The Challenges Of Finding A Successor In IT Channel Biz
Mumbai: The first generation channel partners who laid the foundation of the channel business, are now at a stage where they are thinking to take a retirement from their business and give the reigns in the hands of their next generations. However, young people, mostly the children of entrepreneurs are aspiring to create their own identity instead of entering into the family owned legacy hardware business. Hence, it is a big challenge for the channel community to find its successor in the next decade.
The recent report by industry body CompTIA highlights the the graying of the channel and a critical need to attract millennials and next-generation entrepreneurs. According to the study, An estimated 40 percent of the channel is expected to retire or leave their businesses within the next decade. The report states that although young people are active users of technology, they are not keen to get into the hardware business, instead they intend to explore themselves into startup play.
The CompTIA IT Industry Outlook 2017 report touches upon the various critical aspects of the changing dynamics of channel business. The report also cautions that the all new brigade of solution providers continue to be the potential threat to channel partners.
“The lineup of sources for technology solutions is expanding as non-traditional entities get into the business. New channel players, such as digital agencies, marketing firms and accountants selling and recommending IT solutions continue to pose a challenge to traditional channel firms,” the report states.
The report says that a combination of new channel partner types and the move away from traditional hardware solutions to SaaS, IaaS, business models and services, are compelling vendors to rethink partner programs. “What was once valued – sales spiffs, discounts and rebates – is no longer as relevant in today’s services-based market,” it says.
The report also highlights the partner opportunities in the cloud management space. According to CompTIA the number of cloud companies and services continues to proliferate, giving customers more options and creating more opportunities for channel partners. The report states that new elements built from a cloud mindset will play larger roles, challenging users to integrate the pieces into a comprehensive digital strategy.
Apart from cloud, security and data protection are the other two areas partners will see the growth prospects. Data specialists will move from backstage to center stage to harness the power of organizational data. Similarly, The Internet of Things will be a major disruption as more physical objects gain intelligence and connectivity, the report states.