TD Synnex: Data Analytics, AI/ML Among MSPs' Top Areas for Growth

MSPs are reacting to increasing market demand for new technologies.

Edward Gately, Senior News Editor

November 6, 2023

3 Min Read
TD Synnex MSP growth
Sergey Tinyakov/Shutterstock

Findings of a new TD Synnex special report show MSPs expect data analytics, artificial intelligence/machine learning (AI/ML) and augmented reality/virtual reality to be their top areas of growth.

These top growth areas overtake networking and security, which were the top revenue drivers over the past 12 months.

This new special report is a supplement to the TD Synnex 2023 Direction of Technology Report, conducted in partnership with Canalys. This new report focuses on the survey respondents that identified themselves as MSPs. While 65% of respondents noted business consulting and planning investments were imperative, a full 80% said that expanding their solution offerings was important or very important for growth.

Sergio Farache, TD Synnex's chief strategy officer, said there are several critical findings, the first is the interest or relevance for the MSPs in high-growth technology areas, including cloud, hybrid cloud, security, analytics, data, IoT and AI.

TD Synnex's Sergio Farache

"Especially in AI, we see a significant surge, a 625% increase year over year in terms of the interest of the MSPs in that specific topic," he said. "The other elements are related to the concern about the skill gap that exists in terms of the MSP, how they either hire or develop their existing resources to be able to address these new technologies versus the skills that they have and how to deal with that. The other element that we see is ... partners are shifting their portfolio to adapt to the conditions of the market based on those growth areas to capitalize on the potential growth of the process. We see at the same time a surge in terms of the environmental, social and governance (ESG) space that was across the regions ... growth in the adoption or evolution in those ESG elements."

In addition, the new report highlights optimism among MSPs in terms of future business growth, Farache said.

TD Synnex Report Shows 'Natural Progression' for MSPs and New Technologies

This latest report shows a "natural progression" of participating in new technologies, Farache said.

"The partners are at the same time saying that they have more interest in continuing to develop more managed services and their own IP, 70% of them are mentioned in that direction," he said. "What the study finds is the natural evolution of how partners are moving from the traditional environment to the new technology areas, how they adopt and maximize their opportunities in those spaces, and how they are shifting their mixture of their portfolio to include more services on IP and specialization in each of these areas."

MSPs are reacting to the demand of the market and the growth areas that are in the market, Farache said.

"But at the same time, it's a reaction to the need for an approach that is more consultative, that is more oriented to a complete solution instead of a product-based approach," he said. "That is why they are moving to practices. They are moving to consultative, they are moving to manage services."

At the same time, vendors are pushing the partners in the direction to help the customer on adoption, Farache said.

"It's transitioning from transaction to life cycle management," he said. "All of those are part of this transformation that are helping set the frame for a different type of approach from the MSPs to the end user."

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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