There are signs of progress -- and plenty of challenges -- in the sustainable IT services market. Let's start with the positive: Roughly 50% of partners worldwide said that they expect to generate revenue from sustainability solutions in 2024 – up three percentage points from 47% in 2023, according to research firm Canalys.
Frankly, Sustainable Tech Partner is impressed by the figure -- but perhaps that's because our core editorial team is located in the United States, where most small MSPs and IT solutions providers have yet to embrace sustainability as a revenue opportunity.
Among my areas of concern: The slow march toward sustainable IT services often involves regulatory pressures rather than revenue and business opportunities. As a result, 76% of partners still have no part-time or full-time roles dedicated to sustainability – and only 23% of partners are tracking Scope 3 (i.e., supply chain) emissions, Canalys found.
Sustainable IT Services: Focus on Regulations ... Or Revenues?
Far too often, we spend time fretting about regulations such as the SEC Climate Disclosure Rule, California's SB 253 regulation, and the European Union's CSRD (Corporate Sustainability Reporting Directive).
Frankly, it would be far wiser to tout the revenue and economic benefits of sustainable IT services. A few examples:
- For end-customers, sustainable IT services can drive down monthly energy costs. Green software development can reduce the cost of running on-premises and cloud-based systems. IT Asset Disposition (ITAD), hardware as a service (HaaS) and certified refurbished gear can improve security while driving down IT costs.
- For channel partners and MSPs, sustainable IT services can improve profit margins -- particularly on monthly recurring revenues. Blend HaaS with certified refurbished hardware and cloud cost management services, and you'll likely lower your costs of goods and services delivered while lifting your top-line revenues.
Bottom line: We expect the worlds of IT, operational technology and energy management to increasingly converge. And ultimately, managed energy services will be a big revenue opportunity for technology MSPs that extend into that world.
Lingering Challenges, Next Moves
Despite those potential benefits, the sustainable IT services conversation remains a work in progress worldwide. And the challenges are even steeper in the United States, where the green IT services conversation often suffers from political infighting, and legal filings that challenge emerging regulations.
I'm not suggesting that the legal feuds are bad or good. Instead, I believe we should ignore the feuds and focus on green IT services as a revenue opportunity and business benefit -- rather than a regulatory headache.
So where do we go from here? Canalys will share additional sustainable IT services research findings during a Webcast on May 16, 2024. I'm intrigued and look forward to hearing more. Disclosure: We are not involved in the webcast, but we think it will be of value to our readership.
