Predictions for the technology industry in 2025

Technology always has been, and always will be, the future. In the next two decades, the percentage of the economy made up of small to mid-sized businesses is going to exponentially grow. Thanks to technology, SMBs can compete with larger, global brands like they never could before.

SMBs’ productivity increases since they now have access to the same tech big companies have and this allows them to be more entrepreneurial. They are making up a larger portion of the global economy, which presents tremendous opportunity for managed services providers (MSPs). Many of these SMBs don’t have internal IT and security. Their systems are their most important assets, and they need MSPs to deliver it for them.

The downside is that since it’s a great market to be in, there will be a lot of competition. The MSPs who are effectively able to leverage automation to make their teams more productive, and have a cost structure in place, will win. They will have more efficient engineers that yield more revenue. They’ll also have lower software and technology costs because instead of spending 25% on their software and hardware kits, they’ll be spending 10% or 15%. As a result of these two things – their gross margins will be higher, and therefore, they can invest more in their business, be aggressive on pricing and still meet their financial objectives.