TD SYNNEX releases latest Direction of Technology Report

The global survey of more than 550 technology resellers finds that despite the many headwinds across the industry, technology partners are meaningfully preparing for a shifting reality by rebalancing priorities and business offerings.

Rich Hume, Chief Executive Officer at TD SYNNEX said, “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 around the globe. Through this year’s report, it’s encouraging to see that our channel partners are confident and hopeful about the future and are demonstrating flexibility in their business models by focusing on emerging technologies and responding to changing customer demands.”

The report, which is based on findings from a survey conducted in partnership with Canalys, can be summarised into five key findings, summarised below with some of the most compelling data points:

• In just one year, the number of partners offering AI/ML solutions increased 625 per cent. In fact, several high-growth technologies like cloud, AI and IoT, cybersecurity, and hyperscale infrastructure are dominating partner offerings.
• Security was the top technology sold, followed closely by networking, servers and storage, and hybrid cloud.
• Shifting skills needs to reveal gaps in the talent pipeline. More than a third of respondents (38%) said managed services were their top business skill needed, while the same percentage said security was their top technology skill needed.
• Following security, networking, and data analytics were the most in-demand technology skills among partners globally, and after managed services, professional services and business planning were the most sought-after business skills.
• Skills needs vary by region – illustrating how each region is evolving to meet the needs of their markets. However, a common thread was the high demand for managed services across all four regions.
• 73 per cent of IT spending will be partner delivered in 2023, according to a Canalys estimate, underscoring the technology channel as an essential go-to-market strategy for capturing value.
• Cybersecurity leads the way as the technology that is most often partner-delivered (91.5%).
• 77 per cent of channel partners report seeing revenue growth this year, and partners are achieving this by shifting their business models and offerings in real time to meet changing market demands.
• Portfolio mix is changing: Sales of product lifecycle services, owned IP, and resale of packaged services rose 150 per cent to 200 per cent.
• Around 50 per cent 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 per cent
• 37 per cent of partners report additional ESG investment and 38 per cent perform ESG through hybrid or outsourced partnerships.

In the second year of the survey and the report, the response rate of channel partners doubled. The survey was conducted from May to July 2023 and captured feedback from more than 550 B2B channel partners from over 60 countries in global regions of North America, Europe, Latin America, and the Caribbean (LAC), and Asia Pacific and Japan (APJ) - spanning resellers, systems integrators, service providers, MSPs and more.

The European supplement is now available, and regional reports for North America, LAC, and APJ will be published later this year.