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Service Providers: Are You Benefiting from the IT Gold Rush?

What is at the heart and soul of the new IT spending boom? According to Mark Banfield of ServiceDesk360, it’s V for virtualization, baby! Along with cloud computing, the virtualization phenomenon is helping to separate IT applications from their underlying hardware, resulting in cost savings and economies of scale, the likes of which have never been achieved until now. But while the market for internet service providers (ISPs) is clearly growing, it’s not quite clear that ISPs are benefiting from the $2.1 trillion global influx of IT spending documented by IDC.

More Room for Growth

What we do know is that seven out of ten ISPs use cloud apps and services to increase efficiencies. We also know, from a study conducted by Autotask, that higher earnings are available for service providers. It’s also evident that more ISPs are earning $2 million each year, and 20% now earn over $5 million – an encouraging figure.

In addition to a slew of positive market findings, there may even be areas where ISPs can boost revenue through self-improvement. A global Gartner study reveals that 38% of companies will no longer provide devices to employees by 2016 due to the rampant and persistent trend in BYOD:

 The IT trade association CompTIA claims that integrating devices is the greatest challenge for the large firms, as sheer numbers of employees and devices makes integration a massive undertaking. At the other end of the scale, small companies are hampered by a lack of resources – for example, device integration and remote support require a combination of specialised skills, infrastructure and bandwidth that a small company may not have in house – which is proving to be a perfect opportunity for the IT service provider to provide their customers with BYOD consolation, implementation and maintenance services.

Wasted resources due to overlooking efficiencies (Most ISPs interviewed reported wasting 20 hours of billable time every month, a figure that definitely adds up over time!) is one of the biggest areas that ISPs could improve to potentially trigger “six-figure” increases.

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About Eric Anderson

Eric Anderson is a staff writer for CAI’s Accelerating IT Success. He is an intern at Computer Aid Inc., pursuing his master’s degree in communications at Penn State University.

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