Image created using ChatGPT and DALL-E by OpenAI
At the end of each year, individuals and organizations often make their bold predictions for the year ahead. But how many of those articles react to and follow through with what they predicted?
We’re not exempt from these prediction articles; near the end of last year, we made 5 tech predictions for the new year:
- AI Will Accelerate Productivity and Efficiency Even More Than Expectations
- IT Selling Models Will Evolve to Incorporate More Services
- Blockchain Technology Will (Re)Rise with Increased Attention on Cybersecurity
- Election Year Presents Opportunities in the Public Sector and Other Markets
- The Endpoint Device and Accessories Market Has a Reason to Rebound
Now that we are a little more than halfway through 2024, we put those predictions under the microscope. We asked a few of our 14 TD SYNNEX leaders named to the prestigious CRN® Channel Chiefs list to weigh in on just how accurate we were with our expectations.
Where We Hit the Nail on the Head: Doubling Down on AI’s Rapid Adoption
Several trends were noted as being spot-on, most notably around our prediction that AI will accelerate efficiency even more than expectations. From enterprise applications to personal use of generative AI tools, AI has – and will continue to – play an integral role in the future of the IT ecosystem and how we navigate our day-to-day responsibilities.
AI is absolutely driving productivity and efficiency gains both for the market and myself personally. We continue to see the evolution of RPA and AI to automate routine tasks and create incremental capacity for workers while also reducing human error in those tasks.
– Marc McClure, Senior Vice President, Enterprise and Mid-Market Sales
AI is continuing to accelerate in more ways than one, especially as it pertains to productivity and efficiencies: using generative AI in business improves users’ performance by 66%.
– Jessica McDowell, Senior Vice President, High-Growth Technologies
We have seen large adoption of Generative AI tools, which has enabled significant productivity gains, more creative ways to retrieve and position information and respond efficiently. There’s an increased acceleration in demand for new AI services and solutions that speeds time to market for new and emerging offerings.
– Jessica Yeck, Senior Vice President, Vendor Solutions
AI continues to fuel productivity, and the demand for digital transformation remains strong. AI is impacting the consumer and employee experience; by automating routine tasks and providing advanced data analytics, AI allows employees to focus more on more strategic activities, enhancing the overall quality of their work.
– Lisa McGarvey, Vice President, Data, AI & IoT, Vertical Markets, and Alliances
Most of those that we talked to agreed that we could double down on that prediction moving forward, and that we are seeing tangible efficiency benefits from the implementation of generative AI tools.
As for where to double down? AI, all day long, as it represents the potential to fundamentally transform not just what we do, but how we do it. AI will usher in an era of innovation never before known to mankind.
– Marc
Moving forward I would double down on AI, specifically Generative AI in horizontal areas, as we start to see very focused projects emerge that automate activities, increase margin and provide better productivity in the areas of sales and marketing.
– Lisa
Conversation is powerfully human, but research suggests that in under five years, conversational AI will improve significantly making it one of the next big things with AI. While the benefits of NLP vary, such as cost efficiencies and scalability, the expansion opens up the further need to integrate a security overlay.
– Jessica M.
On Track: A Re-Focus on Services in 2024
One of our predictions was centered around the evolution of IT selling models to include more IT services. We are witnessing a tangible transition in how the channel approaches IT solutions, understanding that the selling of product lifecycle services helps partners meet evolving market demands.
The channel can help to deliver and implement services to support the development of AI tools for auditing and accountability, as well as a huge opportunity to help customers manage and put structure and control around security and data that is being shared in applications.
– Lisa
It’s as important for companies to have a services strategy as it is for them to have an AI strategy. Whether it’s offering these services in house and/or leveraging a solutions aggregator (like TD SYNNEX) to help quickly bring offerings to market, the channel should be prepared to support evolving customer types and the IT landscape.
– Jessica Y.
IT selling models continue to evolve to incorporate more services as partners seek to offset margin dilution, improve enterprise value and quality of revenue, while driving more entangled relationships through service led engagements. MSP’s continue to leverage product-led sale motions as a feeder system to their services, and larger partners are building consultative practices to drive better adoption of next generation technologies.
– Marc
Financial Services is not slowing down. TD SYNNEX Capital continues to see strong interest again this year. I think this is driven mostly by our strategy to closely align to the commercial teams, our flexibility, and the tightening of available players in the market.
– Wayne Peters, Vice President, Global Financial Solutions
To better understand the breadth of how TD SYNNEX is enhancing our partners’ IT services capability and portfolio, we recently conducted a Q+A with some of our top services experts from around the world.
