Time to step up on IoT as vendors miss mark

Larry Walsh says the channel must help SMBs, and MSPs, to gain from Internet of Things (IoT)

The potential of the Internet of Things (IoT) to revolutionise the way business is conducted and drive growth is not lost on SMBs and managed services providers (MSPs).

According to a study sponsored by AVG Technologies, they see the trend of ubiquitous IP-enabled and connected devices as a bigger opportunity than any other emerging technology, but also believe the market is being slow to capitalise on it.

SMBs said IoT will change the nature of business operations, IT consumption, and data creation and protection. Nearly one half of SMBs surveyed believed the advent of wearable devices, mobile computing, IP-enabled appliances, embedded devices and supported cloud-based services will have the greatest impact on their organisations over the next five years.

Consequently, SMBs are preparing for the onslaught and changes resulting from IoT. Three out of five SMBs said they are budgeting for the necessary IT investments needed to capitalise on and react to IoT. And nearly half said they have moderate to substantial budgets to invest in the trend.

On the other hand, the SMBs spoken to were not impressed with the quality of products, services and support being made available through their vendors, resellers and MSPs.

Fewer than one in five said their solution providers are ahead of the curve in adopting and supporting IoT technologies, and two-thirds of SMBs said vendors and partners need to improve their IoT-related products and services.

The MSP community may not disagree with its customers. In fact, only 38 per cent of MSPs in the poll believe their current vendors are on the cutting edge of the IoT trend.

More than half of MSPs surveyed said their customers are looking for guidance, products and support for IoT technologies. And seven out of 10 MSPs indicated they will adjust their service offerings and business models to address the needs of their customers in the IoT era.

But MSPs also said their vendors are behind the curve when it comes to this emerging opportunity. Three out of five MSPs said they will have to enter relationships with new vendors to gain access to the technologies and resources that support IoT.

MSP confidence in vendors wasn't high either. Only a third of MSPs polled said their current vendors are providing technologies and services that lead to efficiency savings for their end users. And just one in four said its vendors' products result in productivity gains for customers.

If the AVG survey results prove true, they may foretell of major shifts in channel alignment with vendors as IoT continues to gain traction.

Through the eyes of channel partners and customers alike, vendors are not doing enough or moving fast enough to make IoT viable. It's the vendors making investments in IoT technology and articulating their value propositions that will likely make headway with both partners and customers.

Larry Walsh is president and chief analyst at the 2112 Group