Digital transformation offers huge growth opportunities for the channel in 2019. But recent events have also highlighted the importance of secure digital solutions, with over 59,000 breach reports already submitted to GDPR regulators since May 2018. This bears out some of the key predictions for the industry made in a new report from CONTEXT. With the right market intelligence to hand, channel bosses should be well positioned to navigate the challenges that come their way this year.
Securing digital growth
In our Technology and Channel Predictions 2019 report we point to the secure management of data as a key driver of channel growth in the digital transformation push. New stats from DLA Piper released last week confirm exactly this: that organisations are now much more aware of data security. The law firm claimed there has been an average of over 7300 breach reports each month since the legislation was introduced.
Another new report, from Thales eSecurity, reveals not only that organisations are motoring ahead with their digital transformation plans, but that they are struggling to contain the increased cyber risk that these projects are exposing them to. Complexity — for example in managing multiple cloud environments — was highlighted as the top barrier to data security. This is where channel partners can offer a real value-add, in helping their customers embrace innovation-fuelled growth but in a secure and compliant manner.
Some industry watchers, like Accenture, even believe that we’re now entering a “post-digital” world, where success will increasingly be defined by how innovatively organisations can apply technologies like AI, distributed ledgers and even quantum computing. The consultancy’s new report also highlights the importance of cyber security to the success of projects.
Brexit and beyond
As we mention in our predictions report, Brexit is the great imponderable for 2019. As I write this, the British government still seems a long way off providing the kind of orderly departure from the EU which businesses crave. As we warn in the report, a no-deal exit would cause a serious impact on trade between the UK and EU, forcing the former onto WTO tariffs and no doubt resulting in a major drop in the value of the pound. That’s why distributors on both sides of the channel who rely on cross-border supplies should have a contingency plan in place including enough stock to cover any initial period of disruption.
One distributor heeding this advice appears to be Westcoast, which recently told CRN that it had bought 3,000 extra pallet locations in two storage warehouses to stockpile a “large amount” of product. However, MD Alex Tatham appeared less than convinced about the preparedness levels in other parts of the channel. “It is amazing how many vendors have not got their own Brexit strategy organised — they haven’t woken up yet,” he’s reported as saying.
It goes without saying that Brexit isn’t the only challenge facing channel players in 2019. But although year-on-year growth in distribution won’t match last year’s 6.7%, we’ll still see positive growth for the year ahead. By tapping secure digital transformation and Industry 4.0 trends effectively, firms stand a great chance of weathering the Brexit storm and other factors like slowing demand in EU economies.
by Adam Simon