2023 will see a rapid acceleration of channel businesses selling bundled technology as-a-service packages, containing hardware, software and services in one. Due to the current economic pressures, it makes the case for converting technology investments into an operational, rather than a capital expense.
We expect to see these as-a-service packages becoming more varied as customers look to combine hardware, software, peripherals, accessories and services into one subscription payment. Customers are looking for how technology can flex with their financial performance and provide some future proofing against economic uncertainty. Not only that, as more businesses aim to become net zero, as-a-service packages will be key to help them achieve this goal.
For the channel to respond to this demand it will become even more critical that they have access to platforms that simplify the process of building these packages and are backed by an array of robust alternative payment solutions.
Customers must be the central focus for all solutions and bundles
Digitalisation of tools and automating processes should also be combined with the right people-driven focus. Therefore, it is key to provide the right solution to solve challenges and pain points end users have.
Organisations have sought to create the best offerings for their customers, but end users must be given the right tools and guidance to use these. Partners have a role here to provide an additional layer of support to ensure that their end users understand how to use these new tools and offerings, what to use the additional tools for, and overall, how can end users benefit from using this.
Future will be as-a-service
Simplicity, predictable cost and increased convenience is key for end users and channel partners alike. All businesses no matter their size will be looking to be more customer-focused in 2023, combining their hardware, software and service offering will be the route to go. This will streamline customer service operations as customers will be able to access what they need at the same time.
2023 will see a change in how devices will be sold. Businesses will move away from the traditional ways of purchasing technology, and instead move to new sustainable consumption models. In recent years there has been an increase in the number of organisations using an as-a-service model. Currently, services (managed/professional/packaged) accounts for 45% of partner revenue today, according to research from TD SYNNEX in collaboration with Canalys.
Through these sustainable as-a-service models, vendors will sell their endpoint devices via a monthly subscription. At the end of the programme, customers can return their devices back to the vendor, which stops the need to store depreciating assets for long periods of time and stops the improper disposal of these devices. Once these devices are returned, they will get a second lease of life through the circular economy. At the same time, partners can benefit from an additional revenue stream, increasing their profits.
The tech-as-a-service solution creates a new opportunity for the channel to develop their current operations into one which provides a monthly subscription model. As customers are frequently requesting flexible consumption models and preferred pricing, 32 percent of partners expect to offer global as-a-service capabilities within the next 24 months. At the same time, organisations are able to modernise and refresh their businesses and existing technology. This also improves customer service for their end users.
However, business, partners and vendors must work to fill in the gaps in their transformation plans to make the as-a-service subscription model a reality. Yet, for many organisations, plans are in the works to support business processes in an automated way, 2023 will see this in reality.
2022 has been a year of innovation for organisations and 2023 is set to be more customer-focused driven, with streamlined customer experiences. Here, businesses will sell their devices in an as-a-service way, moving away from traditional methods of sales. 2023 will be a year of transformation and innovation for businesses and their customers.
Article submitted by Dirk De Wolf, Senior Director Customer Solutions — Services Europe, TD SYNNEX
