Approximately 70 per cent of managed services providers still need to adapt services to properly take advantage of the Internet of Things (IoT) market opportunity, according to a new study research firm Vanson Bourne of Bershire, U.K.
Roughly 1-in-4 (26 per cent) SMBs and MSPs expect the 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, according to Vanson Bourne study sponsored by online security vendor AVG Technologies. 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.
The study interviewed 1,770 small businesses and MSPs in Canada, the U.S., the UK, Germany and Australia. It also found more than half (55 per cent) of MSP respondents say customers are demanding IoT 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 believe that their solution provider could improve their service with regard to IoT offerings and understanding.
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Mike Foreman, AVG’s general manager of SMB commented on the study saying it clearly shows 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.
Other highlights from the Vanson Bourne study:
- 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 organisation 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. 49 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.
- 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.