April 14, 2025 • 8 mins
With global IT spending projected to hit $5.75 trillion in 2025, this episode covers key drivers like AI, blockchain, and automation. Gar and Reid share how SMBs are balancing budgets with strategic investments in cybersecurity, telemedicine, and cloud solutions. Plus, hear real-world strategies on leveraging technology for competitive advantages and scalable growth.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to another episode ofVisionary IT.
(00:00):
Today,
(00:03):
we're diving into something every SMBneeds to keep an eye on-how IT
spending is shaping up in 2025 and whatit means for businesses navigating
a fast-evolving tech landscape.
Yeah,
I mean, these trends aren't just numbers.
They're a roadmap to where opportunity isand where risk might sneak
(00:23):
up on you if you don't look ahead.
It's kind of impossible to ignore howmuch cybersecurity,
AI, and automation keep transforming theway SMBs operate.
Absolutely.
And with the overall IT spendingprojected to increase significantly
globally, today's episode is all aboutmaking sense of those drivers and,
(00:44):
more importantly, showing how to stayahead of the curve-strategically.
Right.
And the best part, at least for me,
is breaking it all down into somethinglisteners can actually use.
Because let's be real-none of thismatters if you can't apply it to your
business.
That's exactly why we're here.
So whether you're managing growing painsor planning your next move into
(01:04):
AI or automation, stick with us.
Alright,
let's get into it.
Alright, let's dive right into thenumbers-IT spending
for 2025 is set to grow by 9.
3%,
hitting a remarkable 5.
75 trillion dollars globally.
Whoa,
that's wild!
9.
3% doesn't sound like much until yourealize that's trillions we're
(01:25):
talking about.
And it makes you wonder-what's reallydriving that?
Good question!
It's coming down to a few heavy hitters: cybersecurity enhancements, (01:29):
undefined
automation,and the adoption of AI and blockchain.
Cybersecurity alone accounts for overhalf of businesses planning to
increase their spending.
Alright,
let's pause there for just a second.
Cybersecurity, I get-you've got growingthreats and compliance concerns-but
blockchain?
You mean, cryptocurrency?
Not just cryptocurrency.
(01:52):
Blockchain's applications go far beyondthat,
like smart contracts in supply chainmanagement or even verifying identities
securely.
It's all about transparency and trust.
And as it matures, more industries areseeing real value in adopting
it in their business.
Got it.
And for SMBs this means staying curious.
(02:14):
If your bigger competitors are divinginto blockchain or leveraging AI,
it's probably worth at least exploringwhat that could mean for your
business.
Exactly.
Couple that with automation-76% ofleaders are identifying it as their
best opportunity to deliver value.
Automating workflows or processes doesn'tjust save time,
(02:36):
it frees up resources that businesses canreinvest elsewhere.
And that's
where the competitive edge comes in.
Adopting these tools helps smaller teamspunch above their weight,
so they're not getting swallowed in themarket.
Right.
And AI is kind of the umbrella tying allthis together.
From predictive analytics to customerbehavior insights,
(02:58):
it's reshaping industries.
Companies not investing in tools likeMicrosoft Copilot are,
frankly, at risk of falling behind.
The pace of change isn't slowing.
Yeah,
it's like not jumping on Windows updatesback in the day-you're gonna
get left in the dust.
Exactly.
And the trick here is figuring out howSMBs can leverage these trends
(03:19):
practically,while managing the costs effectively.
That's the sweet spot,
right?
Innovating without going way over budget.
Speaking of managing costs effectively,
let's shift gears a bit and dive intostrategic IT budget allocation.
A big part of finding that sweet spot wetalked about lies in understanding
the difference between OPEX-operationalexpenses-and CAPEX,
(03:41):
or capital expenses.
Okay, break that down for us.
What are we really talking about here?
So,
for those who might not know,operational expenses are your recurring
costs...subscriptions for software,
managed services, that sort of thing.
