South African businesses are navigating one of the most complex operating environments in recent years. While the economy recorded modest growth of 0.4% in the final quarter of 2025, businesses continue to face sustained pressure from rising operational costs, constrained budgets, and the ongoing need to improve productivity in increasingly competitive markets.
For SMEs, the pressure is even more pronounced.
According to the 2025 Absa Small Business Growth Index, SMEs account for approximately 91% of formal businesses in South Africa, contribute around 34% of GDP, and support an estimated 11.4 million jobs. Despite their importance to the economy, many smaller businesses remain constrained by limited access to skills, capital, and technology enablement.
Yet digital transformation is no longer optional.
As AI-powered workplace tools, cloud platforms, and hybrid work models become increasingly embedded in modern business operations, SMEs are under growing pressure to modernise while simultaneously managing tighter budgets and greater operational risk.
This is reshaping how businesses approach technology investment.
“Businesses are becoming far more intentional about technology decisions,” says John Press, Surface Business Unit Head at Core Group.
“They are no longer looking only at upfront device cost. Businesses are becoming more deliberate about selecting technology that is secure, reliable, and built for long-term productivity, while also ensuring it is future-ready for the demands of an increasingly AI-driven workplace.”
This shift is also changing the role of reseller ecosystems.
Traditionally, resellers were viewed primarily as procurement channels or hardware suppliers. Today, however, they are increasingly acting as advisors, helping businesses align devices, software, deployment, security, and support services with real operational needs.
In difficult economic environments, this advisory role becomes significantly more valuable.
Many South African organisations are extending device refresh cycles in an effort to reduce costs. However, businesses are simultaneously prioritising fewer, higher-quality devices that can deliver stronger long-term performance and a lower total cost of ownership over time.
This is especially important as businesses prepare for the next wave of AI-enabled productivity.
According to Microsoft Work Trend Index, 82% of global business leaders believe this is a crucial year to rethink key aspects of strategy and operations through AI adoption. At the same time, Microsoft’s latest workplace research found that organisations are increasingly recognising that AI success depends not only on software adoption, but also on whether employees have the right tools and infrastructure to support these experiences effectively.
For many SMEs, however, navigating this shift independently can be overwhelming.
This is where reseller ecosystems create meaningful business value.
Modern reseller partners are helping businesses simplify complex technology decisions by providing integrated solutions tailored to specific workplace environments, whether remote, hybrid, or office-based. This includes device strategy, deployment, lifecycle management, cloud integration, security, and user enablement.
“Technology adoption is no longer just about supplying hardware,” says John Press.
“Businesses need partners who understand how their teams work and can recommend solutions that improve productivity, reduce complexity, and support long-term growth. That advisory capability is becoming one of the most important differentiators in the channel ecosystem.”
For SMEs in particular, reseller ecosystems also improve access to enterprise-grade technology through more flexible procurement approaches such as leasing models, bundled services, and device-as-a-service offerings. These models help businesses modernise without taking on significant upfront financial strain, while still ensuring employees have access to modern, secure, and AI-ready technology platforms.
Partnerships between Microsoft and Core Group play an important role in enabling this ecosystem by equipping reseller partners with the expertise, support, and enablement needed to deliver tailored workplace solutions at scale.
These ecosystems also create broader economic value beyond technology deployment alone. They support local skills development, business enablement, and digital adoption at a time when South Africa’s broader ICT sector continues to expand rapidly. According to industry analysis, South Africa’s ICT market is projected to grow from approximately US$42.8 billion in 2026 to over US$62 billion by 2031.
Ultimately, digital transformation in South Africa will not be driven by technology alone.
It will be driven by trusted partnerships that help businesses make smarter, more sustainable technology decisions in an increasingly complex and AI-driven world.