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A TD SYNNEX Company

Tech Data | February 2023

Accelerating the Route


to Market with Next
Generation Technologies
Why Partnering with a Reliable Solutions
Aggregator and Distributor is Key

TD SYNNEX is branded and trades as Tech Data and Tec D in the Asia Pacific region, with the exception of Japan and business
processing/IT outsourcing services provided in China.
Economic turmoil aside, 2023 can be the
breakout year for technology companies in
the Asia Pacific & Japan (APJ) region, if they
know how to connect the right dots in the
ecosystem. APAC ICT spending is predicted to
touch USD 1.4 Trillion by 20261, with
enterprises in the market expected to fork
out digital technology spending worth 3.5x
the size of the economy in 20232. For
instance, Japan’s newly launched digital
revolution has a record budget of over USD 4
Billion for the current fiscal3. The best growth
strategy to beat the FOMO (fear of missing
out) in these tumultuous times is to find a
trusted solutions aggregator and distributor
to deliver tailor-made, end-to-end solutions
that help fight uncertainty, simplify
complexity and create new business models 1. Digital News Asia (2022, September
13). Asia Pacific ICT spending to grow

to drive revenue and profit at speed. despite headwinds: IDC.


https://www.digitalnewsasia.com/bus
iness/asia-pacific-ict-spending-grow
-despite-headwinds-idc

2. IDC (2022, November 3). Spending on


Digital Technology by Asia/Pacific
Organizations Will Grow 3.5x the
Economy in 2023, IDC Predicts.
https://www.idc.com/getdoc.jsp?cont
ainerId=prAP49824922

3. Taro, Kono; World Economic Forum


(January 12, 2023). A digital
revolution for Japan… and the world.
https://www.weforum.org/agenda/20
23/01/davos23-a-digital-revolution-f
or-japan-and-the-world/
TABLE OF CONTENTS

Abstract 4

Section 1 The IT Landscape Right Now 5

• Tech Talent Shortage and Skills Gap Present Operational Challenges


• An Unfamiliar Environment Presents Execution Challenges
• Market Unpredictability Presents Planning Challenges

Section 2 Exploring IT Ecosystem Challenges 9

• Ecosystem Barriers
• Supply Chain Complexities
• Market Constraints

Section 3 Working With The Right Partner To Unlock Value 16

• Accelerate IT Ecosystem to Drive Agility, Growth and Revenue


• Simplify Complexity of IT Solutions, Systems, Partner Networks
and Purchase Decisions
• Streamline Go-To-Market Strategies for Scale and Reach

Section 4 Navigate The Next Frontier 27

• Tackle New Priorities - Help Customers Beat The Recession Blues


• Seize New Growth Areas - 2023 Trends (Global Shifts, APJ Tailwinds)
• Embrace New Partnerships - Make Collaboration a Growth Driver

Conclusion 32

References 33

3
ABSTRACT

Vendors and Partners in the IT ecosystem ‘vendors’ in the whitepaper, we mean


are struggling to balance the competing producers of technology, both hardware and
demands of managing multiple markets software. ‘Partners’ refer to system
across geographies in a volatile environment. integrators, resellers, cloud providers and
They need a reliable IT solutions aggregator Managed Service Providers (MSP). A
and distribution expert with global scale and ‘distributor and solutions aggregator’ refers
reach, whom they can trust to deliver to companies like Tech Data and the ‘end-
localized solutions with globalized users’ refer to the actual users of technology,
capabilities to accelerate their go-to-market like banks, supermarkets, etc.
(GTM) strategies.
The key theme that connects these
This whitepaper will explore in-depth the dimensions is the central role that a leading
four dimensions currently affecting the IT IT solutions aggregator and IT distributor
industry in the Asia Pacific and Japan plays in unlocking value in the IT ecosystem.
(henceforth, referred to as APJ) region - the We will analyze how such a collaboration will
present landscape, the IT ecosystem enable vendors and partners to consolidate
challenges with a special focus on vendors their ecosystem, simplify complexities,
and partners, the benefits of working with streamline their distribution channels, guide
the right solutions aggregator and the market them to find the right technology and invest
opportunities that are waiting to be tapped. in next generation technologies that make
sense for their business and end-customers.
For the sake of clarity, when we refer to

4
3
SECTION 1

THE IT LANDSCAPE RIGHT NOW

The global IT industry is caught in a perfect through long-term business continuity and
storm. IT firms are besieged by volatilities in differentiation strategies.
the environment - the looming threat of
Retaining a competitive edge in a market that
recession, an unprecedented skills gap,
presents both opportunities and challenges
post-pandemic disruptions and market
requires prioritizing the adoption of the right
uncertainties caused by geopolitical instability.
technology as a key differentiator, delivering
While beset with similar challenges, the APJ execution excellence, and maximizing control
region is showing a robust demand for IT. IDC and reach over route to market. Stakeholders
estimates that the market for ICT in APAC is in the IT Ecosystem, from C-suite executives
forecast to touch USD 1.4 Trillion by 20261 and to vendors and partners, however, have to
expects that organizations in the APAC region grapple with several adverse conditions that
will increase spending on digital technology are impacting crucial decision-making
that will grow 3.5x times the economy this agendas.
year2. The push is predicted to come from
Let’s take a closer look at the issues that
enterprises’ intent on operating on a thrive,
affect every stage of IT strategic functioning.
not just survive principle, by building resilience

