How SMBs Can Lead, Not Lag, in the Age of AI and Cloud

Small and mid-sized businesses (SMBs) often feel outpaced by larger enterprises when it comes to adopting cutting-edge technologies like AI and cloud computing. But the truth is, these tools aren’t just for the big players anymore.  

With the right strategy and support, SMBs can leverage AI and cloud solutions to drive innovation, streamline operations, and compete on a whole new level. 

In this Expert Opinion feature, Ace Cloud Hosting spoke with Laurie McCabe, co-founder and partner at SMB Group. With over 30 years in the IT industry, Laurie has helped small and mid-sized businesses understand what they truly need from technology.

Before founding SMB Group in 2010, she held leadership roles at Hurwitz & Associates, AMI-Partners, and Summit Strategies, earning widespread recognition for her practical insights into the SMB technology market. 

In this expert Q&A, Laurie McCabe shares how AI and cloud are reshaping the way SMBs operate. She highlights the emerging technologies that are most promising and what small and midsize businesses can do today to stay ahead and succeed in the constantly changing tech landscape. 

Q1. What are the biggest misconceptions SMBs have about AI and cloud, and how can they shift their mindset from lagging to leading in this transformation? 

SMBs can move from lagging to leading by challenging myths head-on. They often believe that AI will replace employees outright. But in reality, AI is much more likely to automate repetitive, rule-based tasks instead of replacing entire roles. 

AI helps with data entry, bookkeeping, and simple customer responses to help teams focus on strategy, client service, and higher-value tasks. As a result, SMBs can shift to more valuable and creative tasks.

While many SMBs have embraced the cloud, another myth that continues to linger is that migrating to the cloud is too complex and expensive. But software-as-a-service, hybrid, and multi-cloud models offer scalable, pay-as-you-go flexibility that can be much more cost-effective than running on-premise systems. 

SMBs can start with low-risk pilots or migrate individual applications, even syncing with on-premises systems. The key is working with trusted providers who offer tailored guidance to streamline the transition and any necessary integrations, control costs, and help SMBs manage, monitor, and optimize their cloud environments for performance, cost-efficiency, and compliance. 

Q2. What emerging AI and cloud trends should SMBs watch, and how can they position themselves as forward-thinking businesses? 

AI has moved beyond the experimental stage for SMBs; it’s actively shaping how they prioritize tech investments. 27% of SMBs said they’re accelerating their technology spending because of AI. And that’s not just about automating tasks. For many, especially those with 20+ employees, it’s about using AI to drive smarter decisions, improve customer engagement, and uncover new business opportunities.

Source: 2025 Top 10 SMB Technology Trends, SMB Group 

We’re also seeing real changes in how SMBs evaluate solutions. Generative AI is playing a surprising role here as 25% now use it as a key source for product research, right alongside search engines and vendor websites. That tells us SMBs are looking for more intuitive, personalized experiences in the buying journey. However, to fully capitalize on these trends, cloud adoption is essential.   

Many SMBs are already opting for hybrid or cloud-first models. However, you simply can’t take advantage of most AI tools if your apps and data are still stuck in legacy systems. Modernizing infrastructure, cleaning up data, and working with partners who understand both AI and SMB needs make forward-thinking businesses stay relevant, agile, and ready for what’s next. 

Q3. As SMBs move to the cloud and AI, what are the key cybersecurity and compliance risks, and how can they effectively address them? 

Cybercriminals know where to look, and more often, they’re looking at SMBs. In our research, 27% of SMBs reported a cyberattack in the past two years. These businesses often lack the in-house expertise or dedicated resources to defend against modern threats. 

What used to be just malware and phishing has now evolved into AI-generated deepfakes, ransomware-as-a-service, and attacks targeting remote access points like unsecured home networks, VPNs, and RDP. 

That’s why SMBs are under increasing pressure to meet complex regulatory compliance standards like HIPAA, GDPR, SOC 2, and ISO 27001. Meeting these requirements takes more than just policy updates. SMBs should opt for AI-driven security platforms such as real-time intrusion detection systems (IDS), SIEM tools, and advanced endpoint protection.  

These solutions help automate threat detection and reduce exposure to insider risks and unauthorized access. Moreover, businesses should adopt identity and access management (IAM), enforce multi-factor authentication, and increase offline backup investments to limit damage from ransomware.

Source: 2025 Top 10 SMB Technology Trends, SMB Group 

Q4. With limited resources and expertise, how can SMBs overcome challenges such as talent gaps, integration complexity, and budget constraints when adopting AI and cloud? 

SMBs don’t need to start big to benefit from AI and cloud. Many are using low-code tools or built-in automation features to ease adoption. These tools reduce the need for deep technical skills and allow teams to experiment, learn, and build AI literacy over time.  

As I mentioned, AI is reshaping employee roles, freeing staff from repetitive tasks and helping them focus on insights, strategy, and customer engagement. But SMBs do need to put a strategy in place to reskill and upskill employees for this shift.

SMBs often work with managed cloud service providers like Ace Cloud Hosting or use AI-as-a-Service platforms to manage integration and budget challenges. These partners handle setup, data cleanup, and ongoing support, making it easier to get started without large investments. Starting with one or two high-impact use cases helps SMBs show value early, gain buy-in, and scale at their own pace. 

Q5. How can SMBs measure the real impact of their AI and cloud initiatives to ensure they are delivering tangible business value? 

SMBs should start by tying AI and cloud adoption to specific business goals, such as  faster service delivery, improved collaboration, reduced costs, or higher customer satisfaction. That way, success is easier to track. For example, if teams use AI for real-time meeting summaries or predictive analytics, leaders should measure gains in productivity, decision speed, or project turnaround time. 

Tools that centralize communication, streamline collaboration, and automate routine tasks often show results quickly. SMBs can track key performance indicators like time saved, fewer errors, or higher engagement across distributed teams. The real value shows up when AI helps teams work smarter and customers notice the difference. That’s when AI moves from a cost to a competitive edge. 

Managed service providers can often provide SMBs with dashboards to help them more easily track and measure key performance indicators (KPIs).

Lead the Change – Outpace Competitors with AI & Cloud 

Laurie McCabe believes SMBs must lead with intention instead of just following trends. AI and cloud are changing how businesses operate, but success depends on smart adoption, strong leadership, and the right people in place. As SMBs take advantage of these technologies, they gain the agility to outpace competitors and capture new opportunities. 

Many SMBs are turning to virtual desktops to support secure and efficient remote work. As SMBs build distributed teams, VDI helps centralize apps and data in the cloud while keeping systems secure and compliant. Trusted providers like Ace Cloud Hosting offer SMBs secure and high-performance cloud-based virtual desktops without adding complexity. 

Have you taken steps to modernize your tech stack? We’d love to hear how your team is approaching AI and cloud this year.