IT service providers and security
How IT Service Providers Perceive Their Prospects
The two biggest revenue drivers for IT service providers in 2016 will be growth in the number of endpoints and demand for security services—two related trends.
Revenue Drivers
The top three IT services driving revenue are endpoint management, backup and restore, and disaster recovery, while the top three security-related services are endpoint, Internet and email security.
Big Opportunity
55% of ITSPs report a steady or significant increase in the number of endpoints they manage, which has led to increased security concerns.
The Cloud Rules
80% of ITSPs rely on cloud delivery to manage and secure endpoints.
Stepping Up Cloud Services
90% of ITSPs offer cloud-based services, and 55% forecast 11% to 50% growth in client cloud adoption in 2016.
Growing Prospects
The top five cloud-based services are backup and restore, email, disaster recovery, hosting and endpoint management.
FSS in the Cloud
33% of all businesses expect to replace or implement a new file-sync-and-share solution this year, according to Connected Data & Wilson Research Group. Additionally, 37% of respondents deliver FSS via public cloud, 32% via hybrid cloud and 31% via private cloud.
Biggest Priorities
Trends affecting end-client priorities include information security (51%), disaster recovery (51%), mobile connectivity (36%), managing to budget caps (33%) and always-on environments (32%).
Higher Renewal Rates
75% of respondents report they have renewal rates of 80% or higher. The top reasons: demand for managed services, improved customer service levels and demand for cloud-based services.
New Hires
In response to growing demand, 80% of ITSPs are hiring, with service desk hires (65%) projected to be two times the sales hires (32%) and three times project hires (23%) in 2016.
Profitability Disconnect
Only 7% of ITSPs measure all 10 key performance indicators (KPIs) listed in the survey, including billable resource utilization, service-level agreements (SLAs), customer satisfaction and sales pipeline.
Performance Tracking Lags
31% don’t measure SLA first-response time compliance, 24% don’t measure service response times, 13% never solicit customer feedback and 12% don’t track client renewal rates.
Missed Opportunities
26% of ITSPs aren’t looking for tools that would automate or increase customer satisfaction, 24% don’t offer file-sync-and-share products, and 20% don’t offer consulting or managed services.