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Economy Spurs Vendors to Take Up Managed Service Model, Survey Says

While some vendors have been slow to embraced the managed services delivery model, that may be changing due to the sluggish economy, according to the results of a new study by Amazon Consulting and Channel Insider.

The survey found nearly half of the vendor respondents said they expect sales through MSPs to account for at least 25 percent of their business. What’s more, 13 percent said they are shooting for 75 percent to 100 percent of their sales through managed services models this year. Another 21 percent are aiming for at least half of their overall sales through MSP programs, 13 percent are shooting for at least a quarter, and 25 percent for at least 10 percent.

According to the study’s authors, the shift appears to be a reaction to economic downturn. Forty-one percent of study participants said they are seeing increased demand from channel partners for their managed services programs as a result of the global economic crisis. A small group, 8 percent, said the economy has driven down demand.

Thirty percent of participants in the Amazon Consulting/Channel Insider study said demand from partners for managed services offerings is very strong and growing, while another 30 percent qualified demand as strong and steady. Twenty-six percent of respondents said they are experiencing little or no managed services demand.


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