Emergence of AI PCs Positively Impacts Endpoint Market
Also among our predictions was the expected rebound of the endpoint device and accessories market. After a surge during the pandemic, the device market saw a decline in 2023, but the rise in AI PC demand has put the device market back on track.
We continue to see the opportunity for IoT endpoint devices. IoT and AI really enhance each others’ capabilities, and we need AI to analyze the data from the devices and sensors, which allows for the extraction of insights, the ability to identify patterns and ultimately make predictions: IoT provides the data and connectivity and AI provides the intelligence.
– Lisa
Endpoint devices and accessories have strong reasons to rebound. One of the largest reasons is heavily motivated by the rise of AI PC’s, adaptations to hybrid workforce strategies, as well as asset depreciations schedules in a post covid world.
– Marc
Many enterprise customers are waiting to see how embedded AI devices play out, which makes me think that rather than a 2H boost, we may see the device refresh push to Q1 2025, but it will come.
– Wayne
The impact of AI on the PC, IoT and endpoint industries will be profound, with all major vendors focused on delivering AI-capable models in 2024 and beyond. According to IDC, Investments in the IoT ecosystem are expected to surpass $1 trillion globally in 2026 with a compound annual growth rate (CAGR) of 10.4%. This is the channels’ opportunity to support digital transformation and industry 4.0 thru the integration of digital technologies, leveraging smart technologies, automation, as well as AI & Data allowing companies to become more agile, efficient and supporting their customer needs and demands.
Emerging Trends That Have Unfolded in 2024
- Building trust through being human
With the rise in AI adoption, there’s an increased importance in the market on trust and authenticity. More consumers want to see real-life experiences from organizations, rather than always painting the perfect utopia.
Tech companies and the customers they sell to need to balance the use of AI for ease of use with consumers, but not lose sight of the overall relationship and connection. For the IT ecosystem, this means providing comprehensive case studies and showcasing the live product demos, creating real-world experiences and solutions that aren’t easily replicated.
– Jessica M.
- The convergence of AI with other high-growth technologies
While standalone AI projects are indeed happening, the real value of AI is how it is woven into other high-growth technology solutions, such as cloud, cybersecurity, IoT and data.
I’ve been pleasantly surprised by the speed in the overall convergence of high growth technology segments and how AI has become a critical thread throughout the solutions stack. As high-growth, next gen technologies evolve, so does the emergence of new solution requirements, new customer types and increased expectations of a simplified user experience.
– Jessica Y.
We are seeing an increase in repatriation of workloads from the cloud to on-prem environments. We are learning more about end customers seeking to move data closer to the applications that will be driving much of their respective AI strategies.
– Marc
IT Spend is being re-allocated to AI projects and we’ll continue to see growth and uplift. We have seen that AI investments and workload deployment really drove infrastructure spend and we saw an upside in the server and infrastructure segment in the first half of 2024 due to accelerated AI initiatives. Server spending continues to be resilient, with a strong AI focus.
– Lisa
- U.S. Public Sector Moves To “Wait-and-See” Mode
While the upcoming U.S. election certainly had the potential to generate IT opportunities for the Public Sector, political uncertainty has slowed down innovation.
I believe the opportunity around the election has been somewhat tempered by continuing resolutions, limiting critical budget increases that are necessary to modernize infrastructure. As a result, a disproportionate amount of the available budget remains focused on maintenance as opposed to innovation.
– Marc
It appears that the political environment around the election will quiet things down in the second half of the year and I don’t expect a boost until after.
– Wayne
In Summary: How Did We Do?
💯 AI Will Accelerate Productivity and Efficiency Even More Than Expectations
✅ IT Selling Models Will Evolve to Incorporate More Services
👍 The Endpoint Device and Accessories Market Has a Reason to Rebound
👌 Blockchain Technology Will (Re)Rise with Increased Attention on Cybersecurity
❌ Election Year Presents Opportunities in the Public Sector and Other Markets
As we reflect on our 2024 predictions, our forecasts for the impact of AI on productivity, the incorporation of more IT services, and the rebound of the endpoint device market have all met and even exceeded expectations. While the re-rise of Blockchain technology remains more of a curiosity than a reality, the attention on cybersecurity and other high-growth technologies have seen strong growth due to its convergence with AI. Lastly, the US public sector has slowed with political uncertainties, but there is certainly opportunity for an uplift in early 2025.
TD SYNNEX continues to enable the partner of the future, one who will need to be skilled at selling AI with other high-growth technologies that ensure a robust portfolio that meets evolving consumer demand. Continue to stay up-to-date with ongoing thought leadership from TD SYNNEX through the rest of 2024 as we prepare for our 2025 predictions by bookmarking our Newsroom, subscribing to our newsletter and following us on LinkedIn and Instagram.
