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Market Data shows the future of providers?

Data roundup time.   Some Canadian market data, via Intel.   Quoting Channel Buzz:  55% of the Intel partners said that it resulted in a decrease in revenue. Worse still, that decrease was significant, with 33% being the average drop. 12% said the drop was between 50 and 75%, and 10% said it was over 75%. Only 15% of partners said that the pandemic had increased their business, with the average amount being by 24%. 30% said that it stayed about the same.

Link in the show notes, as there is also some optimism in their outlook for this year. 

Meanwhile, let’s look over at the AWS and Azure battle.   Flexera’s “State of the Cloud” tells us 92 percent of respondents report a strong multicloud presence in their orgs, and 80 percent report adopting hybrid cloud strategies.    Flexera is also now reporting that while AWS, Azure, and Google Cloud are the top three… Azure is tied with AWS for breadth of adoption in the enterprise.     Oh, and those respondents believe about 30 precent of cloud spend is wasted.

Finally, Gartner on the managed services space.   Quoting Redmond Channel Partner:

Gartner identifies four major trends driving the current provider landscape. First, a digital workplace program has become a business-continuity issue, rather than a nice-to-have, since pandemic lockdowns went into effect in March 2020. Second, there’s been a big jump in transformational deals, with large and midsize North American clients moving away from “technology-centric, cost-led MWS contracts” to engagements that are more sweeping. Third is an emerging focus on employee productivity and business outcomes.

The other major trend among the four involves what Gartner describes as a digital channel shift on the service desk. This is where Gartner is detecting major movement away from manual service desk involvement.

Across the 255 million annual contacts reported by providers in this research, 10% are now intercepted by analytics, 15% are dealt with through user self-service, and 14% are handled by various forms of automation, including chatbots and virtual assistants,” the report notes. “As a result, manual resolution is now just 60% of overall contacts, down from 65% in 2018. However, this digital shift is spread unevenly, and five providers in this Magic Quadrant are already resolving over 50% of contacts for their clients without manual intervention, and for individual accounts this can exceed 70%.”

Why do we care?

Let’s combine these.   2020 was hardest on IT services companies, versus their vendor partners.   It was also pretty transformational.  

Closing the market share gap shows how mature the cloud products are.    It’s not a trend, it’s a standard.    During that “large jump” – read that as pandemic acceleration — larger organizations are now doing exactly what we talk about here.   Productivity and business outcomes, not technology and cost driven.  

And to make it all the more interesting, it’s killing off the manual service desk with new technologies.

The provider of the future is a business consultancy that has some technology that removes manual technology service.   

Source: ChannelBuzz CA

Source: RCP Mag, RCP Mag