Channel
Bytes
Accelerating Managed Services
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
On Tap For Today
 The channel’s attraction...
WHY MANAGED SERVICES?
3
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
Why is the Channel Transitioning to Managed...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
Channel’s Level of Expertise with Managed S...
AND YET…
6
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
The Reality: Growth of Managed Services Not...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
Technology’s Stature Growing for All Size C...
18
%
56
%
26
%
Market Offers Myriad Ways to Manage Technology
Satisfaction Levels with Current IT
Management Methods
 For...
MAPPING TO CUSTOMER
PRIORITIES
10
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
End User Strategic Business Priorities for ...
Improve security
Proactive approach to IT problems
Better uptime
Gain access to newer
technologies
Cost savings over in-ho...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
End User Main Decision Priorities in Choosi...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
SLA Elements Deemed Most Important by Users...
THE NEW IT BUYER, UPSELLING AND
PRICING
15
Tailoring the Sales Conversation to Right Buyer
4%
21%
27%
48%
Other
Committee comprised of
IT and non-IT executives
Non-I...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
Further Proof: IT Channel Firms Also See Sh...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
IT Functions at Top of List to Move to Mana...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
Pricing Trends for Managed Services Today
M...
Information That Would Improve Managed Services Process
1
2
3
4
5
6
7
8
More quantifiable ROI
Clarity on types/frequency
o...
Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org 21
Carolyn April
capril@comptia.org
For mor...
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Accelerating Managed Services

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Led by CompTIA Market Research, learn about the IT channel’s attraction to managed services, managed services adoption to date, and customer priorities and demands.

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Accelerating Managed Services

