Managed service providers see emerging technology as a significant source of business opportunity over the next couple of years. More than one-half of respondents to a recent CompTIA survey already offer IoT managed services.

The majority of MSPs have opted to take on IoT managed services as part of their portfolio, despite the fact that, according to Omdia data, enterprise adoption of IoT still hovers around 29%. But MSPs see significant business advantage in offering IoT managed services, according to the CompTIA report, “Trends in Managed Services.” Of 400 MSPs, 53% of respondents provide IoT managed services.

At the same time, MSPs are largely focused on traditional areas of IT: help desk (63%) networking (59%) and cybersecurity (55%).

Additionally, 52% say that skills in cybersecurity will be the No. 1 action to help ensure solid market performance over the next two years.

So while MSPs still place their focus on traditional services, market data indicates that their bet on IoT managed services makes sense.

The global managed IoT services market is expected to grow from approximately $21.9 billion in 2016 to $79.6 billion by 2021, at a compound annual growth rate (CAGR) of 29.5% during that period (2016-2021), according to MarketsandMarkets.

CompTIA’s Carolyn April

According to the CompTIA study, 55% of respondents say that IoT presents significant revenue opportunities today, while 37% say that business opportunities are still one to two years away. But respondents also cite several challenges associated with running a managed IoT practice — keeping IoT hardware updated (54%), hiring people with the right skills (51%), staying on top of security concerns (46%) and the learning curve with IoT technology (46%).

Ultimately, MSPs may experience the greatest success with a familiar combination — a hybrid set of offerings.

“We see real excitement over new areas that have the potential to help MSPs tap new recurring revenue streams, attract new business and expand engagements with current customers,” said Carolyn April, senior director, industry analysis at CompTIA. “The successful MSP is likely to feature a combination of bedrock basic services and new, premium offerings.”