Tech Data uncovers trends in APJ technology sector with annual report
Tech Data, a TD SYNNEX Company, and a key player in global technology distribution and solutions aggregation, has launched an Asia Pacific & Japan (APJ)-centric supplement to its annual 'Direction of Technology Report'. The findings within this supplement deliver up-to-date insights on business performance, strategies, and future expectations from the regional channel community. The underlying trends and forecasts derived from the survey will help shape the technology landscape and influence industry stakeholders around the globe.
"The Direction of Technology Report reflects the voice of our partners," commented Jaideep Malhotra, President, Tech Data APJ. "It serves as a valuable resource, offering a snapshot of the evolving technology landscape and the pulse of the ecosystem. With our position at the centre of the technology ecosystem, Tech Data is dedicated to empowering partners in attaining business model agility and building capabilities essential for success in the market."
As per the report's key findings, 40% of the partners show a keen interest in assimilating Artificial Intelligence/Machine Learning (AI/ML) solutions into their business structure within the next two years. The lucrative nature of AI/ML solutions has become evident with a 35% revenue boost expected from this inclusion alone.
Another key observation points out that 62% of partners are prepared to expand their technology and solution offerings. Underscoring the prominence of cybersecurity, 63% of partners have identified security as the top technology sold, with half the partners labelling cybersecurity certifications and standards as major investment areas. As such, it is clear that cybersecurity and infrastructure are at the leading edge of customer purchasing decisions.
Findings also highlight a shift in partner business models towards services prioritising flexible consumption – although hardware remains a significant business driver, the sale of IPs has seen a 9% increase. In face of increasing competition and margin pressure, 63% of partners believe that these pressures are key challenges they currently face, with 59% identifying credit and financial scalability as a significant obstacle.
Nonetheless, despite the challenges, optimism pervades, with 79% of partners forecasting future growth. As the partners grapple with normal cycles of change and unexpected disruptions, maintaining flexibility will be vital for their success and that of their enterprise clients. As emerging technologies such as AI and cybersecurity tools are building upon well-established offerings, partners will play a pivotal role in guiding customers towards high-growth products by ensuring a strong and secure foundation.
