Capturing the $3.6 trillion partner opportunity

The channel continues to dominate the near $5 trillion global tech market. Channel partners remain the backbone of the tech industry, accounting for 73.2% of the total IT market in 2024.

This newsletter highlights Canalys research into the best performing categories, the world's most channel-centric vendors as well as the best way to capture this opportunity: participating at the Canalys Forums 2024.

IT spending to accelerate 6% in 2024 and partner-delivered IT to account for 73%

After a period of deceleration, Canalys’ February IT Opportunity update predicts a 6.2% growth in worldwide IT spending in 2024, reaching US$4.94 trillion.

This is despite the heightened risk of major disruption from climate change-related extreme weather events, the escalation of conflicts and intensifying geopolitics, energy security, cyber-attacks, and political instability stemming from more than 50 elections covering 45% of the world’s population.

Channel partners remain the backbone of the tech industry, accounting for 73.2% of the total IT market in 2024. Across hardware, software and services, Canalys expects them to continue to play a crucial role in scaling vendors' reach and delivering complex technology solutions to customers by providing advisory, designing, building, procurement, adoption and management capabilities.

Check out this excellent report from Canalys Chief Analyst Matthew Ball : https://www.canalys.com/insights/worldwide-it-spend-2024

Canalys Forums to unite the global partner ecosystem in Berlin, Miami and Bali

Canalys has announced the dates and locations for its 2024 global series of channel forums, including the first-ever events in Berlin and Miami and a return to Bali after a decade.

More than 3,000 senior leaders from the partner ecosystem will unite at the Canalys Forums EMEA, North America and APAC in October and December 2024.

This year’s three events come under the theme of “Unite” as Canalys once again brings together the world’s most senior gathering of vendors, distributors, resellers, systems integrators and managed service providers.

Read more and sign up today! https://www.canalys.com/newsroom/canalys-forums-2024-announcement

Nine vendors have been crowned EMEA Champions in the Canalys EMEA Titans Channel Leadership Matrix

Nine vendors have been recognized as Champions in the 2024 EMEA Titans Channel Leadership Matrix: AWS, Cisco, Dell, Juniper Networks, Lenovo, Nutanix, Palo Alto Networks, Schneider Electric and Trend Micro.

This is an impressive achievement, with Champions showing high levels of excellence in channel management compared with their industry peers while also improving their performance on the previous year and investing for the future.

These vendors cover a wide range of technology sectors, spanning hardware, software, cloud and cybersecurity. But Champions share some common characteristics, including a strategic commitment to driving growth through and with partners, investments in partner profitability and ease of doing business, a focus on program innovation and high levels of partner satisfaction.

Read the blog from Alastair Edwards : https://www.canalys.com/insights/nine-vendors-have-been-crowned-emea-champions-in-the-canalys-leadership-matrix

Canalys recognizes Champions in the 2024 Asia Pacific Titans Channel Leadership Matrix

Eight vendors achieved Champion status in the 2024 Canalys APAC Titans Channel Leadership Matrix: AWS, Check Point, Cisco, HP, Lenovo, NetApp, Palo Alto Networks and Trend Micro.

Canalys recently published the latest edition of the APAC Titans Channel Leadership Matrix, adding to its series of Leadership Matrix reports . This matrix’s objective is to assess which vendors are playing an integral role in driving the success of the Asia Pacific partner ecosystem across their respective channel and technology areas.

Among the Champions in the APAC Titans Channel Leadership Matrix, two vendors, Palo Alto Networks and Trend Micro, retained their Champion status from the year before – an impressive accomplishment, requiring them to deliver improvements to already strong performances.

Read the blog from Sheena Wee : https://www.canalys.com/insights/canalys-recognizes-champions-in-the-2024-asia-pacific-titans-channel-leadership-matrix

Canalys unveils first North American Titans Channel Leadership Matrix in 2024

Eight vendors have achieved Champion status in the inaugural 2024 Canalys North American (NA) Titans Channel Leadership Matrix: AWS, Cisco, Dell, HP, HPE, Lenovo, Palo Alto Networks and Trend Micro.

Canalys has published its first NA Titans Channel Leadership Matrix 2024, adding to its series of Leadership Matrix reports . This matrix’s objective is to assess which vendors are playing an integral role in driving the success of the North American partner ecosystem across their respective channel and technology areas.

Read the blog from Rodney Hur : https://www.canalys.com/insights/canalys-unveils-first-north-american-titans-channel-leadership-matrix-in-2024

US federal channel opportunity to reach record-high US$60.1 billion in 2024

The federal channel has been growing rapidly over the last two years, driven by increased demand for services and a federal push for cloud adoption and cybersecurity improvements, writes Noah Dantes .

In 2023, the Canalys federal top 50 generated US$55.4 billion in IT contracts out of the estimated US$88.3 billion that went to contractors out of the federal civilian and defense IT budgets. Some 35 of the top 50 federal channel companies grew their IT contracts from 2022 to 2023, with 21 of these partners growing their contract obligations by more than 10%. From 2018 to 2023, channel contracts increased by an average of US$4.0 billion per year and total IT contracts (including vendors’) increased by an average of US$3.6 billion per year. The channel’s five-year average growth outpaces the federal market’s five-year average growth. This data shows that not only is the federal government’s dependence on IT contractors growing over time, so is its dependence on partners.

Read the report: https://www.canalys.com/insights/us-federal-channel-opportunity-to-reach-record-high-in-2024

Worldwide cloud service spending to grow by 20% in 2024?

Worldwide cloud infrastructure services expenditure grew 19% year on year in Q4 2023 to reach US$78.1 billion, an increase of US$12.3 billion.

For full-year 2023, total cloud infrastructure services spending grew 18% to US$290.4 billion, up from US$247.1 billion in 2022. The influence of enterprise IT optimization on the cloud services market is falling, with more customers expanding their commitments with hyperscalers in anticipation of increased consumption requirements.

Cloud migration efforts are picking up again, alongside a surge in new demand, particularly in the widespread adoption of AI applications. Hyperscalers are steadily ramping up investments in generative AI, expecting that harnessing its capabilities will catalyze new opportunities in cloud consumption. In 2024, Canalys expects global cloud infrastructure services spending to increase by 20%, compared with 18% in 2023.??

Check out the full data: https://www.canalys.com/newsroom/worldwide-cloud-q4-2023