The channel has enjoyed a few strong years and despite the challenges of 2022, the security, cloud and infrastructure are witnessing considerable investments. According to research firm Gartner, IT spending is projected to total $4.4 trillion, an increase of 4% from 2021.
“2022 was an all-round success for Lenovo as a group. ISG saw a record FYQ2 revenue of US$2.6 billion, up 33% year-on-year, with operating profit reaching an all-time high of US$36 million, marking the 4th consecutive quarter of profitability,” said Alaa Bawab, General Manager, Lenovo Infrastructure Solutions, MEA. “There was also a huge growth in the market, with the Cloud Service Provider and Enterprise/SMB segments both outgrowing the market forecast. Edge computing and storage solutions also saw huge success, quadrupling and doubling revenues respectively. And EMEA took the lead position in Entry Storage for the first time.”
According to the Verizon Network Report, April 22, the overall data volume across its networks increased by 19% compared to pre-COVID levels.
2022 also proved to be a banner year for New Trend Computer Networks a distributor for networking products from Cisco, Dlink, Linksys, SonicWALL, Engenius etc. Ashok Kumar, CEO, New Trend Computer Networks and Vice President, Dubai Computer Group (DCG) says, “2022 has been great with post Covid recoveries and even during the period of pandemic the demand for networking was all time high.”
Ashok Kumar says, “For us 2022 was a momentous year in which we grew multifold in security space specially cloud security.”
However, 2022 did bring a set of challenges to others including AVITA Technologies. Covid -19 is continuing to affect the value chain. Dr. Alex Chung, the CEO and Founder of AVITA Technologies International, says, “In the year 2022, as other corporations, the biggest risk and threat we faced is pandemic-related. AVITA has to compete in a relentlessly volatile environment filled with uncertainties and risks. Economic downturn as Covid -19 cases kept rising in 2022, making it difficult for many businesses and companies to stay afloat. One of the biggest risks for businesses in 2022 is the shortage from supply chains.”
However, despite the supply chain bottlenecks, there is always light at the end of the tunnel. “But of course, challenges will always be there. Where there are challenges to be overcome, there is opportunity. By the end of the year, AVITA and Jasmy have a close collaboration to provide Blockchain technology and develop Secure PC in 2023” said Dr. Alex Chung.
2022 served up a mixed bag for some companies such as Trigon for which the year marks the silver jubilee. Kamran Khayal, General Manager, Trigon LLC, said, “On the one hand, we are ending this year with good revenue. We bagged big new projects in B2B and B2C space for AV solutions. We signed up new partnerships to expand our solution portfolio,” said Kamran. “On the other hand, we had a tough time, an inexpensive chip that costs hardly a few dollars has led to billions of dollars’ worth of losses across the globe. Due to the chip supply shortage, there was a delay in the production of laptops, computers, monitors which affected our distribution business but still we managed to deliver the products to the customers on time.”
“2022 was a mixed year where we were just coming out of COVID Pandemic,” said Shailendra Rughwani, Chairman, Experts Computer Group. He says, “Overall business was better than 2021 for our group.”
With the passage of time the role of channel partners is all set to strengthen and 2023 looks hopeful for those operating in the channel.
During all these years the channel partners have the opportunity to play greater role in the IT ecosystem. “We treat our channel partners as an extension of our own internal teams. They play a very important role in our success in the regions we operate and are they key growth drivers in all our markets,” says Alaa Bawab of Lenovo.
Dr. Alex Chung of AVITA said “Vital sales and distribution channel is going to resume its important role for the engagement with customers. Even though the pandemic has changed consumer behavior shift to online channels, offline distribution channels still keep functioning and let customer to touch and try on the physical product. In 2023, our company will still rely on strong distributor and retailer to enhance our AVITA Sales. Also, it is expected to have a growth and recovery on the sales in the worldwide market.
Trigon which has a vast channel partner ecosystem intends to equip its channel partners with sales, marketing, and service support in 2023. The company will facilitate them with more training and certifications which will help them to provide a compelling value proposition to the customers. “Furthermore, we will focus on customer-focused activities such as presales, and demo programs which will enable our partners to offer comprehensive solutions to the end users to achieve customer delight. In addition, we will help them in empowering the operations and supply chain to provide in-house repairs and 24X7 customer support,” says Kamran Khayal of Trigon.
“Experts Computer has always been channel centric and always strives to get the best products and support the channel with product availability and pricing. We will continue to support the channel in similar ways. We have added few brands in our portfolio of distribution and are looking forward to supporting the channel with best support,” says Shailendra Rughwani of Experts Computer Group.
Stating that the fact that New Trend Computers is completing 22 years in the channel accords them greater responsibility Ashok Kumar, CEO, New Trend Computer Networks and Vice President, Dubai Computer Group (DCG) says, “We transact with almost 150+ Partners and they rely entirely on us.” Trust is a key factor we have created with our partners and it is characterized by partner enablement. “We do a lot of enablement sessions in association with the leading vendors where we invite our partners.” The company also arranges sports activities so that it can be informal for the stakeholders to know more about the community.
“For 2023 New Trend Computers will be rolling out an exclusive loyalty program not just for the value of business but also reward the partners with the learning or certifications. This will give them great motivation and as said earlier we have a great responsibility to make sure our Channel is our Strength,” said Ashok Kumar.
As AVITA is hopeful of the recovery of market situation in 2023 the company will take resort to vital sales and distribution channels in order to enhance customer engagement in cooperation with the channel partners.
IT spending is forecast to grow in 2023. Channel partners have the opportunity to play an even greater role in the IT ecosystem in 2023.
Shailendra Rughwani, Chairman, Experts Computer Group says, “We expect demand for IT Products to go up in the coming year, compared to 2022. The Channel needs to be prepared for the price fluctuations, currency fluctuations and workout their strategy accordingly. With the new Covid wave expected there could be some shortage of products and availability could be an issue. Channel needs to keep a tab on this situation and plan accordingly in order not to get in to the 2020 situation where we saw demand going up and shortages on product availability.
With the passage of time the role of channel partners is all set to strengthen and 2023 looks hopeful for those operating in the channel.
