technologyreseller.co.uk 07 NEWS One third of MSPs forecasting 20% hike in managed services revenue IT managed services revenues are growing at three times the rate of overall IT spending according to a new Canalys report commissioned by Cisco (Channel partner opportunities and trends by region – an independent study by Canalys, Cisco, September 2023). Global revenue for managed services is forecast to rise 12.7% in 2023, from $419 billion to $472 billion. Total IT spending is predicted to grow by 3.5%. More than one third (35%) of channel partners surveyed in June said they were expecting growth of at least 20% in their managed services business this year – up from 27% of channel partners in last year’s survey. Growth is being driven by rising demand for: n cybersecurity services and expertise, as organisations contend with greater threat levels and a global shortage of cybersecurity and IT talent. More than half (56%) of surveyed MSPs expect revenues from cybersecurity managed services to grow this year; n cloud infrastructure management and expertise, as organisations are challenged by complex cloud infrastructure spanning private and public clouds, along with distributed applications and services. Again, more than half (55%) of MSPs expect revenues from cloud infrastructure management to grow this year; and n rising demand for flexible consumption models, as organisations integrate more technology into their operations. The study suggests managed services revenue will receive a further boost next year from emerging technologies like AI and the growing emphasis on sustainability. Nearly six in 10 partners (59%) believe AI presents a business opportunity (39% stating it will be significant); and 57% believe customers are willing to pay a premium for sustainability products and solutions. In 2022, the UK’s 12,615 managed service providers increased managed services revenue by 11.4% year-on-year to $23.8 billion, contributing to year-on-year growth of 4.5%. www.cisco.com ······ No more hoarding Virgin Media O2 has relaunched the O2 Recycle for Business service, enabling any company, regardless of its mobile provider, to trade in their old technology in exchange for cash back, credit towards new devices or a donation to charity. O2 research suggests UK businesses are hoarding almost 12 million unwanted and unused smartphones and tablets. Since its launch in 2009, O2 Recycle for Business has processed more than 3.8 million business and consumer devices, wiping them clear of data before 92% are either recycled or refurbished and resold as ‘like new’ products. https://business.o2recycle.co.uk ······ Intelligence boost Zebra Technologies has demonstrated a Generative Artificial Intelligence (GenAI) large language model (LLM) running on its handheld mobile computers/tablets without the need for connectivity to the cloud. The ability to run GenAI on-device will enable Zebra customers in retail, warehouse & logistics, hospitality and healthcare to enhance productivity with the added benefits of improved privacy and security (as data remains on the device), faster performance and lower costs (GenAI searches on the cloud can be expensive). Potential use cases include boosting employees’ knowledge, e.g. by answering queries on products, store policies etc., and improving the customer experience by powering personalised shopping assistants that could provide product recommendations and potentially fully voice-activated shopping. As an alternative to a smaller on-device LLM, users of Wi-Fi 6/6E and 5G-enabled Zebra devices could also switch to a cloudbased app or web browser GenAI tool. www.zebra.com ······ Gamma recruits Morph for PSTN switch-off campaign Gamma, a leading provider of communication services, has recruited beloved Aardman character Morph and his rival Chas to help raise awareness of the PSTN switch-off. Following a recent study showing that almost one third (29%) of UK businesses are unaware that PSTN lines will no longer work after December 2025, Gamma commissioned the animation studio to create a film to highlight the switch-off and the benefits of replacement digital systems. Will Studd, Director at Aardman, said: “Working with Peter Lord, co-creator of Morph, and Chris Parker, author and screenwriter, we created a fun, playful narrative that explains the concepts and benefits of the switch in a way that harks back to the golden age of kids TV. “Voiced by Derek Griffiths, staple of 1970s and 80s Children’s BBC, we created a memorable film that plays on Morph and Chas’ antagonistic relationship to show how beneficial and easy the transition to digital is. Just like the show, Morph ends up on top, enjoying the full benefits of his digital communication. The film was a joy to create.” https://www.gamma.co.uk/solutions/ pstn-switch-off/
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