Changes in IT Consumption: The Economy and Technology Re-prioritization

January 30, 2013  

There are four key areas affecting the landscape of IT services—the economy, technology re-prioritization, personal and mobile device technology and software as a service (SaaS). This post examines the first two areas to consider.

The Economy

SMBs are just as vulnerable to the slow growth or stagnant economies as large enterprises. In the current environment, there is a need to re-evaluate cost structures. One of the most obvious strategies is to reduce fixed costs where possible replacing them with variable costs, in other words, move from CAPEX to OPEX. As an ITSP or MSP this creates infinite opportunity for you to speak with your client about cloud, SaaS and other leading edge technology to enable them to migrate toward more flexible business technology options. 

Technology Re-prioritization

Traditionally, the mission of the IT department was about standardization—servers, desktops, networks, infrastructure, core applications like accounting systems—were methodically planned out and systematically deployed. Market data suggests that IT budgets are now moving away from upgrading legacy systems and instead are designed more to support business needs with applications that are rapidly deployed and have a clear, immediate return on investment (ROI).

Whether it is a small and medium sized business or a large enterprise business, the question of whether or not a company realizes any tangible benefits from upgrading a mainstream operating system or core legacy application is more rigorously challenged. On the contrary, in the case of sales, marketing or engineering applications that bring improved process and analytics to a business, or better enable a go-to-market strategy, it is arguably easier to determine that they do in fact produce immediate gains for an organization.

Additionally, the days of large IT projects with deployments over an extensive time period are increasingly looked at with cynicism as they historically have run over time and over budget. Today businesses want new applications up and running immediately with demonstrable value.

As you modify your service offerings to meet evolving SMB technology consumption there are a number of key things to consider. Our white paper, Understanding the Changing Landscape for IT Services, provides clear insight and actionable advice for progressive ITSPs and MSPs. Download now.

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