5
3
Tech Talent Shortage and Skills Gap
Present Operational Challenges

In a burgeoning crisis that grabbed global 2022 reports that 29% of respondents feel
headlines, the IT industry in 2022 was beset their country (Thailand, India and Brazil have
by a profuse shortage of technology talent in the biggest perceived skill gap) lacks a skilled
mission-critical roles such as technical, workforce, with IT featuring as a top sector
presales and services areas, leaving with high scarcity3.
companies vulnerable to economic
The paucity of skilled labor has deep
headwinds and unable to tap the market
repercussions. IDC predicts4 that in the APEJ
potential of digital evolution.
(Asia Pacific Excluding Japan) region, through
A complex and multifaceted issue, the lack 2024, shortcomings in critical skills creation
of appropriate labor demand-supply fit is and training efforts by IT industry leaders will
propelled by the accelerated rise of prevent 75% of businesses from achieving
advanced technologies at a momentum the full value from cloud, data, and
workers are unable to match. The skills gap automation investments, even as, by 2025,
is a profound crisis, finding its way to the top 70% of infrastructure, security, data, and
of the technology challenges that leaders network offerings will require cloud-based
and workers alike foresee for the industry. control platforms that will proliferate
For instance, PricewaterhouseCoopers’ automation and cause significant reductions
Global Workforce Hopes and Fears Survey in ongoing costs.

6
An Unfamiliar Environment
Presents Execution Challenges

Across industries, there is a global shift in investing in creating new products or service
business priorities, from inorganic growth lines can help them tackle disruption, be
strategies through M&As and venture agile to demand changes and respond to
investments in startups, to organic growth, technological changes effectively.
fueled by the launch of new products and
Bringing new services to the market,
services in the market. A McKinsey survey5
however, is a highly complex process that
points out that by 2026, 55% of business
many IT organizations are ill-equipped to
leaders expect half of their revenues to come
execute with excellence. The tall order for
from building new products, services or
charting a new market access becomes more
businesses that respond to sustainability
confounding when one considers
goals and technological changes.
accelerating technology sophistication,
The change in business sentiment comes changing regulations and the impact of
from recalibration of goals from cost-cutting unforeseen and destabilizing market
to revenue generation, as more than 80% of scenarios.
the respondents vehemently agree that

7
Market Unpredictability
Presents Planning Challenges

Strategic planning6 is the fulcrum of driving thinking about a future strategy for a
business growth in an intended direction, business, but it is critical, as a company’s
where efforts are prioritized, resources are stability and revenue depend on it.
allocated and employees and investors are in
With global economic fluctuations,
sync with the organization’s trajectory to
companies have to be strategic in evaluating
meet data-driven goals that can be tracked
their partners, their location and production
over time. It is a dynamic, continuous
metrics7. Leaders must emphasize on
process that makes an organization proactive
transforming business processes to become
rather than reactive to change. Strategic
more efficient, implement automation and
planning provides alternate routes of
best practices to improve service and
functioning in the case of unpredictable
productivity, strip legacy IT infrastructure and
events.
migrate to the Cloud and XaaS
Planning in an ever-changing market is, (Anything-as-a-Service). On the financial
however, a debilitating challenge. It can be front, the priority must be to reduce debt,
difficult to move from reactive activity to control costs and expand revenue streams.

8
SECTION 2

EXPLORING IT ECOSYSTEM CHALLENGES

Comprising an intricate web of stakeholders ecosystem faces a unique set of challenges,


- technology solution providers, innovators, which, if left unaddressed, can have a
OEM manufacturers, vendors, partners, rippling effect on the larger industry.
financiers, distributors and end-customers, Let us understand these challenges in depth,
the IT Ecosystem for every organization may focusing on the issues that vendors and
differ based on the nature and scale of partners face.
operations. Every participant of the

9
Ecosystem Barriers

Today’s IT consumption habits are changing. The exponential rate9 at which technology
There is a determined thrust towards cloud such as these are advancing is
technologies and as-a-Service (aaS) models overwhelming, to say the least. While this
that are emerging as indispensabilities rather was prophesied in Moore’s Law (computing
than choices. power will increase every 18-24 months) and
Bell’s Law (every decade, a new class of
For example, Tech Data’s Technology
cheaper, faster, smaller computing emerging,
Ecosystem Benchmark Report8, which
creating new market opportunities and
surveyed 300 mid-sized ecosystem partners
industries), to have it unfold in the real world
globally, revealed that 53% of partners in the
can cause many to suffer from ‘future shock’
APJ region feel that flexible consumption
or the heady disorientation that comes with
models are frequently requested by
experiencing changes that are too rapid to
end-customers, with 47% offering these
keep up with.
services already, and 45% planning to provide
them to their end-customers over the next
24 months.

53% of partners in the APJ region feel that flexible consumption


models are frequently requested by end-customers, with 47%
offering these services already, and 45% planning to provide
them to their end-customers over the next 24 months.
10
Vendor Challenges
Vendors are tasked with having must define and execute marketing
programmes in place that empower initiatives that drive the uptake of
the larger partner ecosystem, in a relevant technologies at pace and
manner that partners can enable scale across the ecosystem that
themselves and their captures the market potential in
end-customers to grow and evolve time.
their routes to market. Vendors

Partner Challenges
On the other hand, partners must take on the responsibility of
possess the skills to speed up and identifying and sourcing the right
expand market opportunities for financial solutions that make these
their end customers. They must undertakings possible.
have the foresight to accelerate
Success in overcoming these
digital efforts and increase the
ecosystem barriers are defined by
sales funnel into those industries
the ability to make the right call -
and verticals that have growth
understanding which of the
prospects for the future.
emerging technologies will lead to
Filling gaps in capabilities and the highest rewards, and charting
complementing their existing GTM the right approach to leveraging
strategies with friendly technology them. Failure to pivot would mean
solutions is another key indicator of missing the bus on landing,
a partner’s performance and securing and retaining customers
reliability. Finally, they also have to and their loyalty.

