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Channelnomics Community Call – Feb. 15, 2022

February 17, 2022
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Posted by: Channelnomics
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Categories: Blogs

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RECAP: Sustainability Steals the Spotlight

By Alice Gunther

Going green may once have been a “nice-to-have” initiative, but it’s fast becoming an organizational imperative. A record drought in the Western U.S. – where many major technology companies are based – and a spate of natural disasters in 2021, the sixth hottest year on record, have done much to raise ecological consciousness in the channel.

During the Feb. 15 Channelnomics Community Call, Vice President of Strategic Content T.C. Doyle focused on the sustainability imperative, an issue commanding the attention of ICT vendors and partners alike.

First, though, Doyle introduced two new members of the Channelnomics team: Lee’Ann Burgess, senior marketing director, and Jennifer Pinnata, executive assistant. He also announced the upcoming release of Channelnomics’ 2022 Channel Forecast and Channel Chief Outlook. As a preview, Doyle shared some statistics from the research. Among partner respondents, 65% saw meaningful growth (of more than 5%), and 70% say they expect to grow their top-line revenue by at least 5% in 2022. At the same time, channel leaders have some concerns – about partner transformation, for example – with 6% saying they don’t have the right partners, 29% actively looking for new ones, and 83% worrying that their partners won’t hit their revenue goals.

Doyle introduced the topic of sustainability by announcing Channelnomics’ latest report, “Digital Goes Green: The Business Case for Environmental Sustainability in the ICT Industry,” which was made available to CiQ subscribers in January. The report examines the drivers of sustainability in 2022, where ICT stands relative to other industries, and what tech companies are doing to reduce their carbon footprints. A few statistics:

78% of customers are more likely to purchase a product that’s labeled as “environmentally friendly.”
64% of customers will pay more for sustainable products.
2,300 global entities have signed on with the Science-Based Targets Initiative (SBTi), which strives to help companies set targets for emission reduction that align with climate science and Paris Agreement goals.

Here’s what individual tech companies say they’re doing to achieve a more sustainable approach:

Microsoft is already carbon-neutral, but its aim is to go carbon-negative – negating its environmental impact dating all the way back to the company’s founding in 1975.
HP is committed to 75% circularity for its products and packaging by 2030, while 100% of Cisco products and packaging already incorporate circular design.
Google runs on carbon-free energy, and by 2030 all its data centers will be carbon-neutral. SAP is aiming for carbon neutrality by 2023, while Salesforce is aiming to reduce value-chain emissions 50% by 2030 and to nearly 0% by 2040.

Scotland’s 2021 United Nations Climate Change Conference, or COP26, saw many companies making bold sustainability pledges. According to Channelnomics, here are some questions that need to be asked of tech companies:

Are companies extending their initiatives to partners, and are the initiatives voluntary or required?
What are the metrics that matter when it comes to sustainability?
Are there penalties for falling short of goals?

Doyle noted that many hardware companies have demonstrated a true commitment to sustainability through their actions. He named Cisco as an example, citing the company’s initiative to work with partners to reclaim used equipment. That program boosts Cisco’s top and bottom lines, opening up opportunities to sell new equipment and upgrade customers.

Companies are using sustainability “as a means of identifying and qualifying the companies that they source from,” said Channelnomics CEO Larry Walsh. He emphasized the need for a “business case” for sustainability and said that, going forward, Channelnomics hopes to define that conversation in the context of the channel, helping to build programs that will have a material impact on sustainability and the environment.

To end the call, Walsh reminded participants that CiQ is fueled by requests for information and guidance. He encouraged members to check out new and upcoming content at the CiQ portal.

TOOL/RESOURCE – A One-Stop Shop for Info & Insights (Available Now): Calling all MSPs, resellers, systems integrators, and other channel partners to check out our well-rounded list of resources – media sites, conferences, podcasts, communities, trade associations, and influencers.

ANALYST NOTE – The Changing Face of the Channel (Available Now): This piece examines some of the drivers behind the recent spate of executive reassignments in tech. Whether because of the Great Resignation, demographic turnover, restlessness born of the stock market and housing booms, or the changing nature of channel leaders’ role, execs seem eager to make a switch.

NEWS ARTICLE – IDC: Spending on AI Solutions Set to Climb Nearly 20% in 2022: Based on information from the most recent release of its Worldwide Semiannual Artificial Intelligence Tracker, IDC anticipates significant growth ahead for the AI market, including software, hardware, and services. Fueled by digital transformation, the AI space is expected to break $500 billion in 2023 as AI becomes the key driver of IT investment.

PRIMERS
-Distribution’s Role in Service Delivery (Available Now): Futurists and pundits have long predicted the disintermediation of distribution as more technologies are sold online through marketplaces and e-commerce. But distributors continue to stay one step ahead of the trends, investing in platforms that facilitate cloud and managed services sold and supported by partners to offset the decline in traditional fulfillment and credit/financing functions. In this primer, we provide a summary of how distributors are adapting to service-based models.
-Crossing the X-Chasm (Available in early March): Transitioning to subscriptions is an immense undertaking for the channel that involves deep operational, organizational, and financial challenges. Organizations making the switch must navigate their way through a tough period when revenue from traditional sources often drops precipitously before revenue from new streams replaces it – the so-called X-Chasm. This primer examines the X-Chasm in depth, including what conditions create it, which companies experience it, and what must be done to pass through it.
-Mergers & Acquisitions (Available in mid-March): Merging channels is one of the most complex aspects of company integration, creating thorny challenges for channel partners that are forced to reconcile the intricacies of two or more disparate programs. This Channelnomics primer will provide insights into how to manage a channel M&A transition efficiently and effectively, getting the most out of the combined channels with minimal hassle for everyone involved.