Canalys: Transformation is the name of the channel game
Managed services and hybrid IT are key drivers to channel firms transforming their business in 2014
Three quarters of channel players in EMEA questioned by analyst Canalys are planning to transform their business models this year.
The market watcher questioned just over 300 channel firms across the region, concluding that the key drivers will be the gradual move to managed services and the hybrid IT environment, as customers make decisions about which technology services to outsource.
Canalys expects there to be an increase in spending in the commercial PC market as support for XP ends, which should naturally lead to an uplift in commercial PC refresh.
According to the results, virtualisation and the constant threats to security are also likely to drive channel growth as customers look to trusted partners to manage their complex solutions and services.
Alastair Edwards, principal analyst at Canalys, said: “It is great news that channel partners are expecting to see growth in both revenue and profitability. We expect this growth will be driven by the continual shift to software and services, as channel partners move their business models away from the hardware-centric world of the past.
“Partners will continue to sell hardware, but infrastructure decision drivers are becoming more software-oriented.”
However, Canalys said partners will continue to face budgetary pressure due to ongoing economic uncertainty particularly in southern Europe and the situation in Russia. For many channel players, the analyst said the key challenge will be how to transform their business to capitalise on the new opportunities available to them. Recruiting and retaining the right employees will be core, as will retraining existing employees to move away from low-margin product resale.
Edwards added: “Traditional partners that do not embrace new business models will struggle to grow as new technology buyers emerge and technology purchase decisions become a competitive differentiator.”