11
Supply Chain Complexities

If customer centricity is at the core of an products and services to factor in while


organization’s value system and growth making the right choice, which makes the
strategy, then the supply chain is the process non-linear.
bulwark, as it determines two of the most
Buyers of project management systems, for
important aspects that measure customer
example, have to choose, on an average,
satisfaction - customer retention rate versus
between 300 vendors13. This number goes
churn rate, and Time To Value (TTV).
higher for other software categories, sending
Owning and managing multiple aspects of buyers in a paroxysm of choice paralysis.
the supply chain is no small feat. The entire American Psychologist Barry Shwatrz called
process, starting from purchase this phenomenon ‘The Paradox of Choice’ 14,
decision-making, to procurement and where having more choices reduces
delivery is riddled with 8 types of customer satisfaction, as it requires more
complexities - network complexity, process effort on the part of the customer to make a
complexity, range complexity, product decision.
complexity, supplier complexity, customer
The lesson here is that a vendor who
complexity, organizational complexity and
simplifies the complexity of the
information complexity10.
decision-making process will drive the most
The most arduous challenge is that the value for the customer.
supply chain only adds on further intricacies
Q: Consider the following business challenges, which
as the scale of operations increases, directly
are likely to impact you in the next three years?
impacting cost, risk, reliability, service level,
customer satisfaction and the capacity to 75%
In 3 years time
control and implement change11.
50%
In a B2B buying of technology solutions12, for
example, 6-8 decision-makers, each coming
25%
with their own informed decisions, must
gather and reconcile differences before a
0%
purchase is made. There is also the added
Competition and Talent Recruiting Rapid Digital
layer of complexity to consider - the Margin Pressure and Retention Transformation
ever-evolving scope of technology, suppliers,
Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74
Asia Pacific respondents, July-September 2022 © 2022 TD SYNNEX Corporation.

12
Vendor Challenges
Vendors at large are themselves evolving a growing network of
enmeshed in incredibly complex partners and customers.
supply chain conundrums. These Simultaneously, they must make
can range from co-ordinating sense of transaction data, all at a
between multiple players, managing pace that can keep up with the
cross-border logistics and speed of technological changes,
multi-currency billing across several which again upturns the market in a
markets in different countries, and different trajectory.

Partner Challenges
Partners have their own dilemmas fueled the growth of e-commerce.
to confront - they need a fast and Just like in retail, online
sophisticated approach to marketplaces have revamped and
differentiate their offerings while in streamlined the IT purchasing
tandem, focus on packaging, channel, making, as we’ve seen
integrating, architecting, deploying before, choices all the more
and scaling solutions. The unabated prevalent and difficult to make.
tides of digital transformation have

13
Market Constraints

The next dimension of challenge that competes products accelerated by seven years. The
for attention is the go-to-market (GTM) disruption and unpredictability of the pandemic
strategy. Building and accelerating the route to drove businesses to seek out
market while mired in a convoluted supply subscription-based, AaS models to better
chain is not an undertaking one can execute in address the variabilities and seasonality of their
silo, for the simple reason that merely reaching business cycle.
the product or solution to the end customer
An average of seven stakeholders are now
does not end the journey; digitalisation has
involved in purchase decisions and in a
drastically changed customer expectations.
fundamentally significant shift, 90% of the
Delivering IT products and services to
value is reported to be derived from business
customers is the starting point for
outcomes rather than IT priorities.
implementing their IT-enabled growth strategy,
which reflects a transformation in focus from Customers, especially B2B customers, are not
cost-cutting to revenue generation as just satisfied with merely purchasing solutions
businesses seek resilience against volatilities. - they want sales teams to prioritise expertise.
They are showing interest in gaining greater
One need not look further than the COVID-19
control of their digital transformation through
pandemic to see the unfolding of this tectonic
simplified, self-serve channels at every step of
shift. According to a McKinsey study15, the
their buying journey - made possible through
pandemic ‘transformed businesses forever’, as
the cloud. This has inevitably disrupted the
the adoption rate of digital or digitally enabled
traditional ‘GTM playbook’.

Q: What percentage of your business is derived from the following today? How will this change in three
years' time as a percentage of your total business?

Resell Hardware Resell Services Resell Software Sell Own IP

TODAY

Increase No Change Decrease

Selliing Own IP

Resell Hardware

Selling Product Lifecycle Services

Resell Packaged Services


IN 3 YEARS
Resell Software

Selling Consumption based XaaS

Selling Managed Services

Selling Professional Services

0 25 50 75 100 125

Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74 Asia Pacific respondents, July-September 2022 © 2022 TD SYNNEX Corporation.
Vendor Challenges
Vendors now must cater to altered, Once reach is achieved, the next leg of
more demanding customer the challenge in the case of product
expectations. Ramping up the ability companies is to locate warehousing and
to reach end-users is not feasible build a supportive network of resellers,
without support. They need a who need help with architecting and
cost-effective business model that configuring solutions. The all-important
allows them to reach the market customer satisfaction in both pre and
without having to drain resources post-sales stages is necessary to
further by employing a salesforce or prevent churn, all of which is occurring
resorting to selling directly to partners. on a global scale.

