After making some bold predictions for 2024 (and getting most of them right!), our experts are back at it. As we wrap up 2024 and hurdle toward 2025, the IT channel continues to show unrivaled resilience in our constant change of adaptation. Over the past year, partners in the IT ecosystem have come together more than ever to solve complex challenges, and are embracing partnerships, enablement resources and services so that we can rely on one another.
As we prepare for another year of advancement in hybrid cloud, security, AI and other high-growth technologies, we challenged our experts to look beyond the obvious and provide us with their boldest or most surprising takes on what we can expect in 2025. Five clear trends emerged:
1. AI Deployments and Generative AI Adoption Enters a New Phase: Hype to Tangible Impact
If 2024 was the year of AI experimentation, then 2025 will be the year of meaningful AI impact. Organizations are moving past the proof-of-concept idealization of AI to needing real-world use cases of AI automating workflows, improving user experiences and boosting operational efficiencies.
Generative AI, buoyed by Agent technology, will make significant strides, leading to innovative applications across various industries. Anticipate an increase in major projects initiated by mid-market organizations in mature markets.
– Reza Honarmand, SVP, Global Hybrid Cloud and Transformation
Additionally, generative AI has proven to be a disrupter and has forced organizations to become digital-first. Gen AI, too, will break new ground in 2025, driving real operational value and enabling widespread implementation of AI agents and workflows.
My prediction is that we will see companies, ISV, and the partner communities adopting AI technology via the implementation of use cases with agents, this will provide improvement in operational efficiencies and incremental revenue via sales and UX automation. As many of these agents prove value, a marketplace of agents will take place, giving access to share and buy the templates to deploy this improvement.
– Sergio Farache, Chief Strategy & Technology Officer
Gaining ground in AI can’t be done alone, as Calhoun McKinney reminds us of the dangers of not partnering with organizations that can maximize your investment.
AI projects will falter due to lack of evidence for outcomes driven as a results of hefty investments. [TD SYNNEX] partners with our customers to help deploy AI in a meaningful way to maximize investments and satisfaction.
– Calhoun McKinney, VP, Go-To-Market Strategy
By the end of the year, we expect AI to have transitioned from hype to hands-on impact, changing the way businesses interact, automate and innovate.
2. The Deepening Skills Gap Will Challenge Innovation, but Upskilling Will Be the Solution
While the evolution of gen AI (along with the many other high-growth technologies) may be exciting, it won’t be without its challenges. Organizations are being pushed to the limit to attract top talent while also keeping their workforce trained and equipped with the skills needed to match today’s innovation. As technology accelerates, the need for a skilled workforce becomes more urgent.
The increasing demand for high-growth technologies such as hybrid cloud, security, data analytics, and AI has led to a skills gap arising from their adoption, and our focus is on shortening that gap while simultaneously accelerating IT channel partners’ go-to-market.
There is consistent concern of the skills gap from our partners. While the challenge is in attracting top talent and providing comprehensive training, the opportunity lies in services businesses to bridge that gap for partners.
– Jaideep Malhotra, President, Asia Pacific and Japan
One of the many new skills to emerge recently are AI prompt experts, and those who can push generative AI to achieve optimal, accurate results that will enhance productivity and redefine daily life.
(Translated from Spanish) I think I would stick with what analysts call “Human-machine synergy.” More common interactions between the physical and the virtual with robots in daily life and technologies that impact how we think and how efficient we are.
– Fernando Ayllon Parrilla, VP, Services, Latin America & Caribbean
Reskilling for AI/automation – AI-driven roles and workflows will require new ways of training coworkers.
– Jessica McDowell, SVP, North America Marketing & Digital Customer Success
The concept of continuous learning is one that we see as a key to overcoming the global skills gap, and organizations that have adopted upskilling initiatives and/or have partnered with services businesses to bridge these gaps will gain a competitive edge and face far less risk of falling behind in their digital transformation journey.
3. Flexible Financing, Subscription and Consumption Models Will Become the Standard
Consumption-based financing and as-a-service models will see a surge in 2025, driven by economic pressures and growing demands for flexibility. Channel partners are seeking the most efficient route-to-market, and organizations that support consumption-based financing solutions are the logical stepping stone.
Consumption/subscription models will continue to increase. Use of long-term payment solutions like equipment and software financing will accelerate. Digital platforms will play a bigger role in how partners utilize financial solutions to acquire and sell products.
– Wayne Peters, VP, Global Financial Solutions
Subscription models and flexible financing allows for more channel partners to deploy IT projects at scale.
Anything cloud-related, really, whether that’s kind of as-a-service models or anything transacting through the hyperscalers, security continues to be incredibly strong.
– David Watt, SVP, Regional Managing Director, UK&I via Microscope
Programs like TD SYNNEX Capital enable this financial scalability and the ability to drive growth.
