technolog y reseller.co.uk NEWS : TRENDS 05 Emerging technology fuels positive outlook in IT channel The majority (58%) of UK channel organisations are optimistic about the future of the IT channel, finds the CompTIA State of the Channel Report 2018 . Just 19% are pessimistic about what’s to come. The IT trade association’s survey of 250 UK companies shows that positivity in the channel is being driven by the opportunities presented by cloud computing (56%) and emerging technologies like AI, VR and blockchain (41%). At the same time, growing use of technology by all types of customer is expanding the need for IT experts (43%), with 34% identifying growing customer demand for vertical expertise and consultation, especially in professional services, retail and manufacturing. In response to interest in new technologies and new routes to market, 64% of UK channel organisations are planning to change their mix of offerings next year. Almost half (47%) expect to generate more revenue from net new business. CompTIA’s report also identifies key challenges, particularly around the skills gap. More than half of IT staff say the availability of IT workers and a lack of training remain an issue. More than one third (37%) are concerned by the paucity of younger employees joining the channel. The skills shortage appears to be stopping organisations from making the most of opportunities presented by new technologies, with 38% complaining about the difficulty of finding people with the right skills and 60% identifying a need for technical training. Almost half (47%) cited cost of entry as a barrier to the adoption of AI, VR and blockchain. www.comptia.org IT businesses unsure about immigration changes Two thirds (67%) of IT business leaders are worried about immigration changes caused by Brexit, fearing they will make it harder to recruit people with the right skills (33%) and will add time (37%) and cost (30%) to the recruitment process. Research by Blacks Solicitors shows that while 83% of businesses in the IT industry currently employ staff from the EU, 63% of business leaders expect changes to immigration law to deter them from employing EU citizens after Brexit. Around one third (30%) say they feel under-prepared for Brexit and 20% say they have limited understanding of how it will affect their business and employees’ rights. To help employers prepare for the changes, Blacks Solicitors is hosting a series of seminars and training sessions on immigration and the Brexit process. www.lawblacks.com/seminars Brexit is greatest threat Brexit and rising costs are much the greatest threats to the IT industry in the UK and Ireland, according to a survey of 800 IT and data centre professionals by Uninterruptible Power Supplies Limited (UPSL). Cited by 35% and 32% respectively, political uncertainty and rising costs were far ahead of the third placed threat, the growing regulatory burden, mentioned by just 13% of respondents. When UPSL last ran its survey in 2016, the rising cost of energy was seen as the biggest threat, cited by 77% of respondents. Political uncertainty was not even in the Top 10. In a new question this year, IT professionals were asked ‘What impact do you think Brexit will have on your business?’. More than 60% said the impact would be negative, compared to 15% who felt its impact would be positive. UPSL Sales and Marketing Director Tim Wilkes said: “When comparing the latest results to those from 2016, it is clear there’s been a significant shift in attitudes. Political uncertainty didn’t register as a top ten response back then but that was before the Brexit vote and the impact that it’s had on the value of the pound.” www.upspower.co.uk www.kohlerpower.com Remote monitoring Cyviz, a provider of collaboration spaces and smart meeting rooms, has designed and installed a sophisticated offshore control room on Neptune Energy’s Gjøa platform in the North Sea without any disruption to existing operations. The 24/7 control room, which monitors safety, automation, wells and oil and gas production, gives operators instant access to mission-critical information from many sources. The six projectors used to provide an overview of operations are quieter and generate less heat than their predecessors for a more comfortable working environment. The control room can be monitored and supported remotely and is not expected to require replacement parts for up to five years. www.cyviz.com Falling revenues could boost IT investment More than nine out of 10 UK business chiefs (93%) expect revenue to fall next year, according to research by MHR Analytics, a specialist provider of business intelligence and analytics solutions. Brexit was the largest factor in this, cited by 57% of the 200 decision-makers in large and medium-sized businesses surveyed, followed by reduced customer spending (22%) and GDPR (10%). The good news for IT resellers is that 59% of businesses plan to address any fall in revenue by boosting investment in IT in 2019; 48% believe marketing will also see an increase and 46% are planning to boost investment in sales. mhranalytics.com Maintaining operations is IT’s main objective Everyday IT tasks are taking precedence over more creative projects, claims Ivanti, a provider of IT Service and Asset Management Software Solutions. A survey of 300 IT decision-makers carried out on its behalf reveals maintaining critical infrastructure and IT systems to be the primary objective for IT (cited by 56%), followed by supporting new digital business initiatives (33%), enabling strategic innovation (28%) and training on IT security (23%). www.ivanti.com Copyright (c)2018CompTIAProperties, LLC,AllRightsReserved |CompTIA.org|
[email protected] November2016 KEYPOINTS Emergingtechnologieswillbeaforce. While still nascent for many channel firms, emerging technologies are nonetheless becoming agrowing partof portfolios. Respondents cite them as the No. 1 driver of change across the tech ecosystem. The ability to build a business around artificial intelligence, virtual reality, blockchain,drones,IoT,etc.,willtakecompaniesintoafuture growthpath,forsure.Butgettingtherewilltestfirmson severalfronts;mostimportantly,inareasofskillsandtraining, andcostofentry. Specializationisgettingmorereal. Customerdemand fora technology providerwith vertical industryskillsandapplicationsknowledgeisontherise.Nearly twothirdsofchannelfirmssaytheyembarkedonavertical specialtytosatisfycustomerdemandandasacompetitive differentiator.Embracinganichespecialtyinretail,healthcare, orothersectorwilldeliveraprovencompetitiveadvantage. Butagain,thechallengeliesinhavingtherightskillsand training. And it’s important to distinguish “real” vertical applicationsspecializationfromthemorehorizontaltypeof infrastructuresalestocustomersthatjusthappentobeinthe sameindustry. It’saninterestingtimetobeinthebusinessoftechnology,asanychannelfirmorothertech influencerwilltellyou.Theresearchinthisreporthighlightsanumberofdynamicshappening acrossbusinessmodels,go-to-marketstrategies,customerinteractions,humanresources,and skillstraining.Wealsosharefindingsaroundverticalindustryspecializationandexplorethe extenttowhichtoday’schannelfirmsareincorporatingemergingtechnologiessuchasartificial intelligence,blockchain,virtualreality,IoT,etc.,intotheirportfolios.Customerdemandisdriving agroundswellofdecision-makinginthechanneltoday,atrendalsoexploredinthisreport. . Newtypesofcompetitors,partners. Trends in theTechnologyEcosystem 7 th State of the Channel September2018 RESEARCHREPORT Halfof channel firmsexpect revenue to come from net-new business innext2years Thechannelecosystemisexpanding,whichiseithergood news or bad news for traditional partners. Mostly it dependsonperspective.Therearenewcompetitorsto face,butalsothepotentialfornewpartners.Themost prevalentnewfaceintheecosystembelongstocloud- based ISVs and their SaaS-focused reseller/referral partners.Sixin10channelfirmsreportencounteringthis typeofcompanyintoday’scompetitivelandscape.The other new competitor/partner types include digital marketingagencies,which46%ofrespondentsseeinthe markettoday.Androughly2in10channelfirmsarenow competing with non-technology companies altogether, specificallyaccountingandlawfirmsthatinfluenceor resellsoftwarepertainingtotheirrespectiveprofessions.