The modern IT Services offering to small and medium sized businesses is changing at an unprecedented rate. From the transformative potential of AI, the ongoing importance of cybersecurity, to evolving cloud strategies, businesses face a complex array of challenges and opportunities in the 12 months ahead. Here, Roland Singer, VP IT Services Sharp Europe, explores the key trends shaping IT Services and offers predictions for the year ahead.
IT Services and the Use of AI
Artificial Intelligence (AI) has seen a rapid rise to market prominence over the last 18 months and continues to challenge the way many industries work. However, harnessing AI’s potential requires more than just adopting tools - it demands a strategic approach at all levels of the business.
It is fair to say that there has been considerable hype around the capabilities of AI. Some of it justified, some of it not. As a result, organisations are not currently getting the best out of the disruptive technology. Tools like Microsoft Copilot promise significant productivity boosts, but their implementation can be daunting – especially for smaller SMEs without their own dedicated IT know how.
At Sharp we feel there are two reasons for this; the first is a concern around what AI empowers employees to be able to do. AI can search everything available within an organisation’s systems at speed, in effect giving access to internal information that normally employees wouldn't be able to find. This leads to issues around security and how a business constructs its AI presence so as not to leak information.
Secondly, there are genuine issues around how individuals and organisations can best use AI to improve productivity and reduce costs.
The trend we are seeing because of these issues is the need for education around AI. As a result, businesses are turning to IT Service providers for consultancy on how to integrate AI effectively. These services focus on demystifying AI and helping organisations tailor solutions to their specific needs. Whether that is how to implement tools like Microsoft Copilot within the organisation for the best possible return, to training around security policies and how to implement them.
Sharp is developing a Microsoft Copilot consultancy service which will look at the security aspects and data governance within an organisation, and how Sharp can help them understand the benefits and how to implement a proper AI usage strategy across the organisation to drive efficiencies and achieve that return on investment.
Cybersecurity is a Priority in IT Services
Data lies at the heart of every business and as IT systems become more interconnected, cybersecurity is a top priority for businesses of all sizes. It is critical because it protects the organisation and the individuals within from malicious attacks, data breaches, and unauthorised access that could compromise sensitive information and disrupt operations. Such disruptions not only impact trade but can cause significant financial and reputational damage.
For many, security threats are something that happens to a business from outside. However, despite continued advances in cybersecurity technology, human error within a business continues to account for 88% of data breaches – regardless of the size of the business.
To combat this situation there is an ongoing need for awareness around security for organisations but there is also a trend for greater and more personalised training. Businesses need to train employees to recognise phishing attempts, social engineering, and other threats is crucial.
Beyond cyber threats, outside influences are also having an impact on business cybersecurity. New regulations, such as the European NIS2 directive, which makes it essential for companies to optimise their cyber resilience, including the ability to prevent, withstand and recover from cyber incidents will reshape cybersecurity requirements in 2025.
Different countries are taking slightly different approached when it comes to NIS2 but the baseline security compliance, which includes security awareness training as part of that audit process, is core across the whole region. For those organisations who may not have taken security seriously enough to this point will be forced to act.
This directive mandates stricter security measures for businesses but also impacts all aspects of the supply chain regardless of location. As a result, businesses must now ensure their supply chains meet regulatory standards, creating a ripple effect that forces even SMEs to elevate their security practices.
Cloud Services Go Beyond Single-Provider Solutions
In recent years we have seen the cloud computing market is moving beyond the simple "move everything to the cloud" approach. Rather, businesses are now seeking more nuanced, flexible cloud strategies that optimise performance, compliance, and deliver deeper cost-effectiveness.
Modern organisations are recognising that no single cloud solutions provider can meet all their needs. Instead, they are adopting a multi-cloud approach, with companies mixing on-premises infrastructure, private cloud, and public cloud services to match their specific business requirements. We like to think of this as a Hybrid Cloud strategy as it enables businesses to strategically place different services with providers that offer the best performance, pricing, and specialisation for each specific need.
As cloud technologies evolve, the ability to seamlessly integrate and manage diverse cloud services has become a critical competitive advantage for many organisations. However, while cloud migration initially appears cost-effective, expenses can escalate quickly. Businesses are now seeking strategic partners who can help them navigate and optimise their cloud expenditures across multiple platforms. Local providers can offer specialised, compliance-certified services that global hyperscalers might not provide.
The trend we are seeing is that organisations want a flexible, multi-cloud ecosystem but no longer wish to have multiple contracts or complexities. Therefore, organisations want to be able to choose best-in-class services from different providers while at the same time optimising performance and reducing cost.
As a result, we are seeing the creation of a Managed Service Layer with service providers offering intermediary platforms that simplify cloud management by offering a comprehensive service management agreement but best of all, a reduction in the complexity of their infrastructure.
This means choosing a single service provider, such as Sharp, that can cover all possibilities. Whether it's a service on prem, a private or shared cloud, or a hyperscaler doesn't matter. This means the business has one single point of contact – Sharp IT Services - and we manage everything, from the complexity of the infrastructure to the billing.
In Conclusion: IT Services Trends 2025
Right now, it is easy to see that IT services have entered a new era of complexity and opportunity. One in which many SMEs lack the expertise to fully understand or manage trends like AI, cloud computing, and cybersecurity.
We believe that this knowledge gap creates genuine opportunities for managed service providers. This can be in the form of guidance and becoming a trusted partner to business, to offering insightful solutions to help businesses of all sizes stay competitive.