CAPEX, on the other hand, is yourbig-ticket upgrades...like replacing
outdated hardware or rolling out newinfrastructure.
(04:02):
Unfortunately, businesses oftenmiscalculate how much to allocate to
each.
Right.
You either overspend, or worse,
you underspend and suddenly your techis...well,
a liability.
Exactly.
The key is setting realistic spendingthresholds based on your industry.
Take healthcare SMBs, for example.
(04:23):
Many allocate a larger portion of theirbudget to cybersecurity and telemedicine
solutions.
That makes sense when you're dealing withsensitive data and patient
care.
Oh,like that case we worked with last year,
the clinic that wanted to balance both?
They had to upgrade their networksecurity while also rolling out remote
patient monitoring tools.
Yes,and the strategy was simple but effective.
(04:47):
They used managed IT services to optimizecosts and ensure that both
investments delivered real ROI.
Managed IT is such a game-changer,
isn't it?
I mean,instead of hiring an in-house team,
you're essentially renting expertise whenyou need it.
That's the beauty
of it.
When SMBs spend around $110 to $400 peruser per month,
(05:11):
they're not just saving money-they'realso getting strategic guidance.
It's proactive, not reactive.
And that keeps costs under control overthe long term.
Which ultimately
gives business owners peace of mind.
I mean, let's face it, who wants to bethe one worrying about ransomware
attacks at 3 a.
m.?Exactly!
Budgeting isn't just about what youspend; it's about what you prevent
(05:32):
from happening, too.
Strategic allocation ensures you'reprepared,
no matter what comes your way.
Building on strategic allocation,
let's talk about future-proofing your ITstrategy.
It's a concept we hear a lot about,
but what does it actually mean for SMBs?
It's really about staying flexible.
The tech landscape is shifting sofast-being ready to adapt is kinda
(05:54):
the name of the game.
Right.
And one of the biggest enablers of thatflexibility?
Cloud solutions.
Scalable, cost-effective, and capable ofsupporting growth while keeping
pace with evolving technologies.
The trick is choosing the right mix ofplatforms and services that align
with your specific business needs.
Totally.
We've seen this work firsthand.
Remember that financial firm we workedwith last year-the one juggling
(06:18):
compliance headaches and rising storagedemands?
I do.
They were struggling to manage theiron-site infrastructure while staying
compliant with regulations.
By transitioning to a cloud-first model,
not only did they reduce costs,
but they also improved their operationalefficiency.
Plus, they improved security-which is apriority when you're dealing
(06:42):
with financial data.
And implementing cloud tools streamlinedtheir reporting
process, right?
I mean, before,it took weeks to audit their data.
With the new system,they were running their reports in,
what, minutes?
That's right.
And that freed up their team to focus onhigher-value tasks.
It's a great example of howfuture-proofing empowers people to do more
(07:06):
by giving them the right tools.
Speaking of people,
can we talk about employee training for asecond?
I feel like that's the unsung hero offuture-proofing.
I mean, even the best tech goes sidewaysif your team doesn't know how
to use it-or worse, if they accidentallycreate vulnerabilities.
Absolutely.
(07:27):
Comprehensive training in cybersecuritybasics is non-negotiable.
From phishing awareness to safe passwordpractices,
these trainings might seem simple,
but they're incredibly effective atminimizing risks.
For sure.
And, hey, here's a tip for ourlisteners-use visual tools to communicate
these things!
(07:47):
Whether it's training employees orpitching budgets to stakeholders,
data visualizations make your messageland stronger.
Charts, dashboards,videos-they work wonders.
Couldn't agree more!
Clear communication ensures buy-in,
whether it's from your team or thedecision-makers holding the purse
strings.
And when everyone's on the same page,
(08:09):
your IT strategy has a better chance ofsucceeding.
Exactly.
So, to wrap it up (08:13):
be flexible,
keep investing in your people,
and don't skimp on communication.
This is how SMBs can future-proofeffectively.
