This recent research from iGR should not be a big surprise to IT insiders who have predicted this move from buy/own/manage network services to “as a service” for both software and networks (NaaS). As one analyst told me when we discussed the findings, “this is the future of IT.”
As Iain Gillott, president and founder of iGR, put it: “There’s a growing interest from enterprises in Network as a Service in order to reduce capital expenditures and take advantage of IT outsourcing.”
> 64% of SMBs are more than willing to outsource Wi-Fi because they want to focus on the core business. Why? Very simply, there’s a scarcity of IT expertise to manage network in one or more locations. In addition to the cost of Wi-Fi equipment ($200-1000 per AP), the cost associated with managing Wi-Fi Access Points was estimated to be between $27-30 per AP/per month.
KodaCloud makes it easy for a customer to sign up for Wi-Fi as a service when the subscription cost is $25-30 per/AP. No worries about upfront equipment and installation costs, software licenses, ongoing maintenance or $150-225 yearly cloud network monitoring fees.
One flat rate of $100 for a network of 4 Access Points addresses the needs of over 6+ Million small businesses. $300-400 for a network of 12-16 Access Points addresses the needs of several hundred thousand of medium sized businesses.
As one MSP told me when we first met a few weeks ago… “So let me get this straight, we find the customer and you ship the equipment to our customers, and we don’t have to carry inventory?”…to which I replied “yes!”. He went on, “And, we make 50-80% margin, and the customer and us as the partner receive proactive networking monitoring, troubleshooting and alerts?” Again, my answers was “yes”. His reply was simple, “this is a no-brainer”. Maybe needless to say, but his company became our 112th MSP partner.
By offering Wi-Fi as a Service, MSPs can tap into a multi-billion dollar services opportunity for years to come with recurring revenue streams. It’s a “no brainer” 🙂
KodaCloud is a proud member of the MSPAlliance. Most recently, we received the coveted “Best Cloud Solution” award for our innovative AI-powered cloud Wi-Fi service for MSPs. Find out more about the SMB research and more.
Register for the iGR SMB Research findings webinar on Nov. 11 at 9am Pacific/12pm Eastern, hosted by myself and Iain Gilliot of iGR, and moderated by Charles Weaver from the MSP Alliance.
Let’s make the future of IT together.