Intelligent Tech Channels Issue 71 | Page 72

FINAL WORD
businesses , creating a situation where they must pay over the odds to secure the skilled labour they need .
As a result of this wage driven skills shortage , there will be increased demand for managed services in order to ensure efficient , SLA guaranteed operations , despite labour shortages .
The skills shortage will also impact on how the channel embraces AI for their own business as well as selling AI technologies to customers . Customers want to engage with AI services but many do not currently have the data scientists to make those investments .
The channel needs to better establish what their value proposition is around AI and what AI actually means to potential customers . In 2024 , we will see more emphasis on the channel investing in AI training and education , in order to bridge the skills gap through consultancy . Provided they are willing to invest and learn , channel partners can ride the AI wave , rather than be left behind .
The impact of the skills shortage will also be felt in containerisation in the coming year , an area that continues to see strong growth . The skill sets around Kubernetes are very specialised and , in the channel , it is an area that is dominated by boutique partners , rather than larger VARs .
This is an area that is primed for further growth and there is a real need for more channel partners to develop Kubernetes skills and take advantage of this opportunity . We may also see those skills being secured by the larger VARs through acquisitions .
Prediction 3 , sustainability key priority
Despite the current economic climate , sustainability will remain a key priority in 2024 and is now firmly on CEO agendas . It is one of the top three requirements in all tenders we see . However , the market is looking for sustainable end-to-end solutions that are not just focused on cost , or even a single vendor , but rather a holistic view of sustainability across the datacentre .
The energy crisis , carbon neutral pledges , compliance with Scope 1 and 2 emissions as well as a host of other standards is driving the sustainability agenda . Ultimately , being more sustainable is important for people and the planet and essential for organisations to adopt greener practices .
Now more than ever there is an opportunity for channel partners to play a key role in sustainability efforts , by leveraging their relationships as trusted advisors to their customers . In fact , we are now seeing more and more partners with a sustainability division within their business .
Channel partners are ideally placed to help educate customers on what technologies will make a meaningful impact on their carbon emissions , help them cut through the greenwashing of inefficient solutions , and even persuade relevant stakeholders within the business by presenting key data .
Educating and helping customers choose and implement technologies that drive energy and power efficiency throughout the whole IT stack is key to sustained success in 2024 .
Prediction 4 , consolidation in channel
Last year , we saw consolidation in the MSP and VAR spaces and that is likely to continue in 2024 , as bigger companies that are cash rich are able to make acquisitions .
A key driver of these acquisitions is the need to secure top talent , and a skilled digital workforce . The skills shortage means that this talent is not readily available to recruit , and training the skills into an existing workforce can take a lot of time . Securing skills such as AI expertise will open up a bigger total addressable market for new customer acquisition . Consolidation can be positive for the channel as it generally results in fewer companies that can offer more diversified services .
At the same time , channel companies based in the UK and across Europe are looking further afield for growth opportunities , specifically the Middle East . We will see more partnerships and acquisitions in 2024 as that market continues to grow . •
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