TD SYNNEX Report: Channel Partners Seek Balance Between Accelerating AI Innovation and Core Technologies

Rhea-AI Summary

TD SYNNEX (NYSE: SNX) has released its Third Annual Direction of Technology Report, based on a survey of over 1,000 technology partners from 60+ countries. The report highlights five key global trends shaping the IT market in 2024:

1. Ingenuity and Flexibility: Focus on certifications and specialization, especially in cybersecurity, data privacy, and AI.
2. Innovation with Strong Foundation: 44% plan to offer AI solutions within two years.
3. Essential Solutions: Security identified as top profit generator.
4. Collaboration and Consolidation: 73.2% of IT spend driven by partners in 2024.
5. Regulation and Risk Mitigation: ESG standards recognized as a major business challenge.

The report emphasizes the balance between AI innovation and core technologies, with security remaining a top priority for partners.

Positive

• 44% of partners plan to offer AI-driven solutions within the next two years
• Security identified as the top profit generator in the ecosystem
• 73.2% of IT spend expected to be driven by partners in 2024
• Strong focus on certifications and specialization in cybersecurity, data privacy, and AI

Negative

• Rising competition and technological transformation challenging the channel
• ESG standards identified as one of the top two challenges for businesses in the next two years

Insights

Market Research Analyst

The TD SYNNEX Direction of Technology Report offers valuable insights into the IT channel's priorities and trends for 2024. Key takeaways include:

• Strong focus on AI adoption, with 44% of partners planning to offer AI solutions within two years
• Security remains the top offering and profit generator
• Emphasis on balancing innovation with core technologies and risk mitigation
• Growing importance of ESG standards in the IT ecosystem
• 73.2% of IT spend is expected to be driven by partners in 2024

While this report doesn't directly impact TD SYNNEX's financials, it positions the company as a thought leader in the IT distribution space. The insights can help TD SYNNEX align its strategy with partner needs, potentially leading to improved market positioning and long-term growth opportunities. However, the immediate impact on stock performance is likely

Third Annual Direction of Technology Report highlights key trends shaping the IT landscape, including AI innovation, security advancements, and the growing importance of ESG.

FREMONT, Calif. & CLEARWATER, Fla.--(BUSINESS WIRE)-- TD SYNNEX (NYSE: SNX) today published its Third Annual Direction of Technology Report, which reveals that as the technology landscape evolves, businesses plan to invest in strong technology infrastructure, leverage high-growth technologies and work in close conjunction with expert, trusted partners.

The report is based on a survey of more than 1,000 technology resellers, systems integrators, service providers and managed service providers from over 60 countries globally. These respondents shared they are accelerating investments in AI and Generative AI (Gen AI) technologies, with nearly half saying they plan to offer AI-driven solutions within the next two years.

The report also emphasizes the critical role of security, as it remains the top offering for partners, underscoring the need to balance innovation with risk mitigation. But when it comes to doing business, resellers prioritize affordability and flexibility, responding to the evolving needs of their customer base.

“For the third straight year, the Direction of Technology report provides a clear picture both of the current state of the technology market and areas where businesses say they plan to invest the most,” said Patrick Zammit, CEO of TD SYNNEX. “This year, we’re seeing much more detail on how partners are embracing the power of AI and cloud technologies while making technology more adaptable to the needs of their customers. At the same time, they are balancing the need for robust security and regulatory compliance across all industries.”

The report highlights five key global trends influencing the IT market in 2024:

• Leading with Ingenuity and Flexibility: Tech leaders know certifications and specialization are keys to success in the dynamic tech marketplace, especially in cybersecurity (58%), data privacy (58%) and artificial intelligence (AI) (45%). At the same time, they’re optimizing flexible spending solutions to meet the needs of their customer base in today’s shifting economic climate.
• Driving Innovation with a Strong Foundation: With AI changing the way we do business, channel partners are under mounting pressure to make the case for high-growth technologies, including nearly half (44%) who plan to offer AI in the next two years. To power the future, the ecosystem is investing in core technologies like security and hardware, ensuring that the new goes hand-in-hand with the foundational.
• Leveraging Essential Solutions for a Complex World: This year, products at the intersection of security and innovation are driving the financial success of the channel and the broader marketplace. Respondents identified security as the top profit generator in the ecosystem, while networking, endpoint devices, AI and hyperscale infrastructure round out their top revenue drivers.
• Prioritizing Collaboration, Coordination and Consolidation: The technology ecosystem thrives when leaders embrace the interconnection of the channel. With nearly three-quarters of information technology (IT) spend (73.2%) driven by partners in 2024, it’s clear that collaboration will be crucial as the channel contends with rising competition and technological transformation.
• Meeting Regulation and Mitigating Risk: Across all industries, global topics like climate change, human rights and strong corporate governance are changing the regulatory and risk landscape. Respondents are keenly aware of this, identifying environmental, social and governance (ESG) standards as one of the top two challenges for their business in the next two years. To stay on top of this shifting landscape, partners plan to offer technology solutions that help customers move toward a more sustainable and equitable society.

“By focusing on these key trends, companies will not only be ready to adapt, but to thrive,” said Jill Kermes, Corporate Vice President, Global Corporate Communications and Citizenship. “Looking ahead, technology leaders must stay focused on how to best optimize and grow their business, as well as how they can deliver solutions that best support the people who will use them.”

In addition to the global Direction of Technology report, TD SYNNEX will publish supplemental reports for each of its global regions: North America, Europe, Latin America and Caribbean, and Asia Pacific and Japan, later this year.

To download the new Direction of Technology report, visit https://content.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 Clearwater, Florida, and Fremont, California, TD SYNNEX’s 23,000 co-workers are dedicated to uniting compelling IT products, services and solutions from 2,500+ 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 2024 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/20241009629180/en/

Emily Moseley

Global Corporate Communications

727-538-5864

Emily.moseley@tdsynnex.com

Source: TD SYNNEX

FAQ

What are the key trends identified in TD SYNNEX's (SNX) Third Annual Direction of Technology Report?

The report identifies five key trends: 1) Leading with ingenuity and flexibility, 2) Driving innovation with a strong foundation, 3) Leveraging essential solutions for a complex world, 4) Prioritizing collaboration, coordination, and consolidation, and 5) Meeting regulation and mitigating risk.

How many partners plan to offer AI-driven solutions according to TD SYNNEX's (SNX) report?

According to the report, nearly half (44%) of the surveyed partners plan to offer AI-driven solutions within the next two years.

What is identified as the top profit generator in TD SYNNEX's (SNX) ecosystem?

The report identifies security as the top profit generator in the ecosystem, followed by networking, endpoint devices, AI, and hyperscale infrastructure as top revenue drivers.

What percentage of IT spend is expected to be driven by partners in 2024, according to TD SYNNEX's (SNX) report?

The report states that 73.2% of information technology (IT) spend is expected to be driven by partners in 2024.