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October 22, 2014

MSPs must adapt services to capitalize on Internet of things

Amsterdam and San Francisco--Roughly one in four (26 per cent) small- to medium-sized businesses (SMBs) and managed services providers (MSPs) expect the Internet of Things (IoT) including multiple devices, wearables, and cloud-based services in general to generate more money for them than any of the other current big IT trends, says a survey by  AVG Technologies N.V., an online security company for devices, data, and people.  Almost three out of five (57 per cent) SMBs agreed that IoT will help boost their revenues, a sentiment that was echoed by around two-thirds (67 per cent) of MSP respondents. However just 18 per cent of SMB respondents thought their IT provider was ahead of the curve regarding IoT management while 70 per cent of MSPs themselves admitted the need to adapt their services to meet customer expectations in this regard.

"Our MSP partners are telling us that the 'Internet of Things' is the one IT trend making an immediate difference to their bottom line and the business customers that they serve. A massive seven out of 10 stated they need to amend their offerings to enable business growth," says Mike Foreman, AVG's general manager, SMB.

The study also revealed more than half (55 per cent) of MSP respondents say customers are demanding Internet of Things related services and over three quarters (77 per cent) are planning to expand their service/product portfolio. However, they had better adapt quickly. Of those SMBs with an IT provider, 68 per cent feel that their provider could improve their service with regard to Internet of Things offerings and understanding.

"The study shows clearly that as businesses grow to rely more and more on the Internet of Things and Cloud-based services to help generate revenue most MSPs are still some way short of being ready to help customers manage this," continued  Mike Foreman. "The research strongly indicates that MSPs need to significantly up their game and demonstrate enhanced levels of protection and control over their customers' ever changing data and device needs."

A summary of the other key findings in the study were:

SMBs

  • Almost half (46 per cent) of SMBs think that the Internet of Things will be the IT trend that has the greatest impact on their organization over the next five years. An even higher proportion – around seven in ten (71 per cent) – say that due to the Internet of Things their organization will need to take extra steps to secure and protect their data

  • Around three fifths (62 per cent) of SMB respondents report that their organization has budget specifically assigned over the next 12 months for the development of Internet of Things solutions. Forty-nine per cent have a moderate or substantial budget assigned for these solutions.

  • Only 18 per cent of SMB respondents say that their IT provider is completely ahead of the curve with regard to the Internet of Things and the potential for their business. Of those with an IT provider, 68 per cent feel that their provider could improve their service with regard to Internet of Things offerings and understanding.

  • The majority (84 per cent) of SMB respondents say that their organization has purchased mobile devices within the last year, spending an average of over  $6,500 on these devices. Of those who have purchased mobile devices within the last 12 months, SMB respondents estimate that their organization spends an average of around  $4,500 in hidden costs annually.

MSPs

  • Over half (55 per cent) of MSP respondents state that customers are demanding Internet of Things related services and seven in ten (70 per cent but only 56 per cent  Germany) say that they will amend their services based on the wants of the customer.

  • However, less than two fifths (38 per cent) of MSPs say that their organization currently has an integrated remote monitoring and management platform.

  • Around three fifths (58 per cent) of MSP respondents say that they will need to join up with cutting edge partners in order to successfully offer Internet of Things-related services. Currently only 38 per cent of MSP respondents feel that the vendors they work with are cutting edge.

  • Furthermore around three in ten MSP respondents feel that their current vendor helps make efficiency savings (31 per cent) or productive gains (25 per cent) for their customers.

 

 

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