Equinix, Inc., a global interconnection and data centre company, has announced its predictions for the Channel in 2019.
The predictions from EMEA Channel expert, OrenYehudai, senior director at Equinix, highlights what to expect in 2019 across the sector. The forecasts outline the evolving technology and data trends impacting the tech industry and Channel landscape, requiring Channel players to adapt in order tosurvive.
With a geographic footprint spanning 52 global markets, serving more than 9,800 customers, Equinix says it has developed unique data-driven insights into the key factors influencing enterprises as they re-architect for success in the digital economy. Key predictions for the resulting impact on the Channel include:
- The power of
cloud – By 2021,
European spend on cloud will hit £100 billion. Enterprises must make
critical decisions on IT infrastructure as they adopt cloud services or
fail to compete in the digital economy. The speed of demand and
consumption of cloud services is both a huge opportunity and a threat for
many resellers. It’s not just the new skills they need to acquire – as
most are very well-equipped in picking up new technologies. The main
challenge is the internal changes required from them. They will have to
adapt to a monthly billing system, change compensation plans to match new
purchasing patterns and accelerate the development of consulting and
‘cloud-complementing’ services. IDC stated that at least 30% of the
Channel industry players will not exist in the format we know them today
by 2021 – this means some big changes for the Channel industry in 2019.
- Changing the
Channel business model – With the
evolution of technology changing at a rapid pace, businesses will need to
ensure their IT structures are flexible so they can adapt and embrace
change. Trends like 5G, AI and blockchain, are no longer just concepts for
conversation but vital business tools, and to advise on their
implementation, partners must look to coopetition, developing joint value
propositions with specialists in the field. New Channel partners are
emerging without the constraints of legacy models – established players
will have to adapt, merge, or face extinction.
- Knowing security – With GDPR now in play, data privacy
and security are front of mind for all businesses. Legislation changes and
the public nature of breaches mean all employees are expected to have an
awareness of data privacy. At the same time, the costs of launching
successful attacks have significantly decreased in the last few years. Today
more than ever, security is a topic in any IT and business decision. It is
no longer solely in the hands of security resellers and CISOs – everyone
in the Channel has to be well-informed of all possible security issues and
how businesses can prepare for, and preferably, avoid them.
- The birth of the
eco-system sales – The three
trends above create an exponentially more complex IT market. Pillars which
were historically separated (e.g. security, storage, servers, networks, next-gen
technologies) have become part of the same conversation. The adoption of
cloud reduced the barrier of entry to the IT market and niche start-ups
are becoming more common. Making the right IT decisions have an immediate
effect on an Enterprise’s ability to roll out new services faster,
increase customer experience and deliver value to the customer. All of the
above mean a level of complexity that leaves most partners unable to
deliver an end-to-end solution on their own. This leads to a new mode of
delivering value and addressing customers’ needs – the eco-system sale.
Partners of all types are looking for others to join forces, develop joint
offerings, or bid together on specific deals. They seek the missing pieces
in the puzzle to deliver the full picture to their customers.