The overall IT market continues to grapple with disruptive and evolutionary forces. Many hardware and software vendors are struggling to replace commoditized-product revenue with that generated by services and the cloud. Some vendors are seeing their fortunes decline because their next-generation cloud products and services haven’t attained critical mass in the market.
Solution providers, too, are grappling with these forces, but seem to have found the right balance. Most of the companies in our 2015 Midyear Channel Performance Report identify as managed service providers (MSPs). Their growth is a result of high-touch interactions with customers, which lead to expanded engagements resulting in recurring and compound revenue.
Economic uncertainty and gloom haven’t permeated the IT channel, where solution providers of all stripes are reporting strong first-half and second-half sales for 2015. Even better, the vast majority of solution providers say sales cycles are getting shorter and average sales values are increasing. While vendors are tested by the decelerating market, solution providers say they’re challenged by the increasing demand for goods and services they offer.
In this report, 2112 details its findings from the 2015 Midyear Channel Performance study including some of the following highlights.
- Nearly one-half of solution providers say average deal values are increasing compared to 2014
- Two-thirds of solution providers say their first-half sales pace is ahead of the same period in 2014
- Seven out of 10 solution providers expect 2015 profits to increase at least 6 percent over 2014
- Three-quarters of solution providers expect full-year 2015 sales to increase at least 6 percent; with one in four solution providers forecasting sales growth to increase at least 15 percent.