FINAL WORD
Channel companies based in the UK and across Europe are looking further afield for growth opportunities , specifically the Middle East .
When it comes to adaptability , few can rival the IT channel . When customers began to expect advice as well as fulfilment , partners elevated themselves to the position of trusted advisors . When mounting budgetary pressures made enterprises question large upfront capital expenses , the channel saw the potential of these groundbreaking ideas and adapted with cloud and managed services-led offerings .
Now as the pace of digital transformation further accelerates , partners are stepping up to champion innovation and empower enterprises with a digital edge .
This adaptability is underpinned by foresight . After all , channel players know that if they act only when change is inescapable , it will already be too late . In the region ’ s hypercompetitive ecosystem , those who stand by the sidelines will soon be rendered redundant .
For channel players therefore , keeping their finger on the pulse of the market is not an option , it is an imperative . So , as the new year kicks off , they must remain keenly aware of how the market is once again shifting , and what they will need to do to stay ahead .
Here are four predictions on what will drive channel partners and their customers in 2024 .
Prediction 1 , demand for subscription
We will see strong , continued growth in demand for subscription services in 2024 , as the move from capex to opex gains momentum . A key driver for this is the current economic conditions we are seeing , which are some of the tightest the industry has experienced since the recession of 2008 . At present , it is common for companies operating in the channel to be asked for letters of credit or bank guarantees when transacting business , which demonstrates the very real pressure on cash in the system , a situation which will continue into 2024 and even 2025 .
Moving to Opex via subscription services makes a lot of sense and provides an instant remedy to cash flow issues in the channel . Channel partners that embrace this trend will be the ones that see the most success .
However , there is a big caveat here . Subscription services will only do well if they are properly supported by a robust set of relevant SLAs and guarantees . In fact , we are now entering a new phase in technology procurement where SLAs are becoming differentiators and , in many cases , the ultimate decider in purchasing decisions .
Companies that are leaders in their sectors are recognising this shift and making innovative leaps forward by ensuring that their SLAs are tied directly to customers ’ C-level priorities . For example , in the data storage space , SLAs covering energyefficiency , capacity density , and data loss protection are now crucial factors in subscription adoption , and this trend will continue in 2024 and beyond .
Prediction 2 , skills shortage will worsen
The skills shortage for the technology sector will worsen in 2024 , driven by increased demand and competition for technology specialists , resulting in demand for higher wages . This will put further pressure on
INTELLIGENT TECH CHANNELS 71