’s threat prevention capabilities

  
• 45% worry about AI impacting their jobs

Identity Transformation:

IT professionals are adopting open, cloud-based frameworks to manage identity efficiently. This helps address employee needs while reducing costs and complexity.

Key Findings

Economic Realities and Layoffs

• Over 57% of IT teams have experienced layoffs in 2023, up from 30% earlier in the year.

  
• Anticipation of layoffs continues, with 51% expecting more in the coming six months. The outlook, however, shows a slight improvement compared to earlier in 2023.

Security and Compliance Challenges

• External threats and regulatory demands have intensified, especially in distributed workforces. Compliance requirements are increasing, with India leading (83% reporting more regulations), followed by the U.S. (75%) and the U.K. (67%).

  
• Security remains a major focus as SMEs implement new technologies like biometrics and passkeys while continuing to rely on password-based systems.

Tool Consolidation vs Sprawl

IT admins prefer centralised tools for managing access and identity, but tool sprawl persists:


• 75% prefer single tools for managing employee resources.

  
• However, 60% use five or more tools, and 9% rely on over 15 tools, complicating IT management and security.

Managed Service Providers 

MSPs are increasingly vital, with 42% of SMEs relying on them for comprehensive IT management, a 56% increase since Q2 2023. MSPs help provide expertise, reduce complexity, and ensure cost-effectiveness.