What to Expect in the IT Channel of the Future

The global IT industry experienced a phenomenal 2015, with IDC’s end-of-year worldwide projection topping $3.7 trillion, with the U.S. accounting for more than $1 trillion. Want even better news? The latest CompTIA IT Industry Outlook for 2016 expects those strong global growth trends to continue, with another 5 percent boost this year, pushing the global market to almost $3.9 trillion. 

With total IT spending at an all-time high and business confidence gaining momentum, industry projections look quite positive. And there are plenty of reasons to be optimistic on the channel side as well — at least for those making solid business decisions and the right investments.   

In 2016, the United States will experience a number of significant changes, including the selection of our next president. We also expect a number of transitions in the channel. While the future looks bright for those positioning themselves as business consultants and partners with regard to their clients, there are challenges ahead. Providers have to be able to articulate the business relevance of technology and be prepared to offer specific, measurable outcomes and gains. Partners need to know the ins and outs of their clients’ businesses today and be capable of analyzing overall performance. That’s a great place to start.

Providers should also have relationships with line-of-business managers and work in concert with IT departments, when there is one, to better understand these organizations’ needs and goals. A more proactive vs. reactive or responsive relationship is the goal, with partners recommending solutions their clients will need tomorrow to remain competitive.

Today’s channel professionals should be focused on improving their clients’ processes and helping them develop business-critical policies rather than simply recommending products or pieces of their IT strategy. The game has certainly changed.

The challenge is that most partners aren’t comfortable taking on a “business consulting” role. Some have increased their personal confidence levels with training and support, whether from CompTIA or programs developed by their vendor and distribution partners.

Others hired skilled professionals to add specializations or to improve their overall expertise. With technology becoming so crucial to business, providers are increasingly being asked to investigate new products and technologies for their clients, looking for the solutions that could make a demonstrative difference in future outcomes. Big data, mobility and advanced IT security services all offer a number of benefits for end users, and a solid business case for providers.

Now, you have to ask yourself: Is my company ready, willing and able to take on these new responsibilities? Can we offer customers that high-level service and support?

Case in point: IT security has become job No. 1 for VARs and MSPs today. Beyond implementing firewalls and antivirus protection, partners who offer insight and training to minimize client issues are winning new business. By leveraging the Security Assessment Wizard and CyberSecure with their customers, they are positioning their business as their clients’ first line of defense.

I am extremely optimistic about the future of the channel. Innovation is everywhere, and businesses need trusted advisers to guide, design and execute. As savvy as end users are today, they need help wading through the apps, infrastructure changes and integrations, not to mention training. Technology advances and complexity are good for the channel, but providers have to stay current and evolve with market needs. 

Break fix and product reselling is not dead. It’s still solid option for some providers, though they have to be on the watch for new competitors and continued margin decline to keep that business profitable. In the end, VARs and MSPs simply have to be relevant to their customers and prospects.  As technology becomes more relevant to business, in a fast paced environment, the partner will need to become more relevant as well. 

For those who understand their clients’ business needs, and deliver the right solutions and support, the future is much brighter. Are you meeting that challenge?

I encourage you to engage with CompTIA, its members and our industry partners to ensure 2016 is a highly successful year. Based on all the research and insight, the channel’s future looks extremely bright. With so many resourceful, innovative and progressive people working so hard to advance our industry, there’s little doubt it will be a great year.   

Nancy Hammervik is Senior Vice President of Industry Relations at CompTIA.