Roughly 1-in-4 (26 percent) SMBs and MSPs expect the Internet of Things (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 a new survey by AVG Technologies.
57 percent of SMBs agreed that IoT will help boost their revenues, a sentiment that was echoed by around 67 percent of MSP respondents. However, just 18 percent of SMB respondents thought their IT provider was ahead of the curve regarding IoT management, while 70 percent of MSPs themselves admitted the need to adapt their services to meet customer expectations in this regard.
“Our MSP partners are telling us that the ‘Internet of Things’ is the one IT trend making an immediate difference to their bottom line and the business customers that they serve. A massive 7 out of 10 stated they need to amend their offerings to enable business growth,” says Mike Foreman, AVG’s general manager, SMB .
The study, which interviewed 1,770 small businesses and MSPs in the U.S., Canada, the UK, Germany, and Australia, also revealed more than half (55 percent) of MSP respondents say customers are demanding Internet of Things related services and over three quarters (77 percent) are planning to expand their service/product portfolio. Of those SMBs with an IT provider, 68% feel that their provider could improve their service with regard to Internet of Things offerings and understanding.
“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,” continues Foreman. “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.”
A summary of the other key findings in the study were:
SMBs
- Almost half (46%) 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%), say that due to the Internet of Things their organization will need to take extra steps to secure and protect their data.
- Around three fifths (62%) 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% have a moderate or substantial budget assigned for these solutions.
- Only 18% 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% feel that their provider could improve their service with regard to Internet of Things offerings and understanding.
- 84% 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.
MSPs
- Over half (55%) of MSP respondents state that customers are demanding Internet of Things related services and seven in ten (70% but only 56% Germany) say that they will amend their services based on the wants of the customer.
- However, 38% of MSPs say that their organization currently has an integrated remote monitoring and management platform.
- 58% 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% 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%) or productive gains (25%) for their customers.
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