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Canalys: Hardware will contribute over 50 Percent to Channel Revenues by 2020

The channel-focused analyst firm Canalys has predicted that hardware will contribute over 50 percent of the revenues for almost 90 percent of partners in 2020.

While kicking off the Canalys Channels Forum 2017 in Perth, Australia, Steve Brazier, President and CEO, Canalys, said that APAC channel partners will grow at least 10 percent per annum over the next three years, and storage and security will rule the channel business.

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“Obviously this varies a bit by country but your business plans need to be optimistic. If you are growing at less than this, you are missing out to your competitors,” he said.

While there is a perception that partners should be more focused on services and avoid investment in hardware within the channel, Brazier says this is inconsistent with the current state of the market and its immediate forecast. “Whoever told you to stop focusing on hardware was wrong,” Brazier said.

Canalys expects a boom in edge computing, as local processing power increases at the fringes of the network to support the computing firepower in the cloud. “The ability to process multiple data sources at high speed close to the source of the data will go up and up,” said Brazier.

He added that organizations are undergoing massive digital transformation, which offers a great opportunity for channels. Brazier highlighted that governments are promoting the transformation with their digital initiatives. He bolstered his point by citing an example of demonetization in India, which has increased the prominence of online payment systems in India.

“We will see the emergence of micro-solutions that combine sensors, analytics and machine learning that are rugged, heat-resistant, water resistant and portable to create a new form of computing,” said Brazier.

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