Trends Report

Demand Insights: Cracking The SMB Managed IT Services Nut

Vendors With Broad Distribution And Low Cost Service Delivery Will Win

December 4th, 2007
Michael Speyer, null
Michael Speyer
JG
Julie Giera
With contributors:
Eric G. Brown , Emily Van Metre

Summary

Outsourcing hardware maintenance and management is widespread among SMBs, with 51% using outside help. But only 6% of SMBs do this in the form of managed services. Unlike their enterprise counterparts, SMBs tend to use hardware outsourcing to solve tactical problems like skill shortages and uptime improvement. They prefer to buy these services from the local and regional VARs that are well positioned to further leverage their existing relationships. Tech marketers targeting the SMB managed IT services market will need to work around or leverage the VARs' relationships with SMBs, effectively market a "more efficient, high quality" value proposition, develop low-cost, scaleable offerings, and persuade SMBs to embrace a different services model.

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