“Mid-market” economic growth across the U.S. is starting to take off, according to a recent Deloitte/EIU (Economist Intelligence Unit) study. Mid-market is defined as companies with revenues between $50 million and $1 billion. The survey found that 81% of respondents expect their revenues to grow in 2011. In addition, 34 percent of those surveyed are expanding globally, and 38 percent “expect to pursue financing to expand their businesses in the coming year.”
This is the fastest growing IT expansion segment of the U.S. economy, and they need resources now.
So, what does this mean for IT solution providers?
For starters, growing companies have more money (credit and cash flow) to improve their technology infrastructures and need the scale from new technologies to meet ongoing productivity, security and compliance demands.
When it comes to managed services, this market is virtually untapped. Most likely you’re already selling IT solutions to these businesses, therefore you’re ideally positioned to also supply their need for more IT resources and support. . These companies need IT resources now, you can position your company as their outsourced service provider, saving them thousands…in some cases millions in potential OpEx recruiting, salary and training expenses.
A punishing situation turned liberating
Here’s just one simple, niche-market example. A large NetEnrich solution provider partner that contracts with a state prison system supports prisons in the most undesirable of locations. Prisons are one of these “not in my backyard” enterprises that get tucked away beyond sight and beyond where any self-respecting IT person would want to work, let alone live.
Anyway, this partner can’t locate people to work inside these locations to support the prison’s IT infrastructure and technology needs. And, if they could find people, they would likely lose money on the rates it would require to pay and keep them there. What are they doing? They’re setting up NetEnrich remote managed services requiring rare visits to the physical location. If the hardware goes down and needs replacing, they simply ship the new box out and have a day-tripper support team make the onsite visit. No one has to live in East Nowhere and work at a prison every day. Now that’s a liberating solution to a scenario that could be a potentially punishing situation.
Remote management is key
NetEnrich “closet to cloud” infrastructure management services make it all happen. You have the freedom to manage technology remotely, regardless of where it exists. One end customer may have technology loaded up “in the cloud,” hosted in a data center, and existing on-premise as a local server – regardless of where the software and infrastructure exists, you can manage it remotely with NetEnrich.
NetEnrich’s unique Service Delivery Framework allows you to keep up with day-to-day developments and more easily handle system failures remotely, allowing your technicians to spend more time focusing on solution implementation or making office visits with your client.
If you don’t have enough technicians on staff, no problem. NetEnrich can provide you with the engineering expertise to manage the growing demands of unified communications, VoIP/telepresence, virtualization, mobility, storage and networking solutions.
Expand your business
Plus, you can quickly expand your business and gain margin with these kinds of services. Think about it. What could you do with more “virtual” people, better implementation processes and the ability to offer even more technology solutions to your customers? Without lifting a finger, you:
- Don’t have to walk away from deals involving technology you can’t support today, such as VMware, NetApp, Cisco or Juniper solutions
- Retain clients with a better service experience and add new recurring revenue
- Tap into the Mid-market by reducing your client’s capital expenditure and increasing their productivity through automation
That last point is critical. In a future post, we’re going to address CAPEX vs. OPEX issues and show you how to manage this for your customer’s benefit.
Ok – one last thing. If you’re interested in these topics and would like to learn more, we’ll be hosting a “Closet to Cloud” business building seminar in the near future. Stay tuned.
U.S. mid-market companies pull in $6.1 trillion in revenue, or 40 percent of the national GDP.
They also employ 24.6 million people.