The sluggish start to 2016 did little to drag down solution providers. Confidence among resellers, managed service providers (MSPs), systems integrators, and other companies in the channel was bolstered by strong growth in 2015. While overall IT spending declined 5.5 percent in 2015, the North America channel improved its sales and revenue by at least 6 percent, with many solution providers posting increases of more than 15 percent.
Data gleaned from 2112’s 2016 Channel Forecast and 2015 Midyear Channel Performance Report shows a distinct trend: Solution providers are running increasingly healthy businesses and are less exposed to economic disruptions. The increasing share of services as a percentage of solution provider revenue is providing insulation against negative market forces.
Heading into 2016, 2112 expects the channel to continue to expand at a consistent low double-digit rate, and average profitability to remain relatively flat. The channel, in aggregate, will grow at least 6 to 10 percent in 2016 under nominal market conditions.
In this report, 2112 details the findings of its 2016 Channel Forecast study, including:
Channel Growth Rates
Business Acumen Levels among Solution Providers
Future Performance Expectations
Chief Indicators for Identifying Partner Development Potential