We have invested in new offerings, like TD SYNNEX/Tech Data Capital – flexible financing solutions – to enable partners to adopt new technologies and grow their business swiftly. Based on our research, a majority of APJ partners find financial scalability challenging. However, partners can extend their overall purchasing power through flexible financing programs not usually offered by traditional lenders.
– Jaideep Malhotra
4. The AI PC Device Refresh Super-Cycle Will Redefine Edge Computing
Following the surge BYOD policies during the pandemic, as students moved to virtual classrooms and professionals worked remotely, PC sales spiked. Five years later, 2025 will be the optimal time for a new technology refresh cycle, spurred by AI PCs embedding AI technology directly in PC hardware.
The conversion of Edge, AI, Security and cloud: This year we will see a PC refresh and an AI super-cycle ahead. We expect double-digit CAGR growth expected in both edge devices and AI software.
– Sergio Farache
A key trend that are driving the global technology sector is the opportunity offered by AI. We anticipate positive shifts impacting every segment, from AI-enabled PCs to infrastructure, hybrid cloud, and software.
– Jaideep Malhotra
Additionally, laptops and devices will experience renewed demand due to the push for Microsoft Windows 11 upgrades to support AI capabilities.
Laptop sales will increase given the move to AI embedded, the transition to Microsoft 11, and aged devices in the marketplace.
– Wayne Peters
The long-anticipated AI-enabled PC refresh super-cycle will be significant and is expected to drive positive momentum in the edge device market. These AI PCs will, in turn, unlock greater efficiencies in the channel.
5. Security Becomes the Unshakeable Foundation of All IT Investments
Calhoun McKinney may have said it best: Security will remain the Queen of the IT ecosystem.
Security will be Queen of the IT ecosystem in 2025, however we will see a shift in how security is purchased and consumed. The buying models and expertise needed are heightened. TDS specializes in helping partners navigate these high risk, complex situations.
– Calhoun McKinney
In 2025, security will dominate the IT agenda as the industry continues to combat constantly-evolving cyberthreats. Cybersecurity solutions will be woven into every IT project, which will ensure the safe adoption of advanced technologies like hybrid cloud environments.
Cloud-Native Security: Cloud-native security solutions will be essential to protect against evolving cyber threats in cloud environments.
– Reza Honarmand
Organizations will need to solidify their security posture before fully embracing new AI tools and cloud services. Expect a greater emphasis on managed services to help partners navigate these complexities.
To deploy AI at all, there is a lot of work you have to do around security postures and where your data sits. That’s before you even deploy a Copilot license, or before, if you’re in the enterprise, you start looking at what are the next style products. A big part of our job is enabling the channel in all sorts of different ways. There’s a lot of work going on, loads of interest, but resellers are not necessarily there yet in terms of their own preparedness, and the budgets aren’t necessarily there at end-user level. But I think 2025 will change that.
– David Watts
The future of AI, cloud and digital transformation hinges on an unwavering focus on security.
2025 promises to be another year of transformation, challenges and opportunities. As we navigate the year ahead, we anticipate a strong year of tangible business outcomes through connection and collaboration. As we look ahead to 2025 and beyond, the IT channel will continue to be a driving force in shaping the industry’s trajectory. From the acceleration of hybrid cloud adoption to the explosive growth of cloud marketplaces, the ecosystem is evolving to meet the rising demand for enablement resources, prepackaged solutions, and managed services. With channel partners playing a pivotal role in the majority of IT spending worldwide, the focus on collaboration, innovation, and service-based offerings will redefine success in the year to come.
Thank you, Calhoun, Jaideep, Reza, Wayne, David, Sergio, Fernando, Raffaelo and Jessica for your contributions to this article!
To learn more about the insights from IT channel partners in the year ahead, visit the Direction of Technology report, our annual look at the reflections and predictions of technology resellers.
Bonus: Honorary Mentions
With so many great insights to pull from, we’re sharing some additional favorites:
The IT ecosystem will play a huge role – partners are looking for more than just a cloud marketplace, they’re looking for enablement resources, prepackaged solutions, and managed and professional services. Our strength is in building and playing on ecosystems.
– Jaideep Malhotra
Hybrid cloud adoption will accelerate, with channel partners adept at optimizing workloads across multiple environments leading the growth charge in 2025. Expect double digit growth in this space.
– Reza Honarmand
I think what analysts call “Energy Efficient Computing.” Already today, and I think it will be even more so in 2025, the key factor that IT departments take into account when undertaking a project and/or making an investment or expense is its carbon footprint. It will be a surprisingly key factor when closing a deal.
– Fernando Ayllon Parrilla
Harnessing the power of data – leveraging data intelligence and analytics to drive more lead generation and opportunities for upsell, cross sell, and attach
– Jessica McDowell
