Authored by: Jan Cuypers, Channel Sales and Alliances Director at 3stepIT and BNP Paribas 3 Step IT
In today’s fast-evolving business environment, the market offers promising opportunities for channel players. However, they must be agile and proactive in navigating customer demands to succeed.
After years of stagnation, Gartner's latest forecast reveals that global IT spending is expected to grow by 7.5% to reach $5.26 trillion. Although investments in IT services, software, and cloud technologies primarily drive this growth, device spending, which has struggled due to inflation and economic uncertainty, is finally expected to also rebound with a 5.4% growth in 2024.
This increase in device spending can be attributed to multiple factors. According to Canalys, one key driver is the need for businesses to refresh technology that was rapidly acquired during the pandemic. Many organisations invested in hardware to enable remote work. As these devices reach the end of their primary lifecycle, a refresh might now be necessary to keep up with evolving digital demands.
The decommissioning of Windows 10 and the rise of AI-powered PCs is also prompting companies to acquire new hardware.
Gartner projects that by 2025, 43% of all PCs shipped will be equipped with artificial intelligence capabilities. At the same time, Canalys analysts suggest 240 million PCs might end up as e-waste next year as support for Windows 10 ends.
Seizing the opportunity, overcoming the challenges
The predicted increase in IT spending undoubtedly offers the channel the opportunity to grow. However, as I mentioned, vendors and partners must make the right moves to capitalise on this trend.
The demand for devices is growing, but cost constraints remain. The market is also crowded, and differentiating and expanding the portfolio of offerings will be vital to staying competitive.
For instance, the regulatory environment and the consumer push for brands to be more sustainable are leading IT leaders to consider both the sustainability credentials of the new hardware as they upgrade and the environmental impact of disposing of their old tech as they decommission it. This means businesses might find particularly valuable partners who can help them access the new technology of their choice while also supporting them in managing the transition responsibly and within their budgets.
In addition to sustainability, data security is another major concern for IT leaders as they navigate the decommissioning process. Responsible IT asset disposition (ITAD) requires responsible hardware refurbishment or recycling and robust data management practices to prevent data leaks or breaches. Businesses will invest in companies prioritising transparency and accountability in this area, providing them peace of mind.
Partnering for growth
Given the complexities of modern IT environments, it’s therefore no surprise that businesses increasingly demand comprehensive solutions spanning the entire IT lifecycle, from procurement to decommissioning.
IT channel players and vendors should not see this as an obstacle but as an opportunity to evolve beyond transactional relationships and establish themselves as trusted, strategic partners for their customers, helping them end-to-end.
To navigate this evolving market, the channel can leverage strategic partnerships to acquire comprehensive lifecycle management capabilities. By providing a comprehensive solution that integrates convenient access to cutting-edge technology, robust data security, and environmental considerations aimed at expanding the overall potential lifespan of assets, channel partners can become indispensable allies to their customers.
Clearly, vendors and channel partners must carefully evaluate their options when selecting a service provider to partner with. For instance, when choosing an ITAD provider, they should only consider those who offer a strict chain of custody, a complete audit trail for every device, digital tracking, secure data destruction, and environmentally responsible repair and refurbishment.
By working with the right partners, channel players can help customers reduce risk and create value throughout the technology lifecycle, generating long-term ROI for the whole ecosystem.
The circular opportunity
With narrowing reputational and regulatory margins, circular technology lifecycle management solutions offer channel partners a compelling way to help their customers future-proof their innovation.
These service models enable businesses to drive growth with new hardware while incorporating end-to-end asset traceability, refurbishment and reuse into their technology procurement processes. This allows them to extend the lifespan of their assets beyond the first life, mitigating the environmental impacts of manufacturing new tech, maximising the value of their technology, and minimising the possibility of devices becoming e-waste.
This approach also contributes to a more sustainable future by fuelling the second-hand electronics market while strengthening a company's reputation and competitive advantage.
See you at the event
I look forward to many of the sessions at the Canalys Forum this year, including hearing our CEO, Jakob Lagander, speak on stage about whether “Truly Circular IT” is a pipe dream or a real possibility.
At 3stepIT, our mission aligns perfectly with this goal. As a leading provider of end-to-end Circular Technology Lifecycle Management solutions, we're committed to shaping a future where technology assets are valued and utilised to their fullest potential.
Through innovative refurbishment and reuse programs, we aim to extend device lifespans and minimise electronic waste. Our end-to-end asset management platform also safeguards data at the end of the first lifecycle and enhances resource traceability.
Looking forward to meeting you all and discussing how we can collaborate and grow together.
See you at the event!