  1. 1. Channel Bytes Accelerating Managed Services
  2. 2. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org On Tap For Today  The channel’s attraction to managed services  Managed services adoption to date  Customer priorities and demands 2
  3. 3. WHY MANAGED SERVICES? 3
  4. 4. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org Why is the Channel Transitioning to Managed Services? MARKET FACTORS1 TECHNOLOGY FACTORS2 MODEL FACTORS3 • Economic factors • Competition / commoditization • Shifting expectations • Alternative delivery models • Mobile business capabilities • Emerging technologies • Declining margins  complexity • Engagement type / cash flow • Operational excellence
  5. 5. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org Channel’s Level of Expertise with Managed Services Model 10% 52% 39% Early on Learning Curve/Too Soon to Tell Skilled Expert Competent and Getting Better Self-Assessed Characterization “Skilled Experts” in Managed Services by Size Source: CompTIA’s Trends in Managed Services Operations study Base: 198 U.S. Managed Service Providers 71% Large firms ($50M and up in revenue) 30% Medium-sized firms ($5M-$49.9M) 25% Small firms (Less than $5M) HALF of channel firms report doing some managed services in last year.
  6. 6. AND YET… 6
  7. 7. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org The Reality: Growth of Managed Services Not Soaring “Managed services is a model of outsourcing all or parts of IT functions to an outside firm through an ongoing contractual relationship, such as a recurring monthly fee. The MSP assumes responsibility for the proactive management, monitoring and maintenance of the IT functions or systems covered by the service level agreement (SLA).” Just 3 in 10 end users report using managed services for some or all of their IT
  8. 8. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org Technology’s Stature Growing for All Size Companies Trending of VERY IMPORTANT Rating of Technology by Firm Size 48% 36% 59% 65% 55% 71% <50 employees 50-99 employees 100+ employees 2014 2016 Projection 9% 43% 49% NET somewhat important / not that important Important Very important Rating of Overall Importance of Technology to Business Success Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses (end user) NET importance = 92%
  9. 9. 18 % 56 % 26 % Market Offers Myriad Ways to Manage Technology Satisfaction Levels with Current IT Management Methods  Formal IT department with dedicated staff  Informally handled among non-IT staff  Periodic use of outside firms/third parties for various projects and/or troubleshooting  Outsourcing/contractual arrangement with a managed services provider for ongoing responsibility for some or all of IT functions Chief Ways IT is Handled Within Businesses Today Very Satisfied Mostly Satisfied NET At Least Somewhat Dissatisfied Companies that underwent a reduction or elimination of in- house IT staff due to contracting with an MSP recorded the highest percentage of “very satisfied” responses. Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses (end user)
  10. 10. MAPPING TO CUSTOMER PRIORITIES 10
  11. 11. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org End User Strategic Business Priorities for Next 12 Months 16% 34% 37% 42% 50% 52% 56% Managing competitive threats Improving operational efficiency Innovating more effectively Improving data analytics for better/faster decisions Reaching new customer segments Improving staff productivity/capabilities Reducing costs/overhead Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses (end user)
  12. 12. Improve security Proactive approach to IT problems Better uptime Gain access to newer technologies Cost savings over in-house IT 1 2 3 4 6 7 8 9 5 10 Peace of mind Free internal staff for strategic work Tap into cloud solutions Lack of internal IT Handle remote office IT Top 10 Factors Driving Managed Services Adoption Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
  13. 13. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org End User Main Decision Priorities in Choosing an MSP 1 Proof of expertise/skills by MSP Proof of experience by an MSP Opportunity to speak to other MSP customers Better insights into the hand off between MSP and internal IT Easier to understand service level agreement (SLA) 2 3 4 5 Source: CompTIA’s Trends in Managed Services study Base: 273 managed services users
  14. 14. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org SLA Elements Deemed Most Important by Users 9% 14% 14% 20% 32% 55% 61% 63% Service cessation provisions Perfomance targets Time and material model Base fee with optional services available to add/remove at anytime Business continuity/operational backups Response times Data security/privacy 24/7 support Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
  15. 15. THE NEW IT BUYER, UPSELLING AND PRICING 15
  16. 16. Tailoring the Sales Conversation to Right Buyer 4% 21% 27% 48% Other Committee comprised of IT and non-IT executives Non-IT executive, such as CFO, COO, General Manager, etc. CIO or other senior IT staff Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way Who’s Driving the Move to a Managed Services Contract?
  17. 17. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org Further Proof: IT Channel Firms Also See Shift in Purchasing Authority Going to Business Executives IT Firm Assessment of Shifts in Purchase Authority 10% 36% 44% 11% Don't know No change – expect CIO/IT dept. to continue as primary IT purchase authority Modest change Significant change – expect noticeable shift in purchase authority to business executives Actions Taken by IT Firms to Address Shifts in Purchase Authority Source: CompTIA 2014 Industry Outlook | Base: 525 executives at U.S. IT firms 38% Focus less on HW/SW specs and more on total solutions 35% Training to better equip sales staff to sell solutions to business executives 34% Better align solutions to meet business needs and technical requirements 32% Use of social media platforms to target business executives 25% Redesign marketing collateral with more of a business user focus
  18. 18. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org IT Functions at Top of List to Move to Managed Services 27% 27% 28% 29% 31% 34% 36% 38% Application monitoring Business continuity/disaster recovery Web site design Database management Help desk/IT support Network administration/maintenance Web site hosting Security (firewalls/antivirus) Source: CompTIA’s Trends in Managed Services study Base: 273 managed services users
  19. 19. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org Pricing Trends for Managed Services Today Managed Services Pricing 31% By user consumption 22% Fixed recurring fee 20% Per user 19% Varies based on customer 9% Per device Source: CompTIA’s Trends in Managed Services Operations study Base: 198 U.S. Managed Service Providers 1 2 3 Negotiate terms on customer-by- customer basis Keep pricing the same unless new services added Increase pricing based on set formula or metric Contract Renewal Pricing Procedures
  20. 20. Information That Would Improve Managed Services Process 1 2 3 4 5 6 7 8 More quantifiable ROI Clarity on types/frequency of activity reporting Clarity in branding for search purposes More options to alter or waive contract if things go wrong Easier to understand/ negotiate SLA Better insights into handoff with internal IT Proof of experience (customer refs) Proof of expertise (certifications, credentials) Source: CompTIA’s 3rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
  21. 21. Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org 21 Carolyn April capril@comptia.org For more information, contact: Thank You

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