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Internet of Things (IoT) Opportunity for Channels, VARs, MSPs, Resellers, Alliances, Distributors
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IOT Opportunities for VARs and MSPs Jay McBain, Principal Analyst – Global Channels June 15, 2018 jmcbain jaymcbain © 2018 FORRESTER. REPRODUCTION PROHIBITED.
01 02 03 04 05 Traditional channels transforming to stay relevant as business leaders take the lead The increasing complexity is challenging for customers & channel professionals Five trends to watch in the channel Buyers are looking for hyper-specialized skills focused on business outcomes The broader channel community is aging out New types of “shadow channels” are earning their way into the room
Profitability is quickly decreasing for solution providers 17% Increased margin pressure Increased commoditization Average MSP margin in US
The Internet of things (IoT) is the inter- networking of physical devices, vehicles, buildings, and other items embedded with electronics, software, sensors, actuators, and network connectivity which enable these objects to collect and exchange data. Source: Wikipedia © 2018 FORRESTER. REPRODUCTION PROHIBITED. 5
The low margin remedy. Solution providers just voted IoT as the top emerging technology based on potential margin and near-term opportunity.
Sizing IoT 2020 50.1B Internet of Everything 1992 1M Computers 2002 0.5B Computers 2012 8.7B Mobile & Wearable Source: Cisco © 2018 FORRESTER. REPRODUCTION PROHIBITED. 7
OPPORTUNITIES FOR VARS & MSPS © 2018 FORRESTER. REPRODUCTION PROHIBITED. 8
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 1 Complexity - Client/Server will look simple compared to linking endless devices securely and making sense of mountains of disparate data being generated. 9
Business consulting represents a huge opportunity - both with lines of business such as marketing, operations, HR, supply chain, as well as IT who will own the security, redundancy, and performance of this new paradigm. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 10
Policies, Compliance and Risk Assessment While some devices and sensors will be innocent, others will be transmitting health, payment and private citizen data that is highly protected by multiple levels of government regulation and evolving legislation. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 2 11
Hacking will take on a new dimension on the edge of the network and security expertise will be one of the most valuable skills in the foreseeable future. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 12
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 3 Procuring, Provisioning and Deploying There will be little opportunity for hardware margin (not unlike today). 13
The opportunity will be in finding and procuring devices and software from over 100,000 competing vendors, provisioning them with the right network and security © 2018 FORRESTER. REPRODUCTION PROHIBITED. protocols and staging them for deployment. 14
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 4 Software Implementation & Integration The permutations and combinations of 100,000 vendors producing hardware and software. 15
This will invariably lead to a highly customized, industry specific set of skills that piece together software stacks, in many cases for the first time ever. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 16
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 5 Software Development Vendors are not interested in extending their API's or dedicating precious engineering talent for one-off solutions. 17
The channel will write code and participate in the integration of technology like never before. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 18
Premise Monitoring Banks, retailers, airlines, hotels and numerous other industries are placing sensors, cameras and other devices in areas where they do business with customers. The channel will offer location services as well as vertical expertise that solves line of business requirements. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 6 19
The channel will offer location services as well as subvertical expertise that solves line of business requirements. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 20
Product Monitoring Companies embed sensors, software and other technologies into their products—coffee machines, refrigerators, big-haul trucks and aircraft engines—to monitor usage and performance. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 7 21
The channel will offer big data expertise including data cleansing, normalization and actionable intelligence. Only 5% of data today is being analyzed and that provides one of the biggest game changers in the next few years. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 22
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 8 Customer Monitoring Using mobile apps, beacons or wearables to track consumer behavior. 23
The channel will come in with the marketing and sales skills to connect to funnel activities and customer nurturing, scoring and development strategies. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 24
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 9 Supply Chain Monitoring Adding sensors, cameras and other digital devices to production and distribution operations. 25
Channel partners with skills in manufacturing, factory operations, shipping and supply chain operations will provide the guidance and strategic best practices for driving cost out of organizations of all sizes. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 26
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 10 Infrastructure and Support There are significant opportunities, many based on today's skills and practices, that will be amplified in this new world. 27
WLAN coverage, security and performance becomes critical to the success of IoT © 2018 FORRESTER. REPRODUCTION PROHIBITED. 28
Employee support and helpdesk supporting endless devices with new use cases and unique environments © 2018 FORRESTER. REPRODUCTION PROHIBITED. 29
Hot spare programs for mission critical devices, with provisioning and implementation © 2018 FORRESTER. REPRODUCTION PROHIBITED. 30
Audio/Video/Environment upgrades with digital signage, new payment systems, surface computing, etc. © 2018 FORRESTER. REPRODUCTION PROHIBITED. 31
Mobile printing/document management supporting new omnichannel environments © 2018 FORRESTER. REPRODUCTION PROHIBITED. 32
Building/electrical upgrades - these devices will need power and current environments are not built to handle (think hospitals, shipping and manufacturing sites) © 2018 FORRESTER. REPRODUCTION PROHIBITED. 33
KEY TAKEAWAYS © 2018 FORRESTER. REPRODUCTION PROHIBITED. 34
This is not the horizontal commodity technology market with limited industry, geographic and size considerations that client/server represented. Source: Wikipedia © 2018 FORRESTER. REPRODUCTION PROHIBITED. 35
It is a highly specialized, industry optimized, line of business specific, use case orientated solution that will be hyper- local to a small set of customers. Source: Wikipedia © 2018 FORRESTER. REPRODUCTION PROHIBITED. 36
1 Analyze your own capabilities, capacity, and will to change. Partner? M&A?
2 Focus marketing, sales and partner approach to the new business buyer.
© 2018 FORRESTER. REPRODUCTION PROHIBITED. 3 Become more hyper-specialized, build intellectual property and your brand. 39
Let’s connect… jmcbain jaymcbain © 2018 FORRESTER. REPRODUCTION PROHIBITED.