Here at Presh Marketing Solutions, we’re constantly reviewing industry articles, blogs, research reports and white papers, podcasts, and videos all in an effort to remain up to date on the movements of the IT channel. We’ve noticed a few key trends that may affect your MSP or VAR business. Here’s a quick preview of what we’ve learned during the first half of 2018:
IT buying decisions are being made at the line of business (LOB) level for more than half of technology consulting, hardware, and services buying engagements.
Digital transformation has become a company-wide initiative for progressive firms, and early results show the efforts are profitable.
Artificial Intelligence (AI), IoT, and Blockchain technologies lead the pack in terms of spending on cutting-edge solutions for enterprises.
Security drives technology decision making for many firms, yet they don’t have the internal resources to properly harden networks against breaches.
In all four trends. we’ve found these findings to expand across major verticals with the security play for MSP or VAR solutions being strongest among heavily regulated industries such as healthcare, finance, and law. Resistance to new technology appears to be diminishing among progressive firms and rates of adoption, especially for AI solutions, are popular among CIOs at forward-thinking firms.
Here’s how these trends may have positive effects on your MSP or VAR business:
LOB spending is growing at a faster rate than IT spending according to IDC’s “Worldwide Semiannual IT Spending Guide: Line of Business” report. LOB spending will grow by 6.9 percent between 2016 and 2021, whereas IT spending will grow by 3.3 percent during the same period.
Sales Opportunity for MSPs and VARs: The rapid growth in spending power isn’t equal to strategic understanding of which solution a department truly needs to grow the business. Departments desperately need guidance on where it’s best to spend their budgets so they can meet their goals. That’s where you come in. But this new development will require management and a strong understanding of the inner workings of an organization. Here’s why:
Your role in situations like these may be to bridge the skills gap where IT wants to provide strategic IT support to departments, but internal resources are spread too thin.
One more stat to keep in mind: The global market for IT spending will reach $1.67 trillion by the end of 2018, says IDC. Just about half (49.5 percent) of that spending will emanate from LOB engagements. This requires IT solutions providers to navigate relationships and political structures within their customers’ organizations to ensure LOB solutions are successful.
As with any organizational change, exponential growth in change comes from the top executives. It’s no different in the case of digital transformation with 47 percent of CEOs stating they’re receiving pressure from their board of directors to digitize business operations, according to findings from research firm Gartner.
Sales Opportunity for MSPs and VARs: Rolling out digital innovation often falls at the feet of the CIOs of the organizations you’re currently working with (or targeting). Assisting firms in developing clarity around digital transformation may tale:
The silver lining is digital transformation is so necessary and has been ignored for so long by many organizations that even the simplest digital initiative can produce small wins upon which a firm can build a track record of success for innovation. In Gartner’s recent survey, 56 percent of CEOs stated their efforts in digitization have increased profits.
One of the major growth areas for technology solutions is security. We mentioned this in a previous post and it bears mentioning again because the opportunity is so clear for IT solutions providers. The market size for managed security services will hit 47.65 billion by 2023 at a compound annual growth rate of 14.7 percent, says research firm Market and Markets.
Sales Opportunity for MSP: A key point to remember when offering this service is firms are essentially looking to transfer risk, especially CIOs who are often charged with security networks. The key sales positioning is you’re allowing firms to transfer the risk of a security breach to experts, that’s you. Many MSPs wonder if it’s worth the investment to provide SOC for clients. With stories of breaches peppering the news daily, the media is doing the job of risk awareness for you. Consider offering education to your existing customers and leads about how other firms are addressing security challenges.
Establish your firm as the go-to resource for all things security by providing thought leadership though:
If these marketing options sound a tall order, you’d be right. You’ll need assistance in turning these ideas into reality. That way you can focus on growing your customer base and serving your existing clients. Let’s discuss ways your firm can leverage the shifts in the IT channel to your advantage through a thoughtful and effective digital marketing strategy.