Channel partners can capture a slice of the growing IoT managed services market if they can overcome the steep learning curve.
The growing adoption of smart devices in the workplace is prompting the need to not only ensure they run efficiently but also that they are monitored and managed. Enter channel firms, which have a big opportunity in the fast-emerging IoT market.
Internet of things (IoT) is comprised of devices, connectivity, security and applications. Market research firm Research and Markets predicted that billions of devices will be connecting to the internet from various industries, which will lead to high demand for managed services. The global IoT managed services market is expected to grow at a compound annual growth rate of 15.3% between 2016 and 2022, according to the firm’s managed services market study last year.
“To run the IoT technologies successfully, a properly managed service in each layer of IoT ecosystem is required,” the study stated.
With this new opportunity come several factors channel firms need to consider at the outset, including investments in staffing, recruitment and training.
At the base level, managed service providers (MSPs) can resell data-collecting hardware devices, noted Carolyn April, senior director of industry analysis, at nonprofit trade association CompTIA. The next step will be managing and monitoring devices, which she called “a sweet spot for MSPs.” At the most sophisticated and high-profit end, MSPs will analyze the data collected by the devices in a way that drives informed business outcomes for customers, April said.
“For MSPs, the biggest opportunity lies in not only managing the IoT devices installed across a customer environment, but in working with the reams of data collected by these devices,” she said. “By being data experts, MSPs will be able to analyze and provide prescriptive advice to customers that helps drive their business goals. That’s true value-add and a differentiator for MSPs.”
Offering IoT managed services also means a learning curve like with any new discipline or practice area, she noted, even for channel firms that already have managed services practices.
“The learning curve is going to be steep for any managed services provider wanting to dive into supporting IoT,” added Lawrence Munro, director of SpiderLabs at Trustwave, which launched its Trustwave Managed IoT Security service a few years ago covering IoT developers and manufacturers, as well as IoT implementers. “For the most part, no two IoT devices are alike and they often utilize custom protocols, for which there is no support.”
Channel firms that want to offer IoT managed services will need to bring new expertise into their business, Munro said. “Most IoT devices lack a lot of the handy plug-and-play features such as syslog, of modern desktop operating systems, and are far removed [from] the polished bezels of rack servers,” he noted.
There will also be a learning curve for new services such as building management systems and industrial automation, said Jason Covitz, director of channel and segment strategy in the IT division of Schneider Electric.
“First and foremost, they will need to learn the new [offerings] and how to monetize them,” Covitz said. “Additionally, they will need to always keep in mind that the decision-making process for most IoT applications is more complicated than for a traditional IT implementation.”
There will also be a shift in the type and number of potential decision-makers and influencers that will have a stake in the process, including IoT consultants, electrical contractors, mechanical contractors, plant managers and data center managers, he said.
“Beyond just learning the new technology involved in IoT managed services, partners need to understand what the engagement process looks like and, ideally, expand their networks outside of their traditional IT networks” and into some of those areas to help with their engagements, Covitz said.
Source: www.searchitchannel.techtarget.com