And on that note,
that's all for today.
Thanks for joining us to explore asmarter approach to IT spending and
strategy!
Yeah, thanks for tuning in.
Until next time,stay visionary and stay secure.
Welcome back to another episode ofVisionary IT.
(00:00):
Today,
(00:03):
we're diving into something every SMBneeds to keep an eye on-how IT
spending is shaping up in 2025 and whatit means for businesses navigating
a fast-evolving tech landscape.
Yeah,
I mean, these trends aren't just numbers.
They're a roadmap to where opportunity isand where risk might sneak
(00:23):
up on you if you don't look ahead.
It's kind of impossible to ignore howmuch cybersecurity,
AI, and automation keep transforming theway SMBs operate.
Absolutely.
And with the overall IT spendingprojected to increase significantly
globally, today's episode is all aboutmaking sense of those drivers and,
(00:44):
more importantly, showing how to stayahead of the curve-strategically.
Right.
And the best part, at least for me,
is breaking it all down into somethinglisteners can actually use.
Because let's be real-none of thismatters if you can't apply it to your
business.
That's exactly why we're here.
So whether you're managing growing painsor planning your next move into
(01:04):
AI or automation, stick with us.
Alright,
let's get into it.
Alright, let's dive right into thenumbers-IT spending
for 2025 is set to grow by 9.
3%,
hitting a remarkable 5.
75 trillion dollars globally.
Whoa,
that's wild!
9.
3% doesn't sound like much until yourealize that's trillions we're
(01:25):
talking about.
And it makes you wonder-what's reallydriving that?
Good question!
It's coming down to a few heavy hitters: cybersecurity enhancements, (01:29):
undefined
automation,and the adoption of AI and blockchain.
Cybersecurity alone accounts for overhalf of businesses planning to
increase their spending.
Alright,
let's pause there for just a second.
Cybersecurity, I get-you've got growingthreats and compliance concerns-but
blockchain?
You mean, cryptocurrency?
Not just cryptocurrency.
(01:52):
Blockchain's applications go far beyondthat,
like smart contracts in supply chainmanagement or even verifying identities
securely.
It's all about transparency and trust.
And as it matures, more industries areseeing real value in adopting
it in their business.
Got it.
And for SMBs this means staying curious.
(02:14):
If your bigger competitors are divinginto blockchain or leveraging AI,
it's probably worth at least exploringwhat that could mean for your
business.
Exactly.
Couple that with automation-76% ofleaders are identifying it as their
best opportunity to deliver value.
Automating workflows or processes doesn'tjust save time,
(02:36):
it frees up resources that businesses canreinvest elsewhere.
And that's
where the competitive edge comes in.
Adopting these tools helps smaller teamspunch above their weight,
so they're not getting swallowed in themarket.
Right.
And AI is kind of the umbrella tying allthis together.
From predictive analytics to customerbehavior insights,
(02:58):
it's reshaping industries.
Companies not investing in tools likeMicrosoft Copilot are,
frankly, at risk of falling behind.
The pace of change isn't slowing.
Yeah,
it's like not jumping on Windows updatesback in the day-you're gonna
get left in the dust.
Exactly.
And the trick here is figuring out howSMBs can leverage these trends
(03:19):
practically,while managing the costs effectively.
That's the sweet spot,
right?
Innovating without going way over budget.
Speaking of managing costs effectively,
let's shift gears a bit and dive intostrategic IT budget allocation.
A big part of finding that sweet spot wetalked about lies in understanding
the difference between OPEX-operationalexpenses-and CAPEX,
(03:41):
or capital expenses.
Okay, break that down for us.
What are we really talking about here?
So,
for those who might not know,operational expenses are your recurring
costs...subscriptions for software,
managed services, that sort of thing.
CAPEX, on the other hand, is yourbig-ticket upgrades...like replacing
outdated hardware or rolling out newinfrastructure.
(04:02):
Unfortunately, businesses oftenmiscalculate how much to allocate to
each.
