- February 15, 2023
- Posted by: Lawrence Walsh
- Category: Press Releases
Examines impact of unprecedented upheaval on vendor and partner performance and strategic outlook
PORT WASHINGTON, N.Y., Feb. 15, 2023 — A new report from Channelnomics highlights the ways technology vendors and channel partners are conserving resources and optimizing operations in response to rapidly changing market conditions.
In the 2023 Channel Forecast report, Channelnomics examines budget targets, investment priorities, and external pressures prompting vendors and channel partners to reconsider existing go-to-market strategies and resource allocation. The report concludes that the spoils of a new channel order will go to organizations that are best able to cope with lower budgets and leaner programs.
“Over the past three years, during a period of unprecedented upheaval spawned by a deadly global pandemic and corresponding increases in geopolitical and economic turmoil, channel priorities have shifted,” said Channelnomics founder and CEO Lawrence M. Walsh. “Tech organizations are now embracing conservation and optimization as a means of maximizing growth.”
To that end, nearly half of tech vendors (49%) are revamping their channel programs and strategies. They’re focusing resources on a smaller cadre of higher-performing partners, paring down their partner programs, investing heavily in partner management automation, and shoring up rickety supply chains.
Partners, meanwhile, have continued with their efforts to increase recurring revenue by accelerating their expansion into cloud and managed services. In 2023, a majority of partners plan to invest in new or existing managed services (69%), partner with service providers to deliver cloud or application services (69%), expand the marketing of existing products and services (68%), and increase their professional service capabilities and capacity (65%).
Additional highlights from the 2023 Channel Forecast report include:
- The share of vendors expecting meaningful yearly revenue growth of more than 5% is at a four-year high.
- Vendors are more bullish about near-term growth than channel partners, a switch from 2022.
- For the first time since 2020, the percentage of vendors that have reduced their budgets (16%) or left them unchanged (45%) is greater than the percentage that have increased them (39%).
The new Channel Forecast combines data previously found in our Channel Forecast and Channel Chief Outlook reports, offering the most comprehensive view of the channel from the perspective of both vendor channel chiefs and partners.
A copy of the report is available at the Channelnomics Library, a repository of downloadable content at channelnomics.com.
We believe exceptional insights enable channel professionals to turn vision into reality. Channelnomics is a business strategy and research firm focused on connecting channel professionals with the people and insights that enable them to continually evolve and operationalize their strategy.
Our industry experts work with clients to provide the evidence they need to validate and structure their strategy. Our clients, in turn, benefit from improved GTM performance, faster time to market, and better return on partner relationships.
By looking at the technology marketing from the viewpoint of vendors, partners, and end users, Channelnomics is uniquely positioned to develop route-to-market strategies with an innovative, insightful, and inspired flair.