34 Louella Fernandes 01732 759725 CHANNEL RESEARCH Transforming business models Transforming business models is a key concern. 38 per cent of respondents say changing business models from transactional to consultative is the biggest challenge they face. Channel partners say they want more support from vendors as they seek to diversify. There is a perception among the channel that OEMs are still wedded to device sales, despite the business model changes undertaken by many vendors in recent years. Business process automation, cloud print services and print security solutions are viewed as the most important services to offer in the coming year. Louella Fernandes, CEO, Quocirca, said: “After a period of major upheaval, there are signs that the channel is entering a more stable and confident phase where it can focus on building a foundation for long-term success. That foundation must include a shift to consultancy-based services that drive ongoing revenue and deliver sustained customer value. However, achieving this transition remains a key concern.” AI adoption is rapid The study also found that the industry is rapidly incorporating AI into its internal business processes. Almost half of the companies polled say it is already critically, or very, important to their business. 46 per cent say AI already plays a critical or very important role in their business. The top use cases for AI in the channel are analysing customer data, creating marketing materials, and predicting problems. Market movements and consolidation Almost one-third of respondents (31 per cent) said that mergers, acquisitions, or divestments were on the horizon in the next three years. Quocirca suggests that the further 29 per cent who preferred not to answer this question implies that we will see increasing M&A activity. “Many vendors and channel partners need to access new and diverse technologies, skills, and specialisms to capitalise on opportunities in rapidly expanding areas like AI, cybersecurity and cloud computing,” Louella said. “While the largest vendors have the resources to develop propositions in-house, strategic partnerships or acquisitions are the logical route to take for most in the channel. “As the channel continues to navigate market transformation and build consultative, collaborative relationships with customers, vendor support will be critical. This is especially true where sustainability is concerned. Partners seek more information about device lifecycle impacts, help developing energy-saving strategies for customers, and sustainability-focused deal support,” she concluded. www.quocirca.com The majority (65 per cent) of channel companies in the global print industry expect revenues to rise in the coming year, with an average predicted increase of seven per cent, according to Quocirca’s annual State of the Channel study. While 70 per cent expect print volumes to continue falling – by an average of 6.25 per cent this year – the channel sees opportunities in strong customer interest across a range of areas from cloud solutions and services to automation and sustainability. Diversification is a top challenge Diversifying into new business areas is identified as a top challenge by almost half of respondents, but there is evidence that the channel is successfully making the shift to a broader IT services market, with respondents reporting that an average of 19 per cent of channel revenues now come from IT services. A European ISV who took part in the survey noted: “The [majority] of small/medium dealers have yet to find a sustainable alternative to click revenue, and bravery will be required from many who have not yet taken diversification seriously.” The sustainability data gap Channel businesses want vendors’ help to close the sustainability data gap. 66 per cent say customers show strong or moderate interest in sustainable products and services, and almost half say their sustainability initiatives are driven by the need to meet customer expectations. However, 43 per cent say they need more information from vendors on product lifecycle impact and 33 per cent want advice on ways to help customers save energy across their print fleet. Growth opportunities, challenges and concerns Quocirca’s State of the Channel Survey 2024 reveals that the print channel shows cautious optimism amid its drive to diversify for long-term success Copyright Quocirca © 2019 The State of the Channel, 2024 June 2024 The State of the Channel, 2024 How print channel partners are navigating market transformation After a period of maajor upheaval, there are signs that the channel is entering a more stable and confident phase where it can focus on building a foundation for long-term success
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