CV_MayJune_24

Channel partners certainly could use some hero providers. At the same moment in time they are being asked to help customers navigate the transformation of their businesses and IT operations, channel partners are facing similar transformations within their own businesses. Indeed, neither end users nor trusted advisors are immune to current macroeconomic conditions, the accelerated rate of technological innovation and the opportunities and complexities of the ongoing AI revolution. According to CompTIA’s 2024 State of the Channel survey and report, as many as a half dozen factors were cited as potential negatives that could derail the positive direction of the channel by about a third of channel partners surveyed. Those factors range from changes in buying behavior to macroeconomic uncertainties to the cybersecurity threat landscape. The top challenges sited in IDC’s recently completed North American partner survey, meanwhile, included data sovereignty, vendor relations, economic uncertainty, the digital-first economy and skills shortages. “These are the top 5 challenges among a long list that seems to represent a partner view of navigating many challenges,” wrote Steve White, IDC program vice president of channels and alliances. All the while, “Channel firms have grown far more selective about vendor relationships in recent years,” reported CompTIA researchers, and during the past year, in particular, the number of vendors they partner with has reduced on average, at least among the MSP and IT channel partners surveyed. Since CompTIA began tracking partner program participation 11 years ago, the “sweet spot” in terms of the number of vendor programs channel firms were formally engaged with was between five and 14 vendor programs, said the trade group. “That’s changed,” proclaimed the 2024 CompTIA survey report. “This year’s study finds, that of all respondents, the largest portion say they participate in between one to nine vendor programs, with a sharp year-over-year increase in the group enrolled in just one to four programs.” What’s more, program enrollment numbers have declined in every category on the list above one to four programs. IDC likewise noted in its 3Q23 survey of channel partners that vendor relationships were fewer in number. CompTIA researchers believe many factors come into play when accounting for the drop off in program numbers. “Differing business models and new adjacent roles have allowed channel partners to thrive in new and varied ways in the industry,” said CompTIA’s analysts. “That has impacted how they interact with vendors.” This seeming shift in vendor relations, along with the numerous challenges facing the market today, would seem to suggest that channel partners, more than ever, require vendor partners that help them evolve via market clarity and transparency, technology expertise, solution and billing consolidation, smart enablement tools and management simplicity. Say hello to the super agents in our 2024 TSD Directory. Holding Out for Heroes LETTER Martin Vilaboy Editor-in-Chief martin@bekabusinessmedia.com Brady Hicks Contributing Editor brady@bekabusinessmedia.com Gerald Baldino Contributing Editor gerald@bekabusinessmedia.com Percy Zamora Art Director percy@bekabusinessmedia.com Jen Vilaboy Ad Production Director jen@bekabusinessmedia.com Berge Kaprelian Group Publisher berge@bekabusinessmedia.com (480) 503-0770 Michael Burns National Account Executive michael@bekabusinessmedia.com (262) 993-9116 Bryan Dwyer Senior Account Executive bryan@bekabusinessmedia.com (585) 727-7002 Beka Business Media Berge Kaprelian President and CEO Corporate Headquarters 10115 E Bell Road, Suite 107 - #517 Scottsdale, Arizona 85260 Voice: 480.503.0770 Email: berge@bekabusinessmedia.com © 2024 Beka Business Media, All rights reserved. Reproduction in whole or in any form or medium without express written permission of Beka Business Media is prohibited. ChannelVision and the ChannelVision logo are trademarks of Beka Business Media Factors Contributing to a Diminishing IT Channel External factors 37% Weak profit margins of subscription sales 30% Competition from non-traditional sources 30% Cybersecurity threat landscape 30% Customers buying direct 29% Adoption of generative AI tools 29% Workforce skills/talent shortage 25% Vendor programs not meeting customer needs 19% Commoditization of product sales 19% State of business regulation 16% Source: CompTIA Number of Vendor Channel Partnerships 2023 2024 20 or more 8% 6% 15 to 19 14% 8% 10 to 14 21% 16% 5 to 9 27% 25% 1 to 4 20% 29% None 7% 11% Source: CompTIA 6 CHANNELVISION | MAY - JUNE 2024

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