Out in the cold?

The bring-your-own-device boom will create huge disruption in the channel as individual employees take the procurement and support of hardware devices into their own hands, finds Doug Woodburn

What one hand giveth, the other taketh away may be the phrase that best summarises how the bring-your-own-device (BYOD) craze will play out in the channel.

According to research from TechMarketView, BYOD - or BYOT [bring your own technology] as the analyst is calling it - represents a £2bn software and systems integration opportunity for the channel over the next five years.

But at the same time, BYOT could come as a blow to the traditional hardware channel as individual employees increasingly source the devices they use for work themselves and take greater command of support. Those who do not evolve risk being left out in the cold.

BYOT-related spend is set to mushroom from £176m in 2012 to £675m by 2016, according to the market watcher, as the number of employees adopting a BYOT model almost doubles to 9.5 million.

The fastest growth is set to occur among large firms with more than 500 staff, where the number of BYOT users is set to treble to three million by 2016. The number of BYOT users in mid-sized firms will double to two million over that period, TechMarketView said.

Talking to CRN, TechMarketView research director Phil Codling said the channel opportunity could be split into two chunks.

"There is a software opportunity, particularly around security and management software to minimise the risk of BYOD and to manage it and that includes virtualisation and mobile device management," he said.

"Then there are the services required to get all the integration together. We see opportunities for players with consultancy and implementation/integration capabilities to get the required systems up and running."

Resellers must ensure they are part of the client's BYOT journey from the start to avoid losing out, Codling counselled.

Shrinking market

However, BYOT could create opportunities and threats for the channel in equal measure, with hardware suppliers set to lose out on a growing chunk of potential device and support revenue.

"Resellers need to be very aware of this trend. When you get a substitution of corporate-provided PCs by individual-provided PCs, clearly you have money shifting out of the business channel into the consumer space," he explained.

"The channel also clearly has a major stake in supporting desktops. And we are seeing a gradual shift to more self-help and peer-to-peer support so this will again be a deflationary trend. BYOT will continue the trend by which individuals help themselves by seeking help from others."

Codling argued that hardware suppliers will be forced to evolve, perhaps by diversifying their range of support to include Apple's iOS or OS X operating systems or Android. There is also an opportunity for them to help clients implement BYOT subsidy or stipend schemes, although such programmes may have tax implications, he warned.

This model has already proved successful among tech firms, Codling said. "It gives them a halfway house in that they retain some control over the menu of options but the employees have a good-value device they can also use for their own personal use," he explained.

Chris Gabriel, vice president of solutions management at Logicalis (pictured, right), agreed that BYOT is a double-edged sword for the channel, but argued that the opportunities far outweigh the threats.

"As the transition to BYOD takes place, the support costs will go down as the users, rather than IT, begin to support themselves," he said.

"But the journey to BYOD is one of the most exciting we have seen in years for the channel."

Gabriel argued BYOD is doing to the client channel what cloud is doing to server and storage VARs, with those who do not evolve likely to be left behind. However, those who embrace BYOD, whether in terms of applications, security, datacentre or networking, will win out.

Trickle-out

"The trickle-out from BYOD to the channel is far greater than the potential drop in support," he said. "The biggest opportunity is around network upgrades and infrastructure. You have to understand access security, so we are throwing our weight behind the Cisco ISE [Identity Services Engine] product, which enables security access for BYOD."

Dave Ellis, director of new technologies at distributor Computerlinks, agreed with TechMarketView's findings.

"With BYOD, the supply chain for the devices themselves will become more fragmented as users source their own devices," he said. "But it opens up opportunity as these devices need to be managed and secured. You also need to have strong wireless infrastructure underneath because these devices do not use network cards."

Users will need to access standard corporate applications from their chosen tablet, laptop or smartphone, Ellis added, meaning resellers should be pushing access software from the likes of Ericom or Citrix. "Users in the field do not want to have to carry a laptop as well," he said.