Right.
You either overspend, or worse,
you underspend and suddenly your techis...well,
a liability.
Exactly.
The key is setting realistic spendingthresholds based on your industry.
Take healthcare SMBs, for example.
(04:23):
Many allocate a larger portion of theirbudget to cybersecurity and telemedicine
solutions.
That makes sense when you're dealing withsensitive data and patient
care.
Oh,like that case we worked with last year,
the clinic that wanted to balance both?
They had to upgrade their networksecurity while also rolling out remote
patient monitoring tools.
Yes,and the strategy was simple but effective.
(04:47):
They used managed IT services to optimizecosts and ensure that both
investments delivered real ROI.
Managed IT is such a game-changer,
isn't it?
I mean,instead of hiring an in-house team,
you're essentially renting expertise whenyou need it.
That's the beauty
of it.
When SMBs spend around $110 to $400 peruser per month,
(05:11):
they're not just saving money-they'realso getting strategic guidance.
It's proactive, not reactive.
And that keeps costs under control overthe long term.
Which ultimately
gives business owners peace of mind.
I mean, let's face it, who wants to bethe one worrying about ransomware
attacks at 3 a.
m.?Exactly!
Budgeting isn't just about what youspend; it's about what you prevent
(05:32):
from happening, too.
Strategic allocation ensures you'reprepared,
no matter what comes your way.
Building on strategic allocation,
let's talk about future-proofing your ITstrategy.
It's a concept we hear a lot about,
but what does it actually mean for SMBs?
It's really about staying flexible.
The tech landscape is shifting sofast-being ready to adapt is kinda
(05:54):
the name of the game.
Right.
And one of the biggest enablers of thatflexibility?
Cloud solutions.
Scalable, cost-effective, and capable ofsupporting growth while keeping
pace with evolving technologies.
The trick is choosing the right mix ofplatforms and services that align
with your specific business needs.
Totally.
We've seen this work firsthand.
Remember that financial firm we workedwith last year-the one juggling
(06:18):
compliance headaches and rising storagedemands?
I do.
They were struggling to manage theiron-site infrastructure while staying
compliant with regulations.
By transitioning to a cloud-first model,
not only did they reduce costs,
but they also improved their operationalefficiency.
Plus, they improved security-which is apriority when you're dealing
(06:42):
with financial data.
And implementing cloud tools streamlinedtheir reporting
process, right?
I mean, before,it took weeks to audit their data.
With the new system,they were running their reports in,
what, minutes?
That's right.
And that freed up their team to focus onhigher-value tasks.
It's a great example of howfuture-proofing empowers people to do more
(07:06):
by giving them the right tools.
Speaking of people,
can we talk about employee training for asecond?
I feel like that's the unsung hero offuture-proofing.
I mean, even the best tech goes sidewaysif your team doesn't know how
to use it-or worse, if they accidentallycreate vulnerabilities.
Absolutely.
(07:27):
Comprehensive training in cybersecuritybasics is non-negotiable.
From phishing awareness to safe passwordpractices,
these trainings might seem simple,
but they're incredibly effective atminimizing risks.
For sure.
And, hey, here's a tip for ourlisteners-use visual tools to communicate
these things!
(07:47):
Whether it's training employees orpitching budgets to stakeholders,
data visualizations make your messageland stronger.
Charts, dashboards,videos-they work wonders.
Couldn't agree more!
Clear communication ensures buy-in,
whether it's from your team or thedecision-makers holding the purse
strings.
And when everyone's on the same page,
(08:09):
your IT strategy has a better chance ofsucceeding.
Exactly.
So, to wrap it up (08:13):
be flexible,
keep investing in your people,
and don't skimp on communication.
This is how SMBs can future-proofeffectively.
And on that note,
that's all for today.
Thanks for joining us to explore asmarter approach to IT spending and
strategy!
Yeah, thanks for tuning in.
Until next time,stay visionary and stay secure.
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