Cloud adoption is on the rise among SMBs. In fact, Cisco recently forecasted that cloud spending in small and medium businesses will reach $16B in 2015 growing from just under $5B in 2010. SMBs are increasingly using Software-as-a-Service (SaaS) and cloud-based technologies for file storage, e-mail, unified communications, and security, and this has opened up new opportunities for solution providers to make a bigger play in IT services management.
As 2013 comes to a close, it is time to start thinking about what the IT services landscape will look like in 2014, and NetEnrich’s Senior Vice President and General Manager, Justin Crotty has “Five IT Services Predictions”:
- IT Service Management will drive differentiation for solution providers – NOT specific offerings. How you choose to manage the solutions and provide customer experience will be what sets you apart from your competition.
- IT Management complexity will continue to rise. Cloud and hybrid environments will require sophisticated and flexible IT management capabilities.
- There will continue to be a shift from “aggregation” of solutions to “value derived” from those solutions. A line card of offerings is not going to get the job done – driving value and client experience via those offerings is the key ingredient that will drive margins for solution providers.
- “Do-It-Yourself” models will continue to erode margins and prevent scale. The increasing competition and commoditization of these offerings will force efficiencies and reliance on partners.
- Acquisition will continue at a robust pace. Companies simply cannot hit growth targets via organic growth and must look for acquisition targets. Valuation will always be driven by quality of revenues (recurring) and profitability. The strong providers will get strong valuations.
NetEnrich is currently helping hundreds of solution providers grow their recurring revenues, support a broad-range of technologies, effectively utilize their technical staff, drive greater profitability from their client engagements, scale their services revenues, and increase client entanglements, and we can help you take advantage of opportunities that are available to you to capitalize on IT services management in 2014.
Join NetEnrich and Ingram Micro for a deeper dive into Justin Crotty’s “Five IT Services Predictions for 2014″ during a Webinar coming up on Wednesday, December 4, 2013 at 9am (PT)/Noon (ET). To register online visit http://bit.ly/1aTLxxi.