Let’s kick off with a collection of interesting developments.
According to Synergy, the IT capacity of new-built hyperscale data centers is expected to more than double over the next six years due to the growth of artificial intelligence workloads. This will result in a nearly tripled hyperscale capacity as more data centers are built, and older facilities are retrofitted. However, not all analysts agree with this optimistic outlook, as CCS Insight predicts a “cold shower” for generative AI in 2024.
According to leaked data, Windows 11 is currently being used by over 400 million monthly active devices, with an expected increase to 500 million by early 2024. The slower adoption rate compared to Windows 10 can be attributed to stricter hardware requirements. Windows 11’s market share is currently lower than Windows 10, but Microsoft aims to launch Windows 12 in 2024, potentially focusing on AI integration.
According to Forrester Consulting’s Total Economic Impact report, selling on AWS Marketplace can generate a 234% return on investment (ROI), close deals 50% faster, and result in larger average deal sizes. The report also highlights the growth of Channel Partner Private Offers and an increase in win rates for system integrators and managed service providers. Partners are making money through resale private offers and professional services private offers, with AWS Marketplace funding and incentives further supporting practice growth. Cloud marketplaces, including AWS Marketplace, are becoming the preferred choice for customers, presenting a significant opportunity for channel partners.
A report by SolarWinds reveals that implementing IT Service Management (ITSM) can save businesses an average of 23 hours per week, equivalent to adding an extra employee. ITSM also enhances customer experience and offers up to a threefold return on investment. The report highlights benefits such as a 21% reduction in system downtime and ticket submission volume, a 23% decrease in incident and service ticket resolution time, and a 21% improvement in user experience. SolarWinds Service Desk customers saved 23 hours per week due to decreased ticket volume, and AI-powered features brought about a 23% reduction in incident resolution time. Financially, one in six customers reported an ROI of up to 3x their ITSM investment.
According to a report from Canalys, the worldwide cybersecurity technology market grew 11.6% year over year to $19 billion in Q2 2023. Investment in cyber resilience remained a top priority as threat levels continued to rise. Palo Alto Networks led the market, followed by Fortinet and Cisco. The report also highlighted the need for channel partners to provide cybersecurity expertise and expand services in areas such as red teaming and managed security services.
Why do we care?
That second-order effect around data centers is an excellent place to start. AI isn’t driving “smaller, faster, cheaper”… there’s more technology required here. That feels important, particularly as we consider that the lower adoption rate of Windows 11 compared to Windows 10 may mean less immediate upgrade business. Still, it’s a signpost that the next Windows could have more significant AI integration, creating a market for specialized services around AI capabilities.
SolarWinds’ report quantifies the efficiency gains from ITSM implementations, translating it to almost an extra employee’s worth of time saved. The financial ROI and enhanced user experience make a compelling case for MSPs to deliver ITSM solutions, either as the service itself or helping internal IT achieve it.