The results of TD SYNNEX’s second-annual Direction of Technology Report demonstrate how many technology resellers are expanding despite quickly shifting market conditions and the explosion of interest in artificial intelligence (AI) throughout the ecosystem of technology business partners. According to a worldwide study of over 550 technology resellers, technology partners are really preparing for a changing reality by adjusting objectives and business offers, even in the face of several market headwinds.
Five major conclusions from the study, which is based on a survey done in collaboration with Canalys, are outlined below along with some of the most striking data points:
The number of partners providing AI/ML solutions rose by 625% in a single year. As a matter of fact, partner offerings are dominated by a number of high-growth technologies, including cloud, AI and IoT, cybersecurity, and hyperscale infrastructure. The most popular technology offered was security, closely followed by networking, servers, storage, and hybrid cloud.
Changes in skill requirements highlight holes in the talent pool. The greatest business skill required, according to over a third of respondents (38%) was managed services; the highest technological skill needed, according to the same number, was security. The most in-demand technological skills among partners worldwide were security, networking, and data analytics; the most in-demand business skills were managed services, professional services, and business planning. Regional differences in skill requirements show how each area is changing to suit its marketplace. All four areas had, nonetheless, a significant demand for managed services.
A Canalys projection indicates that 73% of IT investment in 2023 will be partner delivered, highlighting the technology channel as a crucial go-to-market approach for generating value. The technology that is most often provided by partners is cybersecurity (91.5%). 77% of channel partners say they have increased revenue this year. They are doing this by adapting their business models and product offerings to the ever-changing needs of the market.
The portfolio mix is changing: Sales of product lifecycle services, owned IP and resale of packaged services rose 150% to 200%.
Around 50% more survey respondents identified as managed service providers (MSPs) than the year prior, illustrating the explosive growth of this market.
The number of partners that reported environmental, social and governance (ESG) management as important to their businesses jumped 125%. 37% of partners report additional ESG investment and 38% perform ESG through hybrid or outsourced partnerships.
IT Channel Partners
According to Rich Hume, CEO of TD SYNNEX, "the business partner ecosystem is a bellwether for the global technology landscape, and this study provides actionable insights for any business navigating a myriad of macro changes like disruptive new technologies and market challenges worldwide. It’s heartening to see that our channel partners are optimistic and confident about the future through this year’s report. They are also showcasing flexibility in their business models by putting an emphasis on emerging technologies and adapting to shifting customer demands."
“The Direction of Technology Report is purpose built to help any business better understand and best capitalize on the latest trends and demands of the technology ecosystem,” said Jill Kermes, Corporate Vice President, Global Corporate Communications and Citizenship at TD SYNNEX. “This is directly aligned with our purpose of empowering our global partners to achieve great outcomes with technology. We look forward to bringing forward the insights of this year’s global report in addition to unveiling supplements with data specific to each global region as well as content specifically focused on MSPs.”
The response rate of channel partners quadrupled in the second year of the survey and report. Over 550 B2B channel partners from over 60 countries in the global regions of North America, Europe, Latin America and the Caribbean (LAC), Asia Pacific and Japan (APJ), including resellers, systems integrators, service providers, MSPs, and more participated in the survey, which was conducted from May to July 2023. The regional reports for North America, LAC, and APJ will be released later this year, and the European supplement is now accessible.
