70 Percent of MSPs Must Adapt Services to Capitalize on Internet of Things, AVG Study Reveals

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Oct 22, 2014, 08:00 ET

Over half of SMBs believe IoT will boost revenues, around two-thirds of MSPs think the same but only 18 percent of their customers think they are ahead of the curve

AMSTERDAM and SAN FRANCISCO, Oct. 22, 2014 /PRNewswire/ -- Roughly 1-in-4 (26 percent) small- to medium-sized businesses (SMBs) and managed services providers (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 announced today by AVG Technologies N.V. (NYSE: AVG), the online security company for devices, data and people. Almost three out of five (57 percent) SMBs agreed that IoT will help boost their revenues, a sentiment that was echoed by around two-thirds (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 per cent 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," said 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. However, they had better adapt quickly. 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," continued Mike 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 organisation 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.
The majority (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, less than two fifths (38%) of MSPs say that their organization currently has an integrated remote monitoring and management platform.
Around three fifths (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.

* AVG commissioned independent technology market research specialist Vanson Bourne to undertake this research. 1770 interviews were carried out during September 2014 with IT and marketing decision-makers of organizations with of 1 – 500 employees with and 85/15 per cent split between SMBs and MSPs. Interviews were performed across five countries: UK, US, Canada, Germany and Australia. Respondents to this research came from a range of industry sectors, with only the public sector excluded.

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About AVG Technologies (NYSE: AVG)

AVG is the online security company providing leading software and services to secure devices, data and people. AVG has over 182 million active users, as of June 30, 2014, using AVG's products and services including Internet security, performance optimization, and personal privacy and identity protection. By choosing AVG's products, users become part of a trusted global community that engages directly with AVG to provide feedback and offer mutual support to other customers.

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