Canalys: Cybersecurity Market Grows Despite Weakening Economy
The worldwide cybersecurity market grew 15.9% year on year in Q3 2022, to US$17.8 billion, despite deteriorating economic conditions, though vendors saw a tightening in the SMB sector.
That’s according to Canalys, a prominent market research organization, which also reports that endpoint security was the fastest-growing category, up 18.7% year on year at US$2.7 billion. Network security was the largest category, representing US$5.1 billion and growing 14.8%.
Palo Alto Networks was the number one vendor in the quarter, growing 24.9% year on year and increasing its market share to 8.4%, up from 7.8% in Q3 2021. Cisco was the second-largest cybersecurity vendor, with growth of 16.7% and a flat market share of 6.9%. Fortinet placed third, achieving growth of 29.9% to reach a 6.7% market share, up from 6.0% a year ago.
The technology sector faces deteriorating economic conditions, increasing uncertainty and greater scrutiny of IT spending, according to the report. Declines in new business, reductions in spending commitments and delays to subscription start dates were worse than expected.
“Many cybersecurity vendors have shifted toward subscription