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94 SMT007 MAGAZINE I APRIL 2024 SMBs are under pressure to adopt new tech- nologies and expand their product portfolios. A key reason for this is that the electronics industry is highly competitive, and SMBs must continuously innovate and offer unique prod- ucts and services to survive and thrive. A 2019 report on U.S. SMBs noted that more than 80% used digital tools for internal management and logistics, to improve busi- ness processes and productivity 9 . Examples of these tools are cloud-based soware solutions, enterprise resource planning (ERP) soware, and proprietary soware to connect sales with supply chain operations. However, SMBs face many challenges. ey oen lack the financial resources and the econ- omies of scale that larger businesses have. As a result, they may find it difficult to compete against large enterprises. In addition, SMBs may have difficulty accessing the latest technol- ogy and tools due to their cost and the resources required to onboard them. ey may also strug- gle to attract and retain qualified employees. Market Trends for Adoption of Cloud-based Tools e market for cloud-based tools is grow- ing, with businesses of all sizes adopting these tools to improve their efficiency, agility, and productivity. Indeed, use of cloud computing is nearly ubiquitous. An international survey conducted by O'Reilly in July 2021 found that 90% of companies are using cloud comput- ing, up from 88% in 2020 11 . ere are a few key enablers to the trend: 1. Cloud-based tools require no on-premises installation or integration, eliminating a significant burden on information technol- ogy (IT) and administration staff. 2. Cloud-based tools are becoming more user-friendly, making them easier for busi- nesses to adopt. 3. e cost of cloud-based tools is dropping, making them more affordable for busi- nesses. Some of the cost decreases are the natural result of technologies maturing. However, a major element in their grow- ing affordability is lower operational costs that come with experience in using cloud- based tools. A 2020-2021 study found that for companies requiring fewer than 1000 licenses of Unified Communications as a Service (UCaaS) cloud-based soware tools, the annual total spend per license was about 37% cheaper than it would be for each on-premises license. is takes Figure 3, 4: SMBs' top barriers to adopting digital tools 10 .