Partner Challenges
Partners, on the other hand, are Partners also need to have a trusted
reeling under the crushing blow of the network of people, technology and tools
skills gap that is preventing them from that will continually match pace and
resolving customer issues and needs respond to changes in customer
quickly. Continuous upskilling and demands and expectations. In-house
mastery are the need of the hour - to teams need training in being equipped
be sure-footed in choosing the right with the right skills and expert-driven
technology, position its value support to solutioning and architecting
propositions and sell the solutions in a products.
combative market.
Beyond this overarching scope, they
With customer experience becoming must also focus on gaining access to
central to retention, partners must be multiple avenues to financing, and
global in outlook and local in reach, finding their right place in the rich IT
where they have to strike an unerring ecosystem that furthers their growth
balance between the demands of potential, so they can do more to offer
being nuanced, gaining relevance with more to their end-customers.
their customers while creating wider
geographical coverage.

15
SECTION 3

WORKING WITH THE RIGHT PARTNER TO UNLOCK VALUE

With increasing digitization, the emergence of Just like the rest of the ecosystem, the role
the strategic value of IT as a competitive of a solutions aggregator has undergone
differentiator is inevitable. The challenge lies dramatic changes16 with digital evolution.
in orchestrating harmony between complex While traditionally, they were expected to
end-customer needs and technology support vendors in procurement and
deployment that drives innovation, fuels resellers in accessing products through
agility, controls costs and addresses the distribution channels, today, soultion
digital skills gap is critical to establish aggregators are more than just partners with
mastery over GTM pathways. stellar logistics credentials.

For IT stakeholders, bringing resolution to In a dynamic and growing marketplace, they


competing ecosystem demands, however, is are the vestige of support vendors and
challenging to achieve without leaning on a partners can rely on, with global scale and
reliable solutions aggregator and IT expertise in transforming businesses
distributor who can connect the right dots, end-to-end with tailored solutions.
and unlock the opportunities in the Let’s understand the three pillars of support
technology partner ecosystem. a trusted IT solutions aggregator and
distributor provides.

16
Accelerate IT ecosystem to drive
agility, growth and revenue

Any IT ecosystem player would look to vendor-partner relationship dynamic.


maximise investments in technology. A way
Here’s how an invested solutions aggregator
to achieve this is to accelerate technology
and IT distributor benefits vendors and
adoption in the broad market by
partners to accelerate the IT ecosystem to
transforming and strengthening the
drive agility, growth and revenue:

Vendor Benefits

• Facilitates a technology partner ecosystem - • by making vendors nimble and fast-footed


By providing specialized solutions that in responding to changing and deepening
empower vendors to recruit new partners, customer needs, such as the demand for
enable and grow these partners through AaS and subscription models.
marketing campaigns that encourage them
• Aids in demand generation - By providing
to sell more to end-users, an active
services that align with the vendors’
solutions aggregator ensures sustainable
product offerings and enhancing brand
business impact for vendors through greater
awareness of the vendor in the market, a
customer retention.
solutions aggregator streamlines
• Meets evolving customer needs - A solutions marketing efforts, thereby ending vendors
aggregator has the unmatched ability to in lead generation that can in turn expand
ensure vendors can benefit from driving their market share.
stability while operating in a volatile market,

17
Partner Benefits
• Provides insights that drive growth - • the foundation for integrating all emerging
Partners need a reliable aggregator and digital capabilities, a solutions aggregator
distributor to understand the true nature of enables partners to make the thrilling
the IT ecosystem and unravel its journey from cloud to edge computing and
complexities through actionable insights take advantage of the next-generation
and transfer of knowledge, so that they can technology segments, such as cybersecurity,
tap growth opportunities they otherwise big data, analytics, IoT, mobility and aaS.
would have missed. Newer capabilities not only create newer
markets, they also provide anchorage during
• Unlocks innovation that stimulates positive
troubling times.
sales outcome - A dynamic solutions
aggregator invests in innovation, so they can • Reduces redundancies to accelerate GTM –
help partners address constantly evolving The success of a GTM strategy depends on
challenges with cutting-edge technologies. the marketing efforts that precede it. With
Additionally, by collaborating with an keen foresight on the road ahead, a
aggregator with deep-seated knowledge of solutions aggregator and distributor will
the ecosystem, partners can take advantage refine a partner’s optimal GTM strategy and
of modern marketing techniques, strategic create customized marketing plans through
marketing plans and solutions that will strategic procurement or enabling strategic
drive strong sales outcomes. alliances with resellers or other vendors.
With the GTM architecture firmly in place,
• Enhances stakeholder capabilities to drive
the partner can avoid wasteful efforts at
cost efficiency and effectiveness - When a
redundant operations and focus on
product has a mixed target group, such as
value-added tasks, such as creating new
small businesses and large enterprises
services.
across different business verticals, the
most competitive advantage is gained by • Promote business sustainability through
using the shortest and cost-effective route financing - Deploying technologies often
to market. A solutions aggregator not only involves substantial capital expenditures
helps determine the connections that that may not be accessible to many
would enable cost efficiency and cost stakeholders. A trusted solution aggregator
effectiveness, it also continually enhances can guide partners to secure financing by
the stakeholder’s capabilities to be connecting them to banks and lending
market-ready. institutions, allowing partners to confidently
expand their end-user base and establish
• Harnesses next-generation technology
financially sustainable businesses.
segments - While cloud technology is now

