For Managed Services Providers, the Internet of Things (IoT) represents an incredible opportunity for expansion and increased profitability.
According to The VAR Guy, recent studies predict “IoT technologies will fuel managed services growth of 15.3 percent yearly between now and 2020.” The research also indicates that “MSPs will play an essential role in the adoption of IoT technologies because a vast number of connected IoT devices, which Cisco expects to reach 50 billion by 2020, will require them to manage IoT-related functions such as device management, connectivity, and network integration.”
MSPs that are willing to adjust components of their business and gear toward the IoT will be able to take on more projects involving enterprise and consumer mobility, while continuing to provide specialized services around “digitalization, government IT initiatives, and increased security spending,” according to the VAR Guy.
As the IoT continues to garner attention and push technology trends, it’s important for MSPs to take notice. According to The VAR Guy, there are five reasons MSPs should stop ignoring the Internet of Things:
1. Recurring Revenue: The IoT is low-hanging fruit for MSPs. For a managed services business, building on IoT trends can help MSPs transition their current business model to that of a recurring revenue system. This increase the likelihood of a steady and predictable cash flow, potentially increasing company longevity.
2. Managed Services: Take advantage of proven expertise. For Charles Cooper of MSPmentor, this means MSPs should capitalize on their knowledge of “building networks to bear on building a broader solution, which may require collaboration between manufacturers, software developers, consultants, and other partners.” As an MSP, providing solutions for the IoT should be a relatively straightforward transition for those who decide to take it on.
3. Cloud Opportunities: Much of the data circulating through the IoT does so through cloud services. As a result, as the IoT grows, so will the clients’ desire for the cloud. IoT presents immediate opportunities for MSP growth, and allows them to profit from previous professional experiences as managed services providers.
4. Security: MSPs that have selected security as their vertical of choice should be especially excited about the popularity of the IoT. Greater acceptance brings an increased demand for security solutions and protocols to help protect a device from any breach. There is growing need for managed security services resulting in more work for MSPs.
5. New Customers: The IoT allows MSPs to provide solutions for their current clients, but it also opens the door an entirely new group of customers: those businesses catering to the public consumer. New customers mean increased business and increased longevity.
The Internet of Things many not be a new concept, but it does open the door for new managed services business, and MSPs should capitalize on this incredible opportunity for growth and profitability.