How the Consumerization of IT is Creating New Opportunities for the Channel
![How the Consumerization of IT is Creating New Opportunities for the Channel How the Consumerization of IT is Creating New Opportunities for the Channel](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt335546c2c36f6f1b/6524695b7d47ca7e5ca280d9/ThinkstockPhotos-482024565_0.jpg?width=700&auto=webp&quality=80&disable=upscale)
We’ve come a long way since the days when computers were so prohibitively expensive that Thomas Watson, one-time CEO of IBM, famously said, “I think there is a world market for about five computers.” In the last several years, the consumerization of IT has flipped the business technology paradigm on its head. Traditionally, innovative technology would be adopted first at the enterprise level, then slowly trickle down to the small-to-midsize business (SMB) market before finally making its way to consumers.
These days, new technology applications are more likely to originate and develop in the consumer space and trickle up to enterprises. And when they reach the enterprise level, they often debut as a line of business (LOB) application or device rather than one selected, approved and integrated by IT.
So what’s this mean for the channel? New buyers, for starters.
Not only are some enterprises lagging behind SMBs in integrating technology into business workflows, they’re also having to battle employees who bring unsanctioned tech into their operations. This, of course, has given rise to “shadow IT.”
In many organizations, the CIO is no longer the chief arbiter of what technology is deployed at a company. Instead, LOB executives are buying individual applications, tools and platforms to make their particular job functions more efficient. A 2015 global survey of 200 CIOs by Brocade showed that 83 percent had experienced some unsanctioned provisioning of cloud services. It’s a different paradigm in which individuals are driving enterprise technology.
So what’s in the shadows that concerns you? Plenty.
Last week at CompTIA’s Annual Member Meeting (AMM), Datto CEO Austin McChord discussed a recent audit of his internal applications. When the results of the survey came in, his team discovered that Datto was using over 100 SaaS applications company-wide, a tiny fraction of which was actually authorized by the IT department. McChord says the cost of all of the apps added up to millions of dollars a year. That kind of expense is alarming to enterprises that are fighting a losing battle to control shadow IT. When you add on the security implications, the potential for financial loss grows exponentially. Analyst firm Gartner says that by 2020, a third of successful cyberattacks on enterprises will be on their shadow IT resources.
Should you be concerned? Uh-huh.
On the smaller end of the spectrum, this scenario plays out within SMBs that try to “self-serve” their IT needs with affordable, scalable cloud-based applications. The consumerization of IT has made technology more attainable to SMBs, but has also introduced new risks. According to the SEC, SMBs are the principal target of cyberattacks. And it’s harder for them to bounce back than large companies; half of small businesses that suffer a cyberattack never recover.
So what can you do to help? Start here.
There’s huge opportunity for the channel in the new paradigm as companies of all sizes attempt to satisfy their employees’ demands for user-friendly, function-specific applications while maintaining a manageable framework. In fact, analysts predict the global system integration market will grow at a compound annual growth rate (CAGR) of 6.29 percent between 2014 and 2019 as businesses increasingly source solutions from multiple vendors.
Service providers can position themselves as virtual chief information officers (VCIOs) who have the expertise and offerings to bring cutting edge technology solutions into play while simultaneously wrangling shadow IT. Businesses need someone who can make those dozens of LOB applications work together, stay within budget and adhere to regulations around privacy, all while ensuring data security. Service providers who can step up and fill that role will be in high demand.
There’s huge opportunity for the channel in the new paradigm as companies of all sizes attempt to satisfy their employees’ demands for user-friendly, function-specific applications while maintaining a manageable framework. In fact, analysts predict the global system integration market will grow at a compound annual growth rate (CAGR) of 6.29 percent between 2014 and 2019 as businesses increasingly source solutions from multiple vendors.
Service providers can position themselves as virtual chief information officers (VCIOs) who have the expertise and offerings to bring cutting edge technology solutions into play while simultaneously wrangling shadow IT. Businesses need someone who can make those dozens of LOB applications work together, stay within budget and adhere to regulations around privacy, all while ensuring data security. Service providers who can step up and fill that role will be in high demand.
Consumer-driven IT has turned the traditional technology paradigm on its head. Luckily for channel partners, it’s creating new business opportunities, too.
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