18
TECH SPOTLIGHT :
Tech Data’s Center of Excellence (CoE)

Tech Data’s prime offering is the Center of and partners to test the viability of their
Excellence or CoE, a technology focused business strategies from assessment to
initiative across Asia Pacific and Japan. An proof of concept, co-innovation and
adaptive, virtual lab environment built for the enablement stages.
channel ecosystem, the CoE allows vendors

For Vendors
The CoE houses multi-vendor next and deployment. This suite of readily
generation technologies - Data Center and available and tested solution offerings
Hybrid Cloud, Cloud, Data Analytics, and enables customers to innovate, drive agility
Security. These technologies support the and accelerate their success and speed to
most common and complex IT problems, market.
offering easy configuration, customization

For Partners
The CoE focuses on a three-step solutions Sales Acceleration, which allows partners to
aggregation approach that simplifies leverage Tech Data’s pool of solutions
complexity and streamlines go-to-market for architects’ technical expertise to win.
partners. They are:
In essence, the CoE makes it possible for TD
Practice Builder, which assesses partners’ SYNNEX, Tech Data, and Tec D to add more
readiness and supports them via customized value, help our partners succeed, and grow
training to build up a practice. the IT ecosystem as a whole, using a more
data-driven approach.
Solutions Factory, that co-innovates use
cases with vendors and partners, to ensure Let’s understand the capabilities of the CoE
customer and end-user relevance to with a use case.
generate opportunities.

19
Analytics : Intelligent data fabric solution for a leading
multinational IT vendor

Customer challenge Solution

• Data silos, hence unable to access data Cloud Pak for Data is an intelligent
data fabric solution that combines and
• Data definition and governance issues
automates data and AI lifecycles,
• Multiple tools for data analytics and AI
simplifying intelligent data
• Need for data modernization management to accelerate digital

• Increased data management cost transformation.

Key features Differentiators

• Cloud Pak for Data is certified on Red • Single platform that can collect data,
Hat OpenShift Platform, can be deployed organize, analyze, and infuse AI.
on premise or any cloud (Azure, AWS). • Hybrid and multi-cloud enabled.
• Red Hat OpenShift operator support for • Best-in-class governance.
robust DevOps lifecycle management.
• Support a large set of data sources
• Automation to tackle data complexity with data virtualization.
with Auto SQL, Auto Catalog, and Auto AI.
• Run analytics 8x faster and at half
• SPSS Modeler complements in-house the cost in a secure environment
vendor software platform for building AI without copying or moving data.
solutions.
• 53% faster data access with AutoSQL
• Intelligent data integration with unified compared to the industry
data governance. benchmark.
• Self-service data consumption and • Ability to add cartridges to expand
collaboration. capabilities.

20
Simplify complexity of IT solutions, systems,
partner networks and purchase decisions

A leading solution aggregator and distributor multiple and varied solutions that address
plays a vital role in the technology ecosystem specific requirements - thereby enabling it to
with connections that extend across the remove complexity and simplify the route to
depth and breadth of software and hardware market.
services. With its wide range of experience,
Let us understand how this unfolds for the IT
expertise, and global reach, it has the unique
ecosystem, where the solutions aggregator
ability to assimilate the best way to package
renders advantages.

Vendor Benefits
• Drives collaboration - A capable • through the customer life cycle. A
solutions aggregator prioritizes solutions aggregator not only
promoting peer-to-peer helps keep track of contract from
connections among vendors to the project initiation stage, but
facilitate collaboration and also ensures re-engagement
co-creation of products and through proactive value-added
solutions that will improve their services to partners and
prospects in the long-term. customers, allowing stakeholders
to capture additional revenue
• Manages product life cycle
from a variety of account
globally - Vendors are besieged
management functions, upselling,
by the sheer volume of
cross-selling and contract
customer data that they must
renewals.
confront to perform operations

21
Vendor and Partner Benefits

• Breaks Down complexity - • Functions as single source center –


Paving a frictionless way forward Solution aggregators aim to add
through the supply chain is one more value to the channel partners
of the most strenuous aspects by providing enablement, technical
of an IT stakeholder’s know-how, training and a high
functioning, especially when technology service line that
vendors and partners are addresses complex reseller
meeting higher order problems. As a result, they have
expectations, like delivering aaS emerged as one-stop-shops,
models. This is where a solution functioning as a single source
aggregator steps in, breaking center for access to hundreds of
down supply chain barriers and thousands of advanced products,
automating how solutions are experts services and solutions with
aggregated, i.e., how solutions just a click.
are pre-assembled to allow
• Future-proofs capabilities - IT
resellers and service providers
stakeholders understand that
to deliver them to
having the latest technology at
end-customers.
hand is not enough to realize its
• Automation solutions from their full potential. In order to extract
solution aggregator and maximum capabilities of a
distributor allows vendors and technology, it’s important to
partners to eliminate support deployment with the right
redundancies, errors and most skills, strategy and architecture to
importantly, simplify purchase future-proof both the solutions
decisions across a host of and the larger business. Solution
intricate factors, such as aggregators are stepping up the
packaging products from diverse game with multi-vendor hybrid
product stacks, establishing a solutions that give vendors and
billing desk, enabling currency partners visibility and control of the
conversions with cross-border services supply chain, enabling
market proliferation and track them to monetize every part of the
the movement of prices on a digital services life cycle.
monthly basis.

22
TECH SPOTLIGHT :
Tech Data’s StreamOne® Ion

Tech Data’s StreamOne® Ion evolved as a Customizable reseller white label storefront -
response to the need for an IT ecosystem Customer self-service lifecycle management,
orchestration platform to meet not just automated billing and multi-currency set
today’s IT demands, but accommodate future pricebooks
trends comfortably, irrespective of where an
Customer management tools - Dashboards,
ecosystem stakeholder is placed in their
reports, customer support and billing
digital journey.
management, storefront configuration.
Ecosystem orchestration is required to
SIE can support multi-vendor and
navigate expanding customer choices and
multi-partner engagements while proliferating
reduce complexities that have come with
a digital-first mindset.
increased adoption of cloud, so that partners
and vendors can help customers take greater Designed to handle growing sophistications

control of their digital transformation. that come with expanding solution aggregation
(self serve provider onboarding, security and
SIE, with its API-driven, multitier configurable
financial operations, advanced analytics and
architecture is a single source, multi-cloud
alerts) and ecosystem orchestration (GTM
management platform, equipped with:
enablement, predictive analytics,
Solutions marketplace with over 50 recommendation engine), SIE is the ideal
click-to-run solutions, bridge between legacy systems of the past
and today’s ‘born-in-the-cloud’ enterprises.

TECH SPOTLIGHT : StreamOne® Stellr

The Stellr Marketplace is a cloud platform to they need. It provides free integration, setup
provide resellers and vendors with the and use, along with constant improvements
management and purchasing capabilities and additions to its feature set.

23
Streamline Go-to-Market
Strategies for scale and reach

Solution aggregators have enhanced their to support vendors and customer scale and
distributive acumen with cross-functional streamline their GTM strategy. Let’s explore
capabilities to meet emerging technology how.
needs, to ensure that they are in a position

Vendor Benefits
• Enables implementation of the ‘Glocal’ • are location-agnostic, allowing vendors to
approach – Solution aggregators can implement the ‘glocal’ approach of
provide IT stakeholders with a significant addressing local needs with
advantage by leveraging their massive customizations, while retaining the global
ecosystems, global footprint and scalable outlook. With this adaptability, it
models to expand customer reach. becomes easier to package, integrate,
Operating on a ‘build once, execute architect, deploy and scale solutions at a
anywhere’ model, tech tools and pace in sync with technology changes.
programs offered by solution aggregators

24
Vendor and Partner Benefits

• Address skills gap - To minimize the brutal • have the liberty to rely on those services to
impact of the skills gap in the IT chart their own path to market.
ecosystem, solution aggregators offer
• Handling the speed and complexity of
pre-packaged, ready-to deploy solutions
building market access requires an agile
that ease the pressure of hiring for roles
mindset, which a solution aggregator brings
with in-demand skills like cloud architects.
by working in sprint cycles to integrate the
With the added layer of technical expertise
necessary elements of the GTM strategy
and market knowledge that distributors
quickly. Once the plan is in place, the
possess, vendors and partners can ensure
aggregator will gear the entire arc of GTM
they meet their promises to
toward success - from building sales
end-customers.
content, running analytics, developing the
• Mobilizes marketplace benefits - The B2B marketing campaign, positioning and
IT services landscape has metamorphosed architecting the product or service,
with the advent of the marketplace as a reducing friction with the purchase cycle
distribution channel. With cloud-enabled through centralized pricing and invoicing
online marketplace solutions, vendors and and enabling the launch across multiple
resellers can aggregate solutions at speed, countries in the most impactful manner.
while expediting the process of marketing,
• To further these marketing initiatives,
branding, ordering and delivering services.
solution aggregators also have experts on
The turnaround time has reduced from
board to provide strategic and practical
weeks to hours, thanks to the enormous
support, such as in imparting training and
capabilities of the cloud. Designed on an
developing marketing assets.
easy to scale axis, vendors and partners
can further chase and secure more cloud • Gives control over supply chain - The true

opportunities. satisfaction in enabling the route to market


is seeing the fruition of all the stages of the
• Accelerates GTM - GTM acceleration
life cycle until it reaches the end-customer.
depends on several factors - how quickly a
When the steady guidance of a solutions
stakeholder can deploy a solution and how
aggregator, stakeholders can reap the
much value a customer will receive upon
benefits of end-to-end supply chain
delivery. A reliable solutions aggregator will
management, including garnering the right
offer white-labeled services that can be
technology and meeting compliance,
implemented instantly, and customers
regulatory and security requirements.

25
TECH SPOTLIGHT:
Tech Data’s Sales
Play-as-a-Service For
Enhanced Vendor Success

Tech Data’s Sales Play-as-a-Service


(SPaaS) is a new solution that acts as a
global engine and employs a strategic,
closed loop approach to simplify the
sales process, so that vendors and
partners can derive incremental value
in their sales journey. Whether it is by
growing market share in key segments
across Asia Pacific and Japan,
expanding the base of active partners,
accelerating new product launches or
aggregating solutions for
complementary brands, SPaaS charts a
clear roadmap to success, making it
possible to boost sales, elevate brand
awareness, increase return on
investment, achieve greater scale of
operations and improve profitability.

26
SECTION 4

NAVIGATE THE NEXT FRONTIER

FOMO, or the Fear of Missing Out17, is a pop captures the unpleasant reality of losing a
culture moniker for the psychological competitive advantage because you either
phenomenon of experiencing anxiety and couldn’t keep up with change, or didn't
compulsive behaviors, triggered by the fear of notice it pass you by.
exclusion or ostracism. In the previous section, we took a deep dive
Initially used in the 2000’s to describe the into the benefits of partnering with a trusted
reaction to social media, the term FOMO, solutions aggregator and IT distributor to
coined by venture capitalist and achieve great outcomes with technology. In
entrepreneur Patrick J. McGinnis while he
18
this concluding section, we will take a look at
was at college in Harvard, FOMO is now what lies ahead for the IT ecosystem and
broadly used in the current cultural context how you can beat the FOMO by collaborating
to refer to virtually any missed opportunity in with a reliable IT distributor as your
the technology business, it perfectly competitive differentiator.

27
Tackle new priorities - help customers beat the
recession blues with digital strategies

In January 2023, just days into the New Year, the capex on IT, cull contract staffers and delay digital
World Bank made an ominous prediction that technology implementation, in 2023, companies
global growth had slowed and that the world was will focus on adoption of as-a-service delivery and
‘perilously close’ to a recession, with a forecast operating models, leverage contract staff to
growth rate at a weak 1.7%19. The APAC region, address labor shortages, and prioritize
however, is expected to buck the global trend high-impact digital business projects.
and lead with a growth rate of 3.5%20.
By 2024, the ecosystem in the region will advance
Despite the fallout from the U.S. and European to the extent that 30% of organizations will have a
markets, there is good news for IT companies in business continuity crisis management strategy
the region, as digitization remains a ‘recession that promotes continuous intelligence and enables
proof’ business priority for B2B enterprises. In an agile reaction to future economic shocks and
India for example, Gartner says that IT spending disruptions.
is expected to grow by 2.6% in 2023, with
IT ecosystem stakeholders must therefore rely on
end-user spending on public cloud predicted to
a robust distribution partner to take advantage of
grow by 27% in the same year21.
the opportunities presented by the recession.
Japan, which embarked on a paradigm-altering
digital revolution amid the COVID-19 pandemic, is Q: What percentage of your business is derived from the
aggressively pursuing its goal of consolidating its following today? How will this change in three years' time
as a percentage of your total business?
digital infrastructure through large-scale legacy
overhaul in both the public and private spheres.
Resell Hardware Resell Services Resell Software Sell Own IP
TODAY

The cabinet-level Digital Agency, appointed in


2021 to oversee the country’s digital
Increase No Change Decrease
transformation initiatives, has earmarked a
Selliing Own IP
massive budget of over USD 4 Billion for various
Resell Hardware
projects22. In a Reuters poll of 400 Japanese
IN 3 YEARS

Selling Product Lifecycle Services

companies, 90% reported that their capex on Resell Packaged Services

Resell Software
technology would either stay the same or
Selling Consumption based XaaS
increase in 202323. Selling Managed Services

Selling Professional Services


IDC2 states that the ‘recession playbook’ in the
0 25 50 75 100 125
APAC region is also rapidly undergoing
transformation. Unlike the traditional response to Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74 Asia

Pacific respondents, July-September 2022 © 2022 TD SYNNEX Corporation.


recessionary pressures, where enterprises cut
28
3
Seize new growth areas - 2023 Trends
(Global shifts, APJ tailwinds)

A surefire way to avoid FOMO is to capitalize on contemporary digital technology trends that
are shaping the IT ecosystem. Here are the digital imperatives that stakeholders must navigate
in the near future:

• Cloud is here to stay, grow and take charge - • Manufacturing, construction, utilities and other
Cloud is a global business priority, not just a industrial enterprises in APAC will lead the way
technology one alone. The digital thrust forced in adopting cloud based Digital Industrial
upon by the COVID-19 pandemic set off a wave Platforms (DIPs) to drive cohesiveness
of positive digital transformation strategies, between Information Technology (IT) and
making cloud computing the largest share of IT Operational Technology (OT).
spending globally.
• The demand for AaS models is propelling the
• Consider these impressive numbers that speak expansion of the cloud portfolios offered by
of the centrality of technology in the IT APJ partner companies, as cloud is considered
ecosystem - the cloud computing market in as the foundational technology on which other
APAC is expected to reach USD 200 billion by next-generation technologies, such as Artificial
202424. The APAC region is also emerging as the Intelligence, Machine Learning, Mobility and
new epicenter for cloud adoption, hosting 37% of Edge, Device as a Service and Digital
cloud data centers - the largest in the world . 25
Transformation can be implemented10.
Aggressive investments are underway to expand
onshore capacity in emerging markets like Q: Which technology solutions do you plan to offer
in the next 24 months?
Malaysia, Thailand, and Vietnam. Japan is also
one of the largest public cloud markets in APAC, 30%

expected to grow to USD 18 billion in 202326.


20%
• In 2025, Forrester27 says that 60% of
infrastructure, security, data, and network
10%
offerings in APAC will require cloud-based
control platforms that enable extensive
0%
automation and promise major reductions in Multi-Cloud Cloud Cloud Cloud
Integration Deployment
ongoing operational costs.
Management Migration

Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74 Asia


Pacific respondents, July-September 2022
© 2022 TD SYNNEX Corporation.

