Despite cautious spending due to ongoing economic issues, the worldwide total addressable IT market is forecast to grow 3.5 percent to reach $4.7 trillion this year, according to new research from analysts at Canalys. Partner-delivered IT technologies and services, meanwhile, will exceed $3.4 trillion in 2023, accounting for more than 70 percent of the global total addressable IT market. Overall, IT spending via partners will grow 3.7 percent outpacing direct spending between customers and vendors. “There’s an exciting future ahead for this industry,” said Matthew Ball, chief analyst at Canalys. “We’re looking at a sector that will nearly double in size over the next decade, and an ecosystem of hundreds of thousands of vendors and millions of channel partners. Given the importance of the channel, the success of vendors will increasingly rely on their resell, co-sell, co-marketing, co-retention, co-development and co-innovation strategies.” Canalys expects the industry’s growth to rebound next year, fueled by businesses and governments worldwide accelerating their investment in technology refresh, pushing ahead with delayed projects and new initiatives. Initial forecasts for 2024 expect more robust growth of 6.9 percent overall, with IT spending hitting $5 trillion for the first time. Cybersecurity is expected to remain a key growth opportunity, increasing by 11.1 percent to $79 billion in 2023, reflecting the heightened demand for securing data, systems and people against rising threats. Network infrastructure likewise is expected to reach record highs, as fulfillment of campus switch and Wi-Fi 6/6e access point order backlogs boost spending by 13.9 percent to $72 billion. Price rises, renewals and the upselling of subscriptions will grow cloud application software spending by 19.3 percent to $215 billion, said Canalys, while optimization of public cloud spending, cybersecurity posture transformation and business adoption of generative AI will create further consulting opportunities and contribute to IT services spending expanding by 7.5 percent to $1.5 trillion. Managed IT services alone, suggest the findings, will become a half-trilliondollar business. On the other hand, sales of servers, storage and client devices are expected to suffer negative or flat growth after the strong demand surge fueled by accelerated data center buildout by cloud service providers and enablement of remote workers during the COVID-19 pandemic. Of course, AI servers will be a bright point. “The long-term technology megatrends will continue to drive growth opportunities for both vendors and channel partners in 2023,” said Ball. “Digital transformation, cybersecurity, compliance, sustainability and the emergence of generative AI will underpin IT services engagement, the adoption of new software and infrastructure refresh.” But there are still major headwinds for the industry to navigate, continued Ball: “The threat of recession, rising interest rates, high inflation, trade disputes and extreme weather events will continue to cause much disruption and affect confidence.” Spending in North America, for its part, will grow 2.8 percent this year, down from 8.5 percent in 2022, to account for 37.7 percent of the total addressable market. EnTelegent Solutions Inc. (ESI) announced the addition of Jerry Doyle, national channel sales manager for the Southwest, covering Arizona, California, Nevada, New Mexico and Utah. Doyle brings nearly three decades of experience in the channel to the company. Most recently, Doyle served as senior account director at Windstream Enterprise in Las Vegas, where he grew his territory, selling SD-WAN and network services solutions to large enterprise clients. Channel to Drive More Than 70% of IT Spending CHANNEL MANAGEMENT EnTelegent Names Southwest Channel Manager 40 CHANNELVISION | SEPTEMBER - OCTOBER 2023 Source: 451 Research; S&P Global Worldwide Total Addressable IT Market by Category, 2023 Forecast Source: Canalys 11% 11% 11% Patch management Problem management Change management 100% Total IT spend: US$4.7 trillion Growth: 3.5% 0.9% 1.0% 1.7% 90% 80% 6.9% 8.9% 17.8% 30.5% 32.3% 70% 60% 50% 40% 30% 20% 10% 0% Components and peripherals 2023 forecast Unified communications Cybersecurity Client devices, imaging and printing Infrastructure Software Telecommunications services IT services US$43 billion Growth: -7.1% US$45 billion Growth: -2.6% US$79 billion Growth: 11.1% US$324 billion Growth: -2.8% US$417 billion Growth: -0.1% US$833 billion Growth: 5.5% US$1,423 billion Growth: 0.9% US$1,506 billion Growth: -7.1% Automated Fingerprint Identification System Market Source: Market Research Futures 2018 2019 2020 2021 2022 2023 2024 2025 2026 2030 2031 2032 67.83 11 13.46 Market Size in USD Bn
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