Why SMEs are investing 
in IT infrastructure

The efficiency of IT infrastructures in small and medium-sized enterprises (SMEs) in Singapore plays a big part in their business growths and successes. In Singapore, innovation has become an important part of digital transformation where 83% of SMEs have digital transformation strategies in place. Another key trend resulting from the COVID-19 pandemic is the surge in cloud adoption, with 62% of Singapore SMEs moving their businesses online for more efficient operations management and customer engagement. In a recent survey, it was found that Singaporean businesses allocate approximately 18% of their total IT budget for cloud services indicating that the adoption of cloud will be central in developing digitally-driven business models, with investments in the hybrid cloud predicted to hit 50% by 2023 from the current 42%.

With the shift away from traditional on-premise servers, SMEs are adopting a more holistic and secure IT infrastructure as they move towards digitalisation, implementing these basic IT infrastructures and solutions:

Cloud System Infrastructure Services (IaaS)

Utilising the cloud is much faster and far easier to set up than running an on-premise server. The ability to scale up or down on the cloud based on your business needs of the time provides the much-required agility that SMEs demand, allowing businesses to adapt to ever-changing demands. This optimises costs as you only pay based on your business’s demand. In contrast, on-premise servers require rental of space as well as regular maintenance and periodical system upgrades by subject matter experts, impacting capital expenditure (CAPEX) and overheads. As such, according to Gartner, 60% of the world’s business owners will be relying on the cloud for data hosting by 2022.

Cybersecurity Solutions

As SMEs digitalise their operations, the need for a robust cybersecurity arises. Compared to MNCs, SMEs need to be extra cautious as it is found that 43% of the cyber-attacks are targeted at SMEs, which further validates the need for SMEs to invest in cybersecurity to avoid vulnerability. To ensure end-to-end security, SMEs are enhancing cybersecurity policies with the following strategies:

• Setting protocols for accessing network, such as using VPNs for external system access, and setting more frequent mandatory password updates.
  
• Adopting network security systems to protect against illegitimate and malicious access, for example, a broadband shield to filter every incoming and outgoing traffic. In fact, Broadband Shield comes free with all StarHub Business Broadband subscriptions. This definitely keeps your business safe from cyber threats.

Productivity Tools

According to a recent survey by IndSights Research, nearly 7 in 10 Singapore SMEs were looking to increase or maintain budgets for productivity improvement through IT solutions. Such tools help your employees stay organised and accomplish business goals in the shortest time without being caught up in manual processes. For example, Microsoft 365 plans are not simply Word, Excel, and PowerPoint. It has a whole suite of collaboration apps that allow for easy file sharing among employees across various geographical locations. Communication apps such as Microsoft Teams enable employees on the same business network to communicate through messaging, voice, and video calls, as well as conduct presentations. As you sign up for Broadband Shield, you may also speak with StarHub for recommendations on a suitable Microsoft 365 plan as StarHub is an accredited Microsoft Gold Partner.

Fast and Reliable Connectivity

Currently, for operations to run even smoother and with lag-free experience, your digital strategies require 5G. 5G has brought about a paradigm shift since its rollout. It has been transforming businesses with its ultra-reliable low latency wireless connectivity, and massive capacity that connects a multitude of devices in real-time. With 5G’s network slicing capability, you can expect to have a dedicated mobile network without disruption to your business connectivity.  

Since the COVID-19 pandemic struck, it is clear technology has transformed businesses and will continue to do so. Implementing the right IT infrastructure helps businesses not only improve cost effectiveness and efficiency, but also innovate faster, collaborate more efficiently, and deliver more value with less effort.

Digital transformation may seem tricky to some of you, having to overcome challenges of managing a diverse IT landscape. With a minimal monthly fee, perhaps you could turn to Managed Service providers for the full support without expending extra internal resources or bearing the burden of additional infrastructure. StarHub can be your trusted service provider to help you accelerate your transformation with high service level agreement. Consider StarHub as your one-stop shop for all your connectivity, collaboration, security, and infrastructure needs.

Talk to StarHub today to explore and evaluate your business transformation.