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2026 IT Predictions: What Small and Medum-Sized Businesses Should Prepare For

michael@365tech.ca|Jan 6, 2026
2026 IT PREDICTIONS What Small & Medium-Sized Businesses Should Prepare For

As we celebrate the new year, we’ve been thinking about how busy the tech industry has been over the last few years, and it has no signs of slowing down. The internet is filled with opinions on what you should be doing as a business owner, often contradicting one-other.

According to SQ Magazine, cybercrime is projected to cost businesses over $11 trillion globally by 2026, AI adoption is everywhere and it’s getting difficult to understand just how to protect you and your business. As a small to medium-sized business owner, it’s the tough decisions you make now that will determine how well you thrive in 2026, or whether you’ll scramble to keep up and stay protected.

We thought we would kick off the new year by diving into seven of our IT predictions for 2026 and what this means for you.

Prediction #1: Cybersecurity Will Be Non-Negotiable

Cybercrime is growing at a pace that’s hard to wrap your head around. Small and medium-sized businesses remain a favourite target (45% of all attacks affect SMBs) because cybercriminal know smaller organizations often lack the same defenses are big corporations.

A single breach can lead to downtime, lost revenue and reputational damage that’s hard to recover from. With cyber insurance providers tightening the requirements, businesses without the appropriate security measures may find themselves uninsurable. Most cyber liability insurance policies will expect to see Multi-Factor Authentication (MFA) on all business accounts, up-to-date firewalls and anti-malware tools, secure password policies, regular backups and tested recovery processes and a documented incident response plan to name a few. Is your business prepared for this?

What can you do? Start with the basics above. Layer on advanced protections like endpoint detection and identity threat monitoring, and don’t forget your people: security awareness training is one of the most effective ways to prevent attacks before they happen.

Prediction #2: AI Will Change How You Work

It’s not news to hear that AI is becoming a part of everyday business life. From automating repetitive tasks to providing intelligent insights, AI solutions are streamlining workflows and helping teams operate more efficiently. Businesses are increasingly adopting AI-powered tools to boost productivity, improve customer service, and make data-driven decisions. By integrating these technologies, small and medium-sized businesses can stay competitive and agile in a rapidly changing marketplace.

Prediction #3: AI Will Also Change How You Protect Your Business

The rise of AI isn’t limited to productivity gains—cybercriminals are leveraging AI as well. Sophisticated phishing emails and deepfake scams are becoming more convincing, making them harder to detect and avoid. If your team isn’t prepared, a single click on a realistic email could expose sensitive data and disrupt operations. AI-driven attacks are faster, smarter, and more elusive than ever before.

The best defense is to build awareness and confidence. Regular security training keeps employees alert to new threats, while a well-planned onboarding process for AI tools ensures your team uses these technologies safely. Make sure AI strengthens your security posture, and don’t let it become a vulnerability.

Prediction #4: Cloud Reliance Will Skyrocket

More businesses are moving away from on-prem servers and embracing cloud solutions. Here’s a common misconception: cloud does not mean backup. When you hear cloud, does your thought automatically go to online collaborative work? Of course, this is an important piece of working with the cloud, but in this case, we’re talking about the cloud as protection. Accidental deletions, ransomware, sync errors…

If you’re relying on “Microsoft backs that up” as your recovery plan, you’re just a click away from losing data. A solid backup strategy is essential to keep your data safe and your business running smoothly.

Consider cloud solutions that offer frequent backups, long-term retention, and quick restores. It’s not about adding complexities, but ensuring peace of mind if the unexpected happens.

Prediction #5: The Break/Fix Model Will Disappear

Are you waiting for something to break before fixing it? The reactive IT approach is on it’s last legs: it’s too slow, too expensive, and too risky for today’s fast-paced business environment. Small and medium-sized businesses are demanding predictable costs and proactive strategies, and for good reason.

Downtime doesn’t just frustrate employees; it costs money and erodes customer trust. A proactive, all-inclusive approach means fewer surprises, better planning and IT that supports your growth instead of holding it back.

If you haven’t already, start thinking about IT as a long-term partnership rather than a quick fix when something comes up. Regular maintenance, monitoring and strategic planning will save you headaches, and dollars, in the long run.

Prediction #6: Hybrid Work Isn’t Going Anywhere

The pandemic may have sparked the remote work revolution, but hybrid work is here to stay! Teams are distributed, and communication tools need to keep up… this is no longer a trend; it’s the new normal.

Poor communication doesn’t just slow things down, it impacts internal productivity and customer experience… that can be a deal-breaker in a competitive market.

To thrive, invest in tools that make collaboration seamless: secure video conferencing, reliable VoIP phone systems, and platforms that keep everyone connected no matter where they are. It’s about creating an environment where your team can do their best work, wherever they’re working from.

Prediction #7: Local Matters More Than Ever

In a world of global tech giants and outsourced support, local partnerships are becoming more valuable. Why? Because when something goes wrong, you don’t want to wait on a call centre that’s three time zones away. You want someone who knows and understands your business and can show up when you need them.

Consolidation in the IT industry means that many providers are being scooped up by multinational corporations and that can often lead to slower support, less flexibility and zero community connection.

Choosing local isn’t just hype; it’s about trust, accountability, and keeping dollars in our own communities. If something goes wrong, having a partner that understands your world makes all the difference because we’re just as invested in your success as you are, together.

2026 isn’t waiting for anyone; in fact, it’s already here! These trends are already shaping the way many businesses operate, and the question isn’t whether they’ll impact you, it’s how prepared you’ll be.

Start small: review your security practices, talk to your team about your AI options, and make sure your backup strategy is solid. Then you can think bigger: how can technology help you not just keep up, but scale alongside your growing business?

365 Technologies is here to help support your business. Whether you’re looking for some guidance or you’re ready for the next steps, we’d love to hear from you!

michael@365tech.ca