Partners resilient despite challenging business environment and pandemic disruption
New research from Channelnomics reveals that solution providers recognize the value and promise of IT solutions conducive to service-centric practices. Despite a challenging environment defined by supply-chain shortages, high inflation, and economic turmoil, 72% of channel partners expect meaningful revenue growth in 2022.
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In this year’s just-released Channel Forecast report, Channelnomics concludes that partners have adjusted their sales and service practices to support the rapid shift to remote work and e-commerce over the past two years amid the COVID-19 pandemic.
“One thing that’s become clear in the past year is that the remote workplace is here to stay,” said John Spinda, research manager at Channelnomics and the author of the Channel Forecast report. “This trend has somewhat delayed many channel partners’ transformations from transactional product sales toward cloud and managed services. However, service-centered solutions continue to lead the way in generating revenue and are viewed as having the most potential in 2022 by channel partners.”
Through multi-year trending analysis, Channelnomics expects partners to report similar revenue growth this year to what they reported in 2021. Also, partners predict marginally better profit performance and anticipate hardware and software sales to trend positively in response to the demand for remote services.
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Partners rated IT automation, along with cloud infrastructure and services, as top growth drivers, partly due to the increasing complexity and maturity of client IT requirements.
“Digital transformation and leveraging technology to automate operations and processes are trends accelerated by the pandemic that have now become mainstream,” said Lawrence M. Walsh, CEO and chief analyst of Channelnomics. “End customers need the expertise and skilled resources of channel partners to identify, acquire, and operationalize automation technologies for their businesses. The adoption of automation at all levels will fuel partner growth in 2022 and beyond.”
Channelnomics, the leading provider of business strategy and research for improving the performance of companies’ direct and indirect channels, examines partner performance year over year to provide a forecast for the channel.
In the 2022 Channel Forecast report, details include:
• Channel growth and profitability trends
• Technology growth segments
• Strategic partner investments
• Performance expectations for the future