29
3
• Cybersecurity is a major threat, and • The age of collaborative robots has arrived -
opportunity - Spurred by multi-access edge The relevance of a technology is shaped by
computing, revenue from the 5G rollout across emerging socio-cultural and economic needs.
APAC will touch USD 23.89 Billion in 2023, at an For example, the rise in the aging population in
astounding CAGR of 62.2% . With significantly28
countries like Japan, Singapore, and South
improved performance, 5G will act as an Korea will prompt 35% of enterprises to adopt
enabler for the integration of new technologies robotics to remain resilient in the face of
such as AI, cloud computing, and robotics, crippling labor shortages27.
which increases real-time automation and
• AI is becoming mainstream - IDC estimates
fosters greater connectivity in workspaces,
that spending on AI systems in APAC will rise
while significantly expanding the monetization
from USD 17.6 billion in 2022 to approximately
potential for mobile operators.
USD 32 Billion in 202530. Organizations in the
• The increasing proliferation of 5G also brings region are expected to invest more on AI
with it enormous security risks. IBM's annual systems over the next three years to improve
X-Force Threat Intelligence Index reports that employee efficiency and speed up
Asia was the most targeted region for decision-making, among other goals.
cyber-attacks in 2021, with financial and
• Additionally, Forrester reports that 80% of APAC
manufacturing companies taking 60% of the
data and analytics decision-makers are building
hits particularly in India, Japan and Australia . 29
AI technologies, ahead of their global
The APJ region therefore, has an expanding
counterparts (73%)27. This trend will prompt
market potential for cybersecurity products and
one in four CIOs and CTOs to lead AI
solutions. As such, it was no surprise that
governance to increase trust in the technology,
security technology solutions emerged as the
as a broad-level interest along with
top revenue and profit drivers for IT partners
cybersecurity and compliance.
who participated in the survey for Tech Data’s IT
Ecosystem Benchmark Report10.

Q: Considering your business during the last 12


months, from the list of technologies below,
choose the top three revenue drivers, then select
the technology that provided the most profit.

Most Profitable Top Revenue

Security

Servers and Storage

Networking

Hybrid Cloud
Aggregate % of
Applications Top 3 selected

Endpoint Devices

0% 10% 20% 30% 40% 50%

Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74


Asia Pacific respondents, July-September 2022 © 2022 TD SYNNEX Corporation.
• Metaverse shows promise – The Metaverse, an This forecast is corroborated by Tech Data’s IT
immersive virtual world, where human beings Ecosystem Benchmark Report, as 12% of
can experience life in 3D, is seeing billions of surveyed partners in APJ revealed that they
dollars of investment by Big Tech companies. would be offering Metaverse solutions over
Forrester predicts that industrial metaverse the next 24 months, as compared to 3% who
investments will double in the APAC region in currently offer AR/VR/metaverse solutions10.
2023, with manufacturing establishing the first
mover advantage in implementation27.

How will the technology ecosystem capture the metaverse market opportunity?

12% Of APJ partners plan to offer


3% Of APJ partners currently
12% AR/VR/metaverse solutions within 3% offer AR/VR/metaverse solutions.
the next 24 months.

Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74 Asia Pacific respondents, July-September 2022 © 2022 TD SYNNEX Corporation.

Embrace new partnerships - making


collaboration a growth driver

Like this white paper has emphasized repeatedly, it is Much like in a biological ecosystem, the goal is to
unwise to operate in isolation in today’s complex IT establish principles of symbiotic collaboration that
ecosystem. Collaboration, not competition, has emerged create a positive feedback loop, providing benefits for
as a critical growth driver. both individual partners and the ecosystem as a whole.

In fact, an overwhelming 94% of respondents in the Solution aggregators achieve this harmonization by
Benchmark Report agree that they view increased providing a global platform, addressing ecosystem
ecosystem collaboration as a critical growth strategy . 10
challenges, simplifying complexities and developing
effective routes to market strategies quickly. By
This welcome increase in appetite for ecosystem
fostering collaborations, solution aggregators enable
partnership is not an unusual trend, as stakeholders
vendors, partners and their end customers to grow and
across the board realize that delivering specialized
maintain with stability, allowing them to retain a
solutions to end-consumers means leaning on experts
positive outlook in an uncertain market and achieve
across a wide range of disciplines.
great outcomes with technology.
The barriers to scale quickly come crumbling down when
partners actively look for, identify and collaborate rather Q: Which business skillsets are you hiring for? Rank
the top three in order of hiring priority.
than compete with peers who complement their
offerings, so that they can meet and deliver advanced Business Planning Demand Generation

34% 45%
technology needs such as digital transformation, cloud
migration, data center modernization to drive larger Managed Services Professional Services
74% 55%
business outcomes for their customers.
Source: Canalys, Candefero TD SYNNEX Technology Ecosystem Index Survey, 74 Asia Pacific
respondents, July-September 2022
© 2022 TD SYNNEX Corporation.
CONCLUSION

A world-leading solutions aggregator, Tech


Data brings solutions clarity from its rich
ecosystem. We make selling, consuming, and
servicing technology frictionless, and simplify
complex purchase decisions.

As the world’s largest IT distributor, we have


the reach, stability, and financial backing to
realize rapid outcomes at scale while
providing local assurance to teams on the
ground. We are the trusted GTM advisor with
a strong presence in Asia pacific and Japan.
We help more than 150,000 customers in
100+ countries maximize the value of
technology investments.

Connect with us to know more about how to


collaborate to unlock the true value of your
IT ecosystem.

32
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