How many dealers offer managed IT services is a question we examine every year in our Annual Dealer Survey. The first part of our 36th Annual Dealer Survey will be published in October and the answer to that question for 2021 will be revealed in that issue. But last year’s Survey results may yield some clues.
What we’ve found is that the more dealers who participate in our Survey, the lower the percentage of dealers who offer managed IT services. That’s because most of those dealers who have not participated in the past tend to be smaller dealers with revenues well under $10 million. For example, in 2018, 330 dealers participated in the Survey with 50% saying they offered managed IT services. The following year with 344 dealers responding, that percentage fell to 46%. And last year, with 342 dealers filling out the Survey, the percentage fell to 42%. This year, 385 dealers responded to the Survey, so if the trend continues, we can expect to see the percentage of dealers offering managed IT services decline from the percentages of the past three years.
The average revenue percentage of revenue derived from managed IT for all Big Six (Canon, Konica Minolta, Kyocera, Ricoh, Sharp, Toshiba) dealers was 9% in last year’s Survey, up from 8.14% in 2019. The top three by manufacturer were Konica Minolta (13.5%), Ricoh (10%), and Sharp (9%), followed by Canon (8%), Kyocera (7.5%), and Toshiba (6.5%).
Last year we asked, for the first time, if managed IT revenues were up, down, or the same compared to the previous year (Note that last year’s Survey focused on 2019 revenues while this year’s Survey will examine 2020 revenues.). Fully 62% of respondents reported revenues were up while 35% reported revenues were the same as the previous year, and only 3% saw a decline in their managed IT revenues.
Any ideas what direction managed IT revenues will take in our upcoming Survey?
Access Related Content
To become a subscriber, visit www.thecannatareport.com/register or contact cjcannata@cannatareport.com directly. Bulk subscription rates are also available.
You're viewing IT Tuesdays: How Many Dealers Offer Managed IT Services?, in a text-only format to view this issue in all its entirety please download it from our Past Issues page
