Jan/Feb 19 - ChannelVision Magazine

Much of the optimism among the IT channel, as well as the perceived broadening of customer opportunities, can be attributed to the buzz around emerging technologies. From IoT solu- tions to robotics and drones to automa- tion, artificial intelligence and augment- ed reality to blockchain and biometrics to 3D printers, sentiment for emerging tech is mainly positive, suggest Comp- TIA findings, despite this maze of op- tions to consider. Research firm IDC, incidentally, predicts that emerging technologies such as these will account for almost a quarter of total information technology spending by 2021. Perhaps using the word “buzz” around emerging technology is unfair because when asked to name the ma- jor factors behind the decision to offer emerging tech, customer demand was far and away the number one response, named by 72 percent of channel orga- nizations. Better revenue opportunity than current portfolio was second, at 59 percent, followed by competitive differ- entiation at 52 percent. What’s more, while many chan- nel firms still are early on the adoption curve, three-quarters of respondents say they view these new paradigms as rev- enue opportunities, compared with just 14 percent that consider it a threat to the channel and another 9 percent that are ambivalent to the potential. A full half of all respondents, meanwhile, expect most of their revenue in the next two years to come from net-new business. “It stands to reason that much of that new business could be predicated on emerging tech solutions,” argued CompTIA analysts. At the same time, channel partners are well aware they face growing pains and learning curves before revenue opportunities are realized. Indeed, respondents ranked the skills gap for emerging technologies as the top rea- son for a pessimistic outlook for the future, up 12 percentage points from 2016. Additionally, when asked what things will be needed to help ensure hope for the channel’s future, 54 per- cent of respondents cited both techni- cal and business training for them- selves, while 51 percent identified the need for skilled workers, particularly in the areas of emerging tech. Both per- centages represent a significant jump from 2016, said CompTIA. “With any new endeavor, come challenges; emerging tech is no differ- ent. Available resources, skills training needs, hiring difficulties and the fear of the unknown are among the hurdles that channel respondents say they are grappling with as they dive into these new areas,” said CompTIA researchers. “This gap builds upon existing challeng- es the channel is facing as it continues efforts at digital transformation.” The emerging tech challenges are fairly consistent in hitting chan- nel firms of all sizes, though medium sized companies (50 to 499 employ- ees) appear hardest hit. This is likely due to the fact that the largest firms have the resources and reach to deal with cost of entry and skills gap chal- lenges, while small firms are only moving slowly into emerging tech as needed. Medium-sized firms are large enough to dive in, but typically face some resource constraints, shows the CompTIA study. “It’s not unlike the advent of cloud computing 10 years ago, which prompted a host of questions from solution providers,” said CompTIA. Only this time around, the early days of deployments are breeding more optimism compared to the early days of the cloud, which channel partners and market observers viewed early on as mostly disruptive, if not alto- gether threatening. o channel management Source: CompTIA What’s Needed to Achieve Optimistic Outlook for Channel Source: CompTIA IT Staff Business Staff Availability of skilled IT workers Training (IT and business/sales) Younger generation embracing the channel as a profession Rethinking of the channel value proposition and what it... Partnering with complementary channel providers Support from industry trade associations/business groups Vendors truly committed to partnerships/decrease in channel... More widely available and valued certifications and credentials 53% 47% 61% 44% 40% 38% 35% 36% 39% 36% 31% 32% 34% 31% 41% 28% Emerging Tech Experimenting With or Currently Offering Source: CompTIA Internet of Things (applications/analytics/managed services) Internet of Things (hardware) Artificial intelligence/Machine learning Virtual reality Blockchain Augmented reality Drones (hardware) Biometrics 3D printing Drones (applications/analytics/managed services) Robotics 5G 48% 43% 42% 37% 34% 27% 25% 24% 23% 23% 20% 20% 40 Channel Vision | January - February, 2019