Channel Growth Outlook Strong, Says 2112 Group

Channel Partners Magazine

While Gartner recently forecast a 5.5 percent drop in IT spending worldwide for 2015, with services spend projected to decline 4.3 percent, U.S. channel companies are beating the numbers. That’s according to a report out Tuesday from The 2112 Group that forecasts “at least” 6 percent growth in the North America IT channel for 2015.

Channel Sales Expectations

“The global IT industry is forecast to contract in 2015 as spending slows, cloud services displace legacy infrastructure and current fluctuations impact budgets,” said Lawrence M. Walsh, CEO and chief analyst of The 2112 Group. “The IT channel – resellers and managed service providers – are increasing their revenue, though, through recurring-revenue services that build up over time. The result is growth even when the rest of the industry is facing a stall.”

“While vendors are struggling to make the transition to cloud services and recurring revenue models, solution providers are capitalizing on their services to off-set declining product sales and margins,” Walsh said. “For solution providers, the 2015 Midyear Channel Performance Report is validation that their services investments are paying off. For vendors, the report is a calling card to devise ways of tapping into partner services and support changing channel economic dynamics.”

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