UK SMEs increase MSP usage amid economic pressures and AI adoption challenges: research

SMEs are increasingly investing in AI initiatives ( up 81 per cent) and relying on MSPs (up 51 per cent), according to new research

A new report from JumpCloud highlights the evolving challenges faced by UK small and medium-sized enterprises (SMEs) as they navigate an increasingly complex IT landscape.

The Q3 2024 SME IT Trends Report paints a picture of businesses caught between the promise of AI and the perils of cybersecurity threats.

The appetite for AI adoption among UK SMEs has grown significantly, with 81 per cent agreeing their organisation should invest in AI initiatives, up from 70 per cent in Q1 2024.

However, this enthusiasm is tempered by security concerns, as 64 per cent of respondents believe AI threats are outpacing their ability to defend against them.

Security remains the top challenge for UK businesses, with 61 per cent citing it as their biggest concern.

The report reveals that 44 per cent of UK SMEs have fallen victim to cyberattacks, with phishing (43 per cent) and shadow IT (33 per cent) being the primary vectors.

Alarmingly, 85 per cent of respondents expressed concern about shadow IT, reflecting the growing complexity of managing IT resources.

Despite these challenges, there's a silver lining in terms of budget allocations.

The report indicates a slight increase in IT budgets, with 76 per cent of respondents reporting budget increases in Q3 2024, up from 72 per cent in Q1.

This has translated into better financial preparedness for cyberattacks, with 73 per cent feeling equipped to handle such incidents, up from 65 per cent in the previous quarter.

Tool sprawl is emerging as a significant issue, with 46 per cent of UK respondents managing between 5-10 tools for employee lifecycle management, up from 32 per cent in Q1.

This complexity is driving a desire for consolidation, with 81 per cent preferring a single centralised solution for identity, access, and security.

The report also highlights the growing reliance on MSPs, with 51 per cent of SMEs using them for internal IT support, up from 39 per cent.

However, concerns persist about how MSPs handle security, with 37 per cent of respondents expressing reservations.

As the UK approached its general election, half of the respondents admitted that the political climate is creating additional business uncertainty.

This, coupled with the rapid pace of technological change, is forcing SMEs to adapt quickly or risk falling behind.

The JumpCloud report is based on a survey of 311 IT decision-makers in UK organisations with 2,500 or fewer employees.