It’s not too late for New Year’s resolutions. Here are five key things that technology providers should think about doing to grow business in 2017.
Double down on your area of expertise for building new IoT applications
Vendors are increasingly on the lookout for channel partners who dominate particular niches in their geographies. They are seeking those partners who can integrate their technology into vertical IoT solutions. For instance, technology providers in Texas might have oil and gas customers in the energy vertical. In this scenario, they can leverage Intel® and Intel® partner technology to rapidly build new IoT applications. These apps do things like monitor pipelines, refineries, trucks and the like.
Recognize cloud-savvy customers and act accordingly
Today’s end-user customers have built complex, heterogeneous IT environments with multiple configurations over many years. Hence, why it is critical for technology providers to conduct detailed business technology assessments when scoping new cloud-based solutions. It’s been reported that this consulting methodology is winning over cloud-savvy customers that have already done their own detailed research. They want guidance to ensure that they have not missed critical data points when making decisions about public/private/hybrid cloud or on premise solutions.
Capitalize on the cloud services boom
For the first time in 2016, cloud services surpassed cloud infrastructure in annual sales. This was driven by growth from lower layers of the cloud stack, according to a recent Synergy Research Group report . “In aggregate cloud service markets are now growing three times more quickly than cloud infrastructure hardware and software” per the report. In addition, it stated, “Cloud technologies are now generating massive revenues for technology vendors and cloud service providers”. Most importantly, the research indicated that many more years of strong growth lie ahead.
Meet the demands of increasingly savvy SMB customers
SMBs are becoming more tech-savvy with each passing year. They recognize that strategically employing technology in their organizations can give them the competitive differentiation they desire. This is crucial for SMBs to succeed in today’s digital business climate. Typically, SMBs can’t support a CIO or IT leadership position. Thus, they rely heavily on their solution providers to play the role of their outsourced IT executive. SMBs today are far more knowledgeable about the importance of IT. Equally, they are keenly aware of how shabby or broken IT can be highly detrimental to their business. This is a greenfield opportunity for VARs, MSPs and CSPs.
Invest in your business
Technology providers will need to invest wisely in their own businesses in 2017. This is especially true for those who want to be able to capitalize on these trends. Patience, financial discipline and technical expertise are a must in building out your own cloud infrastructures and IoT vertical applications. And, developing proprietary IoT applications can increase your company valuations. Per one report, CSPs with their own intellectual property can be worth roughly 11 times EBITDA, or more. That’s almost double the current valuation multiple for MSPs.