Tech businesses could leave $400 billion in untapped revenue in the AR/VR market
FREMONT, Calif. & CLEARWATER, Fla.–(BUSINESS WIRE)–TD SYNNEX (NYSE: SNX) has released its inaugural Global Technology Ecosystem Benchmark Report, highlighting critical industry trends and opportunities for 2023 and beyond. The first global report of its kind, the TD SYNNEX Global Technology Ecosystem Benchmark Report follows regional industry benchmark studies in North America, Europe, Asia Pacific and Japan, and Latin America and the Caribbean.
The report reflects TD SYNNEX’s role at the center of a global ecosystem connecting technology producers, resellers, service providers, systems integrators, industry specialists and end-users.
“As a leading IT ecosystem distributor and solutions aggregator, we have an opportunity and responsibility to help our channel partners identify industry trends as they navigate relentless transformation and plan for strategic growth,” said TD SYNNEX Chief Strategy Officer Sergio Farache. “The Global Ecosystem Benchmark Report is an important milestone in defining and understanding what’s happening in this globally connected IT ecosystem.”
Building on the North American, European, Latin American and Caribbean and Asia Pacific and Japan regional benchmark studies, the Global Insights Report focuses on three fundamental factors for technology ecosystem businesses:
- Anticipating and meeting end-user technology expectations.
- Effectively managing technology ecosystem business operations.
- Technology ecosystem engagement, enrichment and enablement.
The survey covered a range of topics from growth strategies and business challenges to customer needs and strategic investments, revealing five critical insights:
Insight 1: Globally, technology resellers’ strategic growth plans prioritize entering new vertical markets. Additionally, increased ecosystem partnerships are likely to be integral in executing on this growth strategy.
Regulated verticals like financial services, government, education, healthcare and ESG are all expected to increase in importance over three years. Gaining the experience in these categories and delivering the technology solutions requires expertise that’s hard to scale, which means partnerships can close functional gaps to deliver desired outcomes.
Insight 2: Resellers are putting their investments in people to drive the outcomes customers want most.
The largest categories of reseller business investments are directly linked to acquiring skills, certification, and expertise. More than three-quarters of resellers globally are prioritizing budgets to increase knowledge in technical and business solutions areas customers frequently request, including Managed Services, Security Networking, Professional Services, Servers + Storage, and Hybrid Cloud, among others.
Insight 3: Resellers are shifting resources to expand their cloud portfolios.
When viewed as a single category, cloud solutions (cloud deployment, cloud integration, multi-cloud management, and others) eclipse all other technology solutions resellers conveyed that they plan to offer in the next 24 months, according to the Global Benchmark Report. Other top responses have a clear tie to cloud priorities (device as a service, digital transformation, IoT, security) making cloud solutions fundamental to global resellers’ portfolio of offering.
Insight 4: Global resellers are consumed by As-a-Service.
The near total adoption of As-a-Service consumption models resellers plan over the next two years is a short leap in logic from reseller’s responsiveness to customers’ technology solutions needs and the intended expansion of cloud offerings. Customers have always indicated they want flexibility when it comes to payment terms. The trend toward OpEx and consumption-based IT means a larger portion of resellers’ business is likely to come from recurring revenue.
Insight 5: ESG (Environmental, Social and Governance) and the AR/VR market are potential missed opportunities for resellers.
In contrast to the emphasis on skills acquisition, portfolio expansion and efforts to enter new vertical markets, sustainability and emerging technology are low on the priority list for solution development and business investment.
In different capacities, ESG and AR/VR solutions are both opportunities for global resellers.
Effective ESG programs allow organizations to respond to partner and customer questions about sustainable practices and diversity, as well as comply with supplier codes of conduct, while some analysts forecast an AR/VR market opportunity of $800 billion by 2024, where 50% of that revenue is associated to technology platforms and hardware.
The full TD SYNNEX Global IT Ecosystem Benchmark Report, including an executive summary, is available for download.
Survey Methodology
In partnership with Canalys, TD SYNNEX surveyed approximately 300 mid-size technology ecosystem partners across North and South America, Europe and Asia Pacific countries. Mid-size technology ecosystem partner is defined as 1,000 seats and below. Fieldwork for the Global Insights Report was conducted between July and October 2022.
About TD SYNNEX
TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We’re an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in Clearwater, Florida, and Fremont, California, TD SYNNEX’s approximately 23,500 co-workers are dedicated to uniting compelling IT products, services and solutions from 1,500+ best-in-class technology vendors. Our edge-to-cloud portfolio is anchored in some of the highest-growth technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility and everything as a service. TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit www.TDSYNNEX.com or follow us on Twitter, LinkedIn, Facebook and Instagram.
Safe Harbor Statement
Statements in this news release that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as statements regarding the launch of our annual corporate citizenship report; our commitment to lower our global carbon footprint, set targets for emissions reductions, and increase sustainability initiatives; our plans to achieve net-zero greenhouse gas emissions and the timing thereof; our deployment of environmental management systems; our plans to increase representation of people who identify as women, including in leadership roles, and the timing thereof; our plans to increase board of director representation of underrepresented groups and the timing thereof; our plans to expand compensation and benefits parity programs; our commitment to increase the diversity of our business partner ecosystem; and our other ESG commitments, involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to be materially different from any future performance that may be suggested in this release. A description of risks and uncertainties relating to TD SYNNEX can be found in its most recent Annual Report on Form 10-K and subsequent filings with the SEC and available at www.sec.gov. The Company assumes no obligation to update any forward-looking statements contained in this release.
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Contacts
Bobby Eagle
Global Corporate Communications
TD SYNNEX
727-538-5864
bobby.eagle@tdsynnex.com
