Managed IT services franchise expanding to 500 locations to fill giant void in small business IT solutions

CMIT Solutions Jeff Connally

CMIT Solutions President and CEO Jeff Connally.

CMIT Solutions, a franchised network of IT consultants to small businesses, expects within a few years to expand from 130 locations to 500 and from units in 32 states to all 50.

Here’s why, says President and CEO Jeff Connally:

“Research shows that more than eight of every 10 small businesses handle their IT needs in-house,” Connally says. “But as technology becomes more complex, with cloud computing and other web-based platforms, they’ll have to adapt by outsourcing their IT packages — and CMIT Solutions is in a perfect position to fill that market niche.”

Consider these data from the Computer Technology Industry Association (CompTIA):

  • Market research has identified 2 million U.S. small businesses that meet three key criteria: They earn at least $2 million each year; have been in business for at least two years; and are in industries that rely on IT. Of those, 82 percent handle their IT needs in-house.
  • Of the estimated 18,000 U.S. vendors providing managed IT services, no single company has more than 1 percent market share.
  • Small businesses estimated that their technology expenses increased by 65 percent from 2008 to 2009 and another 24 percent from 2009 to 2010. Expenses are projected to increase indefinitely.

CMIT Solutions estimates that within the next five years, 75 percent of the small businesses that handle IT in-house will have to pay for the kind of managed IT services CMIT Solutions offers — such as the 24/7 monitoring and maintenance service CMIT Marathon and the business continuity package CMIT Guardian.

“That 82 percent that handles its IT in-house — it’s not that they want to do that,” says Frank Picarello, CMIT Solutions’ COO and a member of CompTIA’s executive board. “They’d much rather run their businesses than manage their IT needs, but most don’t think they have world-class alternatives. They’re looking for the kind of affordable, consistent IT services that can help them stay competitive. You realize, ‘Oh, my God, there’s an enormous opportunity here.’ The market is ripe for a franchise model like ours.”

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