MSP Today Expert Feature
October 22, 2014

MSPs Need to Step Up IoT Service Offerings to Meet SMB Demand

The Internet of Things (IoT) is at the top of most technology business agendas when it comes to planning for the future, and MSPs and their SMB customers are especially banking on the trend. The IoT, which generally covers connectivity and cloud-based services delivered through a variety of devices and wearable computing, is expected to translate to big bucks for those offering managed services as well as their customers.

According to a new survey from AVG Technologies (News - Alert), around 26 percent of MSPs and SMBs expect the IoT trend to generate more money for their businesses than other IT trends. And, 67 percent of MSPs believe the IoT will boost their overall revenues, along with 57 percent of SMBs.

But MSPs need to step up their game when it comes to accommodating their small business customers’ needs surrounding IoT. Of those MSPs queried, 70 percent confessed they need to adapt their service offerings to meet the demands of customers surrounding IoT. And of their SMB customers, only 18 percent said they felt their service providers were ahead of the curve when it comes to IoT management.

"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," said Mike Foreman, general manager, SMB for AVG. "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."

The survey, conducted through market research firm Vanson Bourne, consisted of 1,770 MSPs and SMBs throughout the U.S., Canada, the U.K., Germany and Australia. Of the MSPs queried, 55 percent said their customers are demanding IoT services and 77 percent have plans to expand their offerings to meet those demands.

The main theme of the findings was that SMBs believe their service providers need to take action to meet the demands and requirements of the IoT trend. And while 62 percent of those SMB customers have budget specifically assigned to developing IoT solutions, 68 percent feel their MSPs could improve services surrounding IoT.

Edited by Maurice Nagle