India SMB's Spend on Remote Managed IT Services to Top US$1.6B in 2016

AMI's findings reveal that at present RMITS comprises more than 30% of the India SMB IT services spending pie and the potential for additional RMITS spending remains high. This presents a strong opportunity for OEMs who wish to carve out a niche for themselves within this fragmented market to gain a strong foothold with an all-in-one remote management product.

​Increased interest in Remote Management of PCs, Mail Security, MDM, VPN says AMI

According to AMI-Partners’ recently published 2015-16 India SMB ICT & Cloud Services Tracker Overview, SMB expenditure on Remote Managed IT Services (RMITS) is likely to exceed US $1.6B in 2016.The study found that India SMBs have been adopting RMITS at an increasing pace and channel partners are gearing up to meet the expanding requirements of their SMB customers. Clearly, SMBs can be considered the driving force behind RMITS spending growth in India since larger enterprises still depend more on a fixed model of on-site services.

"The RMITS adoption level for India SMBs is likely to gain a major fillip if even a small percentage of these 'interested' SMBs are converted to users. This latent opportunity is enormous".

Dev Chakravarty

Senior Manager, Research at AMI

​AMI’s findings reveal that at present RMITS comprises more than 30% of the India SMB IT services spending pie and the potential for additional RMITS spending remains high. “Spending on RMITS is forecasted to grow, in overall terms, at a rate of 34% CAGR over the next 3 years. In addition, the RMITS proportion within the IT services pie is likely to escalate over the next few years, somewhat at the expense of on-premise spending”, says Dev Chakravarty, Senior Manager, Research at AMI.

AMI has also examined the potential uptake for RMITS solutions within non-users. Interestingly, a high proportion of SMB non-users have expressed considerable levels of interest in online monitoring and remotely managing their IT infrastructure in the near future. High levels of interest have been observed for areas such as PCs, e-mail security & PBX, and mobile device management. However, actual adoption levels for these services are currently at an embryonic stage within PC-owning firms - mostly in single digits. “The RMITS adoption level for India SMBs is likely to gain a major fillip if even a small percentage of these ‘interested’ SMBs are converted to users. This latent opportunity is enormous,” stated Mr. Chakravarty. “However, the onus is on the managed service providers and channel partners who will need to take giant steps forward in initiating a focused campaign aimed at increasing awareness and knowledge regarding RMITS adoption and its inherent benefits,” continued Chakravarty.

AMI also obtained a supply-side perspective which indicates that many partners are incorporating remote IT management capabilities as an integral part of their product portfolio. Clearly, providing RMITS is technology driven and a number of tools are available in the market for providing these services. Multiple OEMs like Zohocorp, Microsoft, LANDesk, and IBM provide remote management tools that are utilized by a plethora of both big and small channel partners in India.

Who decides the RMITS tools that channel partners use? Is it the partner or the end-user? Discussions with partners indicate that often it’s the call of the partner and the decision depends on circumstances. While discussing this question with various channel partners Mr. Chakravarty was told by one that if the customer already has a MS Select or EA license then it makes sense to use Microsoft tools since the licensing costs are taken care of. If the customer has a global mandate for IBM then the can use the same accordingly.

Currently, the RMITS market in India is somewhat fragmented with multiple stakeholders. However, AMI’s study indicates that at present, no single product is able to meet all technology requirements and there exists an inherent SMB requirement for a versatile RMITS product with multiple functionalities. This presents a strong opportunity for OEMs who wish to carve out a niche for themselves within this fragmented market to gain a strong foothold with an all-in-one remote management product.          

Related Study

AMI’s recently published 2015-16 India SMB ICT & Cloud Services Tracker Overview provides marketing and product executives the insights to effectively enhance/tweak their go-to-market approach within India SMBs for a greater bottom line impact. The study examines India SMBs’ business needs, including ICT priorities, purchase channel preferences and buying behavior at a granular level. The analysis also delves into numerous individual ICT categories (e.g. computing hardware & networking infrastructure, software, security, storage and internet/telecommunications) – both cloud and on-premise solutions. It further provides a clear sense of the overall market opportunity/outlook for each and the forces shaping that specific category. Shifts in the India SMB ICT landscape – including purchase channels – are highlighted and illustrate how vendors can best leverage those shifts to deliver solutions profitably.

For more information about this study, AMI, or our global SMB research, call 212 944 5100, e-mail ask_ami@ami-partners.com or visit www.ami-partners.com.

About Access Markets International (AMI) Partners, Inc.

AMI specializes in IT, Internet, telecommunications and business services strategy, venture capital, and actionable market intelligence — with a strong focus on global small and medium businesses (SMBs), and extending into large enterprises and home-based businesses. AMI-Partners’ mission is to empower clients for success with the highest quality data, business strategy perspectives and ―go-to-market solutions. Led by Andy Bose, the firm has built a world-class management team with deep experience cutting across IT, telecommunications and business services sectors in established and emerging markets.

AMI has helped shape the go-to-market SMB strategies of more than 150 leading IT, internet, telecommunications and business services companies. The firm is well known for its IT and Internet adoption-based segmentation of the SMB markets; its annual retainership services based on global SMB tracking surveys in more than 25 countries; and its proprietary database of SMBs and SMB channel partners in the Americas, Europe and Asia-Pacific. The firm invests significantly in collecting survey based information from several thousand SMBs annually, and is considered the premier source for global SMB trends and analysis.

Media Contacts:

Quoted Analyst:   Dev Chakravarty. Phone: (91) 33 4003 3093 ext 217. Email: devc@ami-partners.com

Media Relations:  In US (New York): Nancy Carty. Phone: (212) 944 5100 ext 581. Email: ncarty@ami-partners.com

In APAC (Singapore): Jackilyn Almazan. Phone: (65) 6521 3787 ext 115. Email: jalmazan@ami-partners.com                        

In India (Kolkata): Jyoti Singh. Phone: (91) 33 4003 3093 ext 223. Email: jsingh@ami-partners.com

In India (Bangalore): Rati Ghose. Phone: (91) 80 4148 2661 ext 36. Email: rghose@ami-partners.com

In India (Mumbai): Neha Jalan Goenka. Phone: (91) 98209 67614. Email: njalan@ami-partners.com

Share:


Categories: Consulting and Professional Services, Saas (Software as Service), Business

Tags: Channel Partners, IT providers, IT services, mail security, managed service providers, Managed Services, MDM, mobile device management, RMITS, service providers, VPN


About AMI-Partners

View Website

AMI specializes in IT, Internet, telecommunications and business services strategy, venture capital, and actionable market intelligence—with a strong focus on global small and medium business (SMB) enterprises.

AMI-Partners
505 Eighth Avenue (Ste. 1705)
New York, NY - New York 10018
United States