IT Spend Shifts from Big Enterprise to SMBs, Says Pax8 CEO

In an exclusive fireside chat at Pax8 Beyond 2026 in Salt Lake City, Scott Chasin, CEO of Pax8, said that IT spending is notably shifting from large enterprises to small and medium-sized businesses (SMBs). Chasin noted that the total addressable market (TAM) for SMBs is expanding, creating significant opportunities for cloud distributors like Pax8.

Details

Chasin pointed out that SMBs are increasingly adopting cybersecurity and cloud computing solutions, driving demand for specialized distributors. He added that Pax8, which operates a cloud marketplace connecting vendors such as Microsoft (MSFT), CrowdStrike (CRWD), and Verizon (VZ) with SMBs, is experiencing strong growth in this segment.

Context

These remarks come as many large enterprises are optimizing spending and cutting costs, while SMBs are ramping up investments in digital transformation. Chasin believes this shift is reshaping the IT distribution landscape, making independent distributors more critical than ever.

What This Means for Investors

For investors, this trend may signal growing opportunities for companies like Pax8, as well as vendors targeting the SMB space such as Microsoft and CrowdStrike. However, competition in this segment is intense, and investors should monitor these companies' ability to maintain market share.