For distributors facing an evolving channel ecosystem, harnessing the power of data represents a formidable challenge and a significant opportunity. While tech companies now have unprecedented access to vast amounts of data, transforming this wealth of information into actionable insights can be overwhelming. For companies operating within the IT channel, the struggle is just as real.
At Westcon-Comstor, we recognise the critical role data plays in the IT channel, driving the adoption and scaling of the latest products and solutions from leading software vendors. Our recent survey “Bridging the Gap: Power Up Your Data for Channel Partner Transformation”, conducted in collaboration with Coleman Parkes, sheds light on the challenges and opportunities associated with data utilisation within the IT channel across nine countries, including Kenya, Nigeria, and South Africa.
The Data Paradox: Challenge and Opportunity
Our findings, detailed in the "Bridging the Gap" report, reveal that handling diverse data types is the biggest practical challenge for channel companies. Many acknowledge the need to enhance their internal capabilities to utilise data effectively for lifecycle selling, cross-sell, and upsell opportunities. The paradox lies in the fact that while data presents significant challenges, it also offers the greatest opportunities for transformation.
Transitioning from one-time hardware sales to recurring revenue models based on software services and subscriptions is a critical goal for many channel partners. In this journey, data plays a pivotal role. In Africa, 100% of respondents view data as essential in their transition to an everything-as-a-service (XaaS) future, compared to a global average of 97%.
Overcoming Obstacles
Access to the right data is a major obstacle in the pursuit of recurring revenues. In South Africa, 54% of respondents identified this as a challenge. There's a strong demand across the region for data that can identify and enable market growth opportunities.
Encouragingly, nearly all South African respondents (99%) have identified data capabilities as a key investment priority for the coming year, illustrating a robust commitment to enhancing data capabilities despite the challenges. Additionally, 71% of South African businesses reported having an in-house data and analytics function, which, while lower than the global average, still represents a solid foundation for future growth.
Embedding a Data-Driven Approach
Our research highlights that while many partners see data as central to their transition to recurring revenue models, practical challenges around data access and utilisation persist. However, the desire to enhance data capabilities and embed a data-driven approach is strong across the continent. Two-thirds of surveyed partners in Africa (66%) believe that the future of technology distribution lies in providing meaningful customer and market insights.
The Bigger Picture: Impact on Economy and Society
The implications of harnessing data extend beyond the IT channel to the broader tech and business landscape in Africa. Channel companies play a crucial role in bringing new technologies in cybersecurity, networking, and the cloud to a wider audience, driving innovation and, ultimately, economic and social progress.
At Westcon-Comstor, we are committed to equipping IT channel companies with the data and analytics tools they need to seize new growth opportunities and transition to a subscription-based future. By doing so, we believe we can help unlock significant economic and social benefits across the continent.
The journey to unleashing the full potential of data is fraught with challenges, but the opportunities it presents are too significant to ignore. By investing in data capabilities and adopting a data-driven approach, the IT channel in Southern Africa can not only drive business growth but also contribute to broader economic and societal advancements.
