Security and Networking: Technologies that Contribute the Most to Partner Revenue in Latin America and the Caribbean

Rhea-AI Summary

TD SYNNEX (NYSE: SNX) releases findings from 2023 Direction of Technology Report, revealing shifts in partner business models, with a focus on services and security. Hybrid cloud, investment challenges, and ESG priorities also highlighted in the study.

Positive

• Partners in Latin America are prioritizing AI and ML offerings, cybersecurity, networking, infrastructure, and hybrid cloud. 84% of partners will increase professional services sales in the next three years. Security is the top revenue driver for 65% of respondents, followed by networking and servers/storage. Hybrid cloud and server/storage infrastructure are key investment areas in the short term. Over 70% of partners expect revenue growth in 2023, with 50% expecting growth of more than 10%. Investment priorities include technology training/certification, demand generation/digital marketing, and cybersecurity standards. 80% of business planning was performed in-house in 2023. ESG is not a priority in Latin America, with only 8% of partners currently offering ESG reporting and accreditation solutions.

Negative

• Challenges such as increasing competition, margin pressure, talent recruitment and retention, and business investment priorities pose significant obstacles for partners in Latin America.

Findings from TD SYNNEX’s 2023 Direction of Technology Report show the direction that channel partners’ business will take based on their current conditions and the most interesting trends for business clients.

MEXICO CITY--(BUSINESS WIRE)-- For second consecutive year, TD SYNNEX (NYSE: SNX) conducted the 2023 Direction of Technology annual study, showing significant numbers for Latin America. The purpose of this study is to capture the opinions and expectations of channel partners around their business models, business performance and strategy and understand the landscape of technology adoption by companies that purchase the products and services commercialized by partners.

The conclusions of the regional report are based on the segmented results of a survey conducted (in collaboration with Canalys) among 550 B2B channel partners from Europe, APAC, North America, and Latin America and the Caribbean (LAC). The latter region was the second in terms of the number of respondents, with 22% of the total, only after Europe.

“The distinctive conditions in Latin America are reflected in the data from this year’s study. The findings are revealing in multiple ways: the partners across the region are meaningfully preparing for a shifting reality by adjusting their priorities and business offerings —just as channels do in other parts of the world— but the guidelines are different and respond to their situation and the parameters observed in their ecosystem,” said Otavio Lazarini Barbosa, senior vice president, TD SYNNEX, LAC. “In LAC, areas which are being increasingly prioritized by most channel partners in the more than 60 participating countries, such as AI and ML offerings, or the importance of focusing on ESG initiatives, are overshadowed by other areas that respondents in the region consider key, including cybersecurity, networking, infrastructure, and hybrid cloud.”

The most relevant findings from the study are divided into eight areas, including:

Partner business models are undergoing a shift towards services

• While the sale of hardware remains important, share is shifting to consumption and product lifecycle models.
• 84% of partners in the region will increase the sale of professional services in the next three years, and 82% will increase the sale of managed services.

Security and networking are critical for the majority of partners in LAC

• Similar to 2022, security is considered the No. 1 revenue driver in the last 12 months by 65% of respondents.
• In terms of this year’s key revenue drivers, respondents cited security as the top revenue driver (73%), followed by networking (60%), and servers and storage (53%). These findings reflect the role the channel plays in delivering security: over 90% of cybersecurity is partner-led.

Hybrid cloud will be a key investment area in the short term

• For the next 24 months, while security (61%) and networking (45%) rank first and second in the Top 8 technologies for clients, hybrid cloud and server/storage infrastructure rank third (40%), followed by hyperscale infrastructure (38%), automation (35%), AI/ML (27%), and data analytics (25%).
• Four of 10 partners recognize that hybrid cloud is a key area to invest in within two years. In fact, 29% of partners regard hybrid cloud as a hiring priority over AI investment.

Many challenges to face

• Three quarters of business partners stated that increasing competition and margin pressure are key challenges currently.
• Nearly 7 of 10 cited talent recruitment and retention as a key challenge, and for 45% this will continue to be a challenge within two years.

Growth expectations reveal a complicated situation

• In the last 12 months, channel partner revenue expectations in Latin America have dropped slightly. However, over 70% of partners still expect to see some revenue growth in 2023.
• 50% are expecting growth of more than 10%, surpassing the rest of the regions by at least 13 percentage points.
• The proportion of partners expecting a revenue decline has increased, but this is only 14% of respondents.

Business investment within the next 12 years will focus on knowledge

• Investment priorities for respondents include technology training/certification (77%), demand generation/digital marketing (74%), and cybersecurity standards (66%).
• These are followed by business planning, talent acquisition/management, product lifecycle management, ESG solutions, and e-commerce.

Business planning increasingly performed in-house

• In 2023, 80% of business planning was performed in-house.
• In addition, LAC partners are shifting from an outsourcing model towards a hybrid approach. This year, 29% of managed IT services will be hybrid, a year-on-year increase of 26%.

ESG is still not a priority in Latin America

• Only 8% of partners in the region currently offer ESG reporting and accreditation solutions, compared to 33% in North America and 32% in Europe.
• Only 16% plan to offer these solutions in the next two years.

“The Direction of Technology Study is designed to help companies better understand and capitalize on the latest trends and demands of the technology ecosystem. We are excited to share the findings of the Latin America and the Caribbean supplement, which will enable our partners to obtain conclusions and guidelines tailored to the region where they do business, leading to better decision-making,” said Marcos Murata, vice president, Vendor Management, Pre-sales Engineering and Marketing, TD SYNNEX LAC. “We are pleased to see our partners’ great ability to adapt and respond going forward.”

This year, the survey was conducted from May to July 2023 among 550 channel partners, including 119 respondents in Latin America —spanning resellers, system integrators, service providers, MSPs, and distributors. To download the full Latin American supplement of the 2023 Direction of Technology Study, visit: www.tdsynnex.com/dot.

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 Fremont, California, and Clearwater, Florida, TD SYNNEX’s 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, AI, 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 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 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. The Company assumes no obligation to update any forward-looking statements contained in this release.

Copyright 2023 TD SYNNEX Corporation. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks of TD SYNNEX Corporation. Other names and trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231108942057/en/

Karina Seir

Communications Manager, LAC, TD SYNNEX

Karina.Seir@tdsynnex.com

OLIVIA CASTAÑON

VICEPRESIDENT, PORTAFOLIO LEADER TECHNOLOGY

Porter Novelli, México

Olivia.Castanon@porternovelli.mx

55 51060220

Source: TD SYNNEX

FAQ

What are the key findings of the 2023 Direction of Technology Report for TD SYNNEX (NYSE: SNX)?

The report reveals shifts in partner business models towards services, with a focus on security, hybrid cloud, investment challenges, and ESG priorities.

What are the top revenue drivers for partners in Latin America according to the report?

Security is the top revenue driver for 65% of respondents, followed by networking and servers/storage.

What are the investment priorities for partners in Latin America based on the report?

Investment priorities include technology training/certification, demand generation/digital marketing, and cybersecurity standards.

What are the key challenges faced by partners in Latin America as per the report?

Challenges such as increasing competition, margin pressure, talent recruitment and retention, and business investment priorities pose significant obstacles for partners in Latin America.