Monday Morning Impact – May 8

Published On: May 7, 2023Categories: Buzz, Uncategorized

IDC: Number of Managed Services Contracts Declined in 2022; Increase in Average Deal Size

According to the International Data Corporation (IDC) Services Contracts Database, more than 1,700 managed services deals were signed in 2022 worth more than $125 billion in contract value. The total number of deals declined compared to 2021, but the average deal size increased by more than 22%.

Despite indications of a global economic slowdown, IT spending across organizations seems to be steadily increasing, according to the Needham, Massachusetts-based market researcher, which also reports an increase in larger deal signings (total contract value (TCV) above $100 million) in 2022 compared to 2021.

More than 60% of the total TCV was signed in the USA, which is almost 8% higher than 2021. This growth was mainly driven by many large deals awarded to hyperscalers involving higher level cloud implementation. Western Europe accounted for 28% of the TCV in 2022, which is almost 6% less than 2021. Due to high inflation, skill shortages, and disruption in the supply chain due to geo-political reasons, this slowdown is expected to continue over a few quarters.

Overall spending by organizations is expected to decline due to the economic headwinds. However, IT spending is not expected to be affected as much.

The Services Contracts Database lists more than 2,300 managed services deals, worth more than an estimated US$122 billion, coming up for renewal in 2023. This includes about 130 deals above TCV of $100 million.

Channel Impact®
As technology is increasingly becoming the backbone of organizational growth strategies, partners are seeing more organizations upgrading their IT infrastructure leveraging cloud, artificial intelligence (AI), and security. The pandemic further accelerated this trend.

Rubrik & Zscaler Team Up on Ransomware Solution

Rubrik, a Zero Trust data security company, and Zscaler, which focuses on cloud security, have announced a new technology integration intended to streamline data protection and compliance while also boosting cyber resilience.

As data continues to proliferate across enterprise, cloud, and SaaS environments, organizations are struggling to ensure that sensitive data is not deliberately or accidentally exfiltrated. With both data and users growing and expanding over ever more distributed landscapes and regulations, security has become top of mind for organizations.

According to new Rubrik data for 2022, organizations secured on average 61% more data in the cloud and 226% more data in SaaS applications than years prior. In Zscaler’s 2023 Phishing Report, Phishing attacks around the world rose nearly 50% in 2022 compared to 2021, as a result of new and evolving threats like Adversary-in-the-Middle (AitM) attacks, Phishing-as-a-Service (PaaS) kits, and AI tools like ChatGPT.

Rubrik’s integration of the company’s Sensitive Data Monitoring & Management offering with Zscaler Data Loss Prevention (DLP) is designed to identify sensitive business data across enterprise, cloud, and SaaS environments so that specific data protections can be implemented easily to prevent data loss.

“The growth and sophistication of cyberattacks show no signs of slowing down and they’re all after one thing – your data,” said Bipul Sinha, CEO and Co-founder of Rubrik. “That’s why we’re excited to partner with Zscaler, another leader in cybersecurity with zero trust ingrained in their DNA.”

“It is paramount for organizations to prioritize a Zero Trust strategy to keep business-critical operations running,” said Jay Chaudhry, CEO, chairman, and founder of Zscaler. “Combining Zscaler’s and Rubrik’s leadership and expertise in zero trust data security allows our joint customers to reap the benefits of protecting their most sensitive and important data with ease, enabling them to be more agile and secure.”

Channel Impact®
This new integration is intended to place valuable data security insights in the hands of security and compliance teams to strengthen data protection policies that help prevent the loss of critical business data.

High Wire Networks Updates its Managed Cybersecurity Partner Program

High Wire Networks Inc., a provider of managed cybersecurity and IT enablement services, has announced the expansion of its Overwatch Managed Cybersecurity Partner Program for managed services providers (MSPs).

The updated program provides a number of escalated areas of assistance, including analysis of market opportunities, one-on-one sales training commensurate with the partner’s customer base and strategy, lead generation initiatives, ticketing and support with partners’ RMM/PSA platforms, and enhanced alignment with service delivery workflows.

“Over the past few years, MSPs have increasingly focused on helping SMB and midmarket businesses address cybersecurity challenges,” said Stephan Tallent, CRO at High Wire Networks. “We want to help them take their managed security practices to a higher level by providing comprehensive network and data protection solutions and end-to-end support throughout the customer journey.”

Channel Impact®
The enhanced partner program includes benefits intended to help MSPs of all sizes with a variety of key functions, including demand generation, service delivery, marketing, onboarding, training, and enablement.

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