By Rakesh Parbhoo, Global CTO and Executive Vice President Middle East and Africa, Westcon-Comstor
Data has never been more important and is now arguably the most valuable currency in the business of technology.
As a way of refining and optimising business operations, spotting emerging trends and identifying new revenue opportunities, effective analysis of data is a powerful weapon in any firm’s armoury.
Yet many companies, from enterprises to SMBs, are struggling to fully utilise the wealth of data they have at their fingertips or extract the full value from it. Data fatigue is common and, amid the deluge of data from multiple sources, it can be hard to see the wood for the trees.
Data dilemma
This is certainly true in the IT channel, where data paradoxically represents both a major challenge and a huge opportunity for many value-added resellers, managed service providers and systems integrators.
Central to this opportunity is the chance to put data at the heart of a transformation strategy that involves shifting from hardware sales to a recurring revenue model based on software, services and subscriptions.
In this everything-as-a-service (XaaS) world, where success rests on a lifecycle selling strategy spanning everything from sales and adoption through to renewals, data becomes absolutely critical.
Bridging the gap
Making this transition is easier said than done, of course, and many partners are experiencing practical, operational and strategic challenges in their efforts to deploy data effectively.
As JP Smith, Vice President of Sales for East and West Africa at Kenya’s Dimension Data (now rebranded to NTT Data), told us during an interview for Westcon-Comstor’s new research report: “Data is crucial for making calculated business decisions – only if you know how to use it.”
The Bridging the Gap: Power Up Your Data for Channel Partner Transformation lifts the lid on the channel’s complex relationship with data, both across the MEA region and further afield.
Practical challenges
By surveying more than 500 decision makers at channel partners in nine countries including Kenya, Nigeria and South Africa, and complementing these quantitative findings with in-depth interviews with a select panel of partners, we were able to paint a compelling picture.
First, the bad news.
Access to the right data was found to be the single biggest obstacle facing partners in MEA and globally in their pursuit of recurring revenue models, with 54% of Africa-based respondents highlighting this as an issue. The Kenya figure (65%) was higher than in any other market globally.
Handling of multiple diverse data types emerged as channel companies’ biggest practical challenge in relation to data, and many admitted there is a need to bolster their internal capabilities to address gaps in how they utilise and apply data for lifecycle selling.
Across MEA and globally, partners want to become more sophisticated in their use of data to both maximise cross-sell and upsell opportunities and drive adoption of new products and solutions, with many acknowledging that this is another area in which gaps exist between their current capabilities and their aspirations.
Doubling down on data
On a more positive note, partners seem determined to double down on data in 2024 and put their money where their mouth is, with almost all MEA respondents (99%) identifying data capabilities as a key investment priority for the coming year (global average: 95%).
The majority of partners in Kenya, South Africa and Nigeria (58%, 71% and 73% respectively) reported that they already have an in-house data and analytics function, giving them a solid foundation on which to build.
Most tellingly (and from my perspective, most pleasingly), all MEA respondents (100% versus a global average of 97%) told us that data is important in their journey to an XaaS future characterised by recurring revenue models.
This goes to show that, despite the challenges, there is an unshakeable belief in the power of data and a determination to realise its full potential.
Distribution demand
Looking at the role that technology distributors like Westcon-Comstor can play in helping partners to use data more effectively to accelerate their growth and transformation, 66% of MEA respondents said the provision of meaningful customer and market insights is the future of distribution. Demand is strongest for data that can identify and enable market growth opportunities.
As Nicole Oliveira of South Africa’s Altron Digital Business explained during one of our interviews: “Distribution can add big value through data. Not just data on existing install bases and what was previously purchased, but also looking at white space analysis and new opportunities.”
It’s against this backdrop that we recently launched Partner Insights, a new tool that allows partners to monitor key performance metrics and embed a data-driven approach to performance analysis.
Data-driven approach
Our research clearly shows that many partners are grappling with practical challenges around access to data and data utilisation.
Despite this, there is a clear sense among partners that they want to enhance their data capabilities and embed a truly data-driven approach, recognising that this is key to transforming their business and unlocking growth opportunities.
I firmly believe that distributors like Westcon-Comstor have a duty to provide partners with the data and analytics they need to seize these opportunities and accelerate their journey to a subscription, software and services-based future. By providing tools such as Partner Insights and putting data at the heart of our own strategy and value-add offer to partners, we aim to do precisely that.
