Security is considered the sector with the highest revenues and profit margins for technology solution distribution channels in Latin America. Therefore, channels in the region will focus on expanding their service offerings. A total of 47% of the companies foresee growing more than 10% per year.
TD Synnex presented its study Technology Ecosystem Benchmark Report, which analyzes the investment in distribution and sales prospects. As far as Latin America is concerned, the numbers are worth noting.
The distribution channels of technological solutions in this region consider that the area of security solutions was the one that contributed the highest income (32%) and profit margins (29%) in recent months, according to the research.
Of the companies surveyed, 47% reported that in 2022 they had more than 10% growth compared to the previous year.
Otavio Lazarini, Senior VP, TD SYNNEX LATAM and the Caribbean, said: “The carried out for TD SYNNEX shows very clearly how the IT distribution channel in Latin America seeks to transform itself to help its clients adopt new technologies that will result in better connectivity, efficiency and security.”
A dynamic market
Lazarini added: “Due to increased interconnectedness in the global technology ecosystem, we are witnessing a rapid and robust Digital Transformation. Our goal in conducting this study is to provide insights into market trends and highlight opportunities for the IT channel and manufacturer community. We believe this report will help understand the direction companies and users are taking to inform investment strategies.”
Conducted in collaboration with technology market analyst Canalys, the TD SYNNEX Ecosystem Benchmark Study underscores the links among all companies in the global technology ecosystem. This study is based on a worldwide survey of technology companies with fewer than 1,000 people.
Regarding infrastructure, 68% of the distribution channels consider that the sector with the highest revenue for them is networking solutions. 29% attribute the highest profit margins to security solutions, coinciding with the fact that 50% have responded that this area has the most significant customer demand, followed by cloud implementation solutions with 34%. Migration to the cloud will be the solution the channels will offer the most in the next 24 months to their customers (32%).
The distribution channels surveyed commented that the flexibility of payments (74%) and credit and financing (62%) would be fundamental in the coming years to achieve business, as well as the offer of preferential prices and leasing.
Finally, the channels commented that of 100% of their business, the sale of hardware is the most important, representing 40%, followed by the sale of services at 36% and software at 22%.
New scenarios dominated by services
However, while hardware sales continue to be very important and represent 40% of sales, channels in Latin America are betting on professional services and managed IT services. The channels remain optimistic regarding the sale of hardware, although 41% believe it may decrease.
But the sale of hardware will have variations, deviations and innovations that will drive the market into new spaces.
The study defines them as follows:
- ‘Device as a Service’ indicates consumption-based endpoints and subscription solutions
- ‘IoT’ describes endpoints that collect data
- ‘Servers and storage’ are the endpoint containers that store and protect data located in data centers and enable cloud information management
- ‘Networks’ connecting the endpoints
According to the study, the ones that generated the highest income are the deployment of networks, with more than 75% of revenues, in clients. In contrast, deploying security solutions has generated the most significant benefits, with margins of more than 25% on average.
A total of 71% of companies consider that the sale of professional services will significantly grow in the next three years.
One of the critical challenges the sector will face is acquiring the necessary talent to drive growth. 59% of respondents mentioned that recruiting and retaining talent is one of the top three challenges they will face in the next 36 months, followed by increased competition and pressure on margins (41%).
As a summary of the study, these essential elements can highlight in the technological mix in the coming years:
- Technology solutions: Cloud coverage is in the long-term forecast
- Business solutions: Services will dominate the market
- Business investments: TD Synnex partners will invest in raising awareness of the use and application of ICT
- Business challenges: ESG can be a high-impact solution to business challenges, although it needs further attention
- Emerging technology: The Metaverse is very hard to ignore
- Collaboration in the ecosystem: Do not act alone when entering new vertical markets
- Evolution of endpoints: redefinition, variation and extension of the network endpoints
About TD SYNNEX
TD SYNNEX is a leading global distributor and aggregator of solutions for the IT ecosystem. As an innovation partner, it helps more than 150,000 customers in more than 100 countries maximize the value of technology investment, demonstrate business results and unlock growth opportunities.
Headquartered in Clearwater, Florida and Fremont, California, the 22,000 TD SYNNEX workers focus on bringing together compelling IT products, services and solutions from over 1,500 top-tier technology providers.
And its edge-to-cloud portfolio is anchored in some of the fastest-growing technology segments, including cloud, cybersecurity, Big Data/Analytics, IoT, mobility and everything-as-a-service.Click below to share this article