Channel Bytes. Accelera'ng Managed Services
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1 Channel Bytes Accelera'ng Managed Services
2 Housekeeping Webinar is being recorded. Slides and recording link will be available tomorrow.? Contact informa8on is provided at the end of the webinar. #channelbytes 2
3 On Tap For Today The channel s alrac8on to managed services Managed services adop8on to date Customer priori8es and demands Copyright (c) 2014 CompTIA Proper8es, LLC. All Rights Reserved. CompTIA.org 3
4 WHY MANAGED SERVICES? 4
5 Why is the Channel Transi'oning to Managed Services? 1 MARKET FACTORS Economic factors Compe88on / commodi8za8on ShiSing expecta8ons 2 TECHNOLOGY FACTORS Alterna8ve delivery models Mobile business capabili8es Emerging technologies 3 MODEL FACTORS Declining margins è complexity Engagement type / cash flow Opera8onal excellence
6 Channel s Level of Exper'se with Managed Services Model Self- Assessed Characteriza'on Skilled Experts in Managed Services by Size 71% Large firms ($50M and up in revenue) 52% 30% Medium- sized firms ($5M- $49.9M) 39% 25% Small firms (Less than $5M) 10% Early on Learning Curve/Too Soon to Tell Competent and GeYng BeLer Skilled Expert HALF of channel firms report doing some managed services in last year. Source: CompTIA s Trends in Managed Services Opera1ons study Base: 198 U.S. Managed Service Providers
7 AND YET 7
8 The Reality: Growth of Managed Services Not Soaring Managed services is a model of outsourcing all or parts of IT func1ons to an outside firm through an ongoing contractual rela1onship, such as a recurring monthly fee. The MSP assumes responsibility for the proac1ve management, monitoring and maintenance of the IT func1ons 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
9 Technology s Stature Growing for All Size Companies Ra'ng of Overall Importance of Technology to Business Success NET importance = 92% Very important 49% Trending of VERY IMPORTANT Ra'ng of Technology by Firm Size 48% 65% Projec'on 55% 59% 71% Important 43% 36% NET somewhat important / not that important 9% <50 employees employees 100+ employees Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses (end user)
10 Market Offers Myriad Ways to Manage Technology Sa'sfac'on Levels with Current IT Management Methods Chief Ways IT is Handled Within Businesses Today Very Sa8sfied Mostly Sa8sfied NET At Least Somewhat Dissa8sfied 26% 56% 18% Companies that underwent a reduc8on or elimina8on of in- house IT staff due to contrac8ng with an MSP recorded the highest percentage of very sa8sfied responses. Ø Formal IT department with dedicated staff Ø Informally handled among non- IT staff Ø Periodic use of outside firms/third par8es for various projects and/or troubleshoo8ng Ø Outsourcing/contractual arrangement with a managed services provider for ongoing responsibility for some or all of IT func8ons Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses (end user)
11 MAPPING TO CUSTOMER PRIORITIES 11
12 End User Strategic Business Priori'es for Next 12 Months Reducing costs/overhead Improving staff produc8vity/ capabili8es Reaching new customer segments 52% 50% 56% Improving data analy8cs for beler/ faster decisions 42% Innova8ng more effec8vely 37% Improving opera8onal efficiency 34% Managing compe88ve threats 16% Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses (end user)
13 Top 10 Factors Driving Managed Services Adop'on 1 Improve security 6 Peace of mind 2 Proac8ve approach to IT problems 7 Free internal staff for strategic work 3 BeLer up8me 8 Tap into cloud solu8ons 4 Gain access to newer technologies 9 Lack of internal IT 5 Cost savings over in- house IT 10 Handle remote office IT Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
14 End User Main Decision Priori'es in Choosing an MSP 1 Proof of exper8se/skills by MSP 2 Proof of experience by an MSP Opportunity to speak to other MSP customers BeLer insights into the hand off between MSP and internal IT Easier to understand service level agreement (SLA) Source: CompTIA s Trends in Managed Services study Base: 273 managed services users
15 SLA Elements Deemed Most Important by Users 24/7 support Data security/privacy Response 8mes 55% 63% 61% Business con8nuity/opera8onal backups 32% Base fee with op8onal services available to add/remove at any8me Time and material model Perfomance targets Service cessa8on provisions 20% 14% 14% 9% Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
16 THE NEW IT BUYER, UPSELLING AND PRICING 16
17 Tailoring the Sales Conversa'on to Right Buyer Who s Driving the Move to a Managed Services Contract? CIO or other senior IT staff 48% Non- IT execu8ve, such as CFO, COO, General Manager, etc. 27% CommiLee comprised of IT and non- IT execu8ves 21% Other 4% Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
18 Further Proof: IT Channel Firms Also See Shig in Purchasing Authority Going to Business Execu'ves IT Firm Assessment of Shigs in Purchase Authority Ac'ons Taken by IT Firms to Address Shigs in Purchase Authority Significant change expect no8ceable shis in purchase authority to business execu8ves Modest change 11% 44% 38% Focus less on HW/SW specs and more on total solu8ons 35% Training to beler equip sales staff to sell solu8ons to business execu8ves No change expect CIO/IT dept. to con8nue as primary IT purchase authority 36% 34% BeLer align solu8ons to meet business needs and technical requirements 32% Use of social media plauorms to target business execu8ves Don't know 10% 25% Redesign marke8ng collateral with more of a business user focus Source: CompTIA 2014 Industry Outlook Base: 525 execu8ves at U.S. IT firms
19 IT Func'ons at Top of List to Move to Managed Services Security (firewalls/an8virus) Web site hos8ng Network administra8on/maintenance Help desk/it support Database management Web site design Business con8nuity/disaster recovery Applica8on monitoring 38% 36% 34% 31% 29% 28% 27% 27% Source: CompTIA s Trends in Managed Services study Base: 273 managed services users
20 Pricing Trends for Managed Services Today Managed Services Pricing 31% By user consump8on 22% Fixed recurring fee 20% Per user 19% Varies based on customer 9% Per device Contract Renewal Pricing Procedures Nego8ate terms on customer- by- customer basis Keep pricing the same unless new services added Increase pricing based on set formula or metric Source: CompTIA s Trends in Managed Services Opera1ons study Base: 198 U.S. Managed Service Providers
21 Informa'on That Would Improve Managed Services Process 1 Easier to understand/ nego8ate SLA 5 More quan8fiable ROI 2 BeLer insights into handoff with internal IT 6 Clarity on types/frequency of ac8vity repor8ng 3 Proof of experience (customer refs) 7 Clarity in branding for search purposes 4 Proof of exper8se (cer8fica8ons, creden8als) 8 More op8ons to alter or waive contract if things go wrong Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses using managed services in some way
22 For more informa'on, contact: Carolyn April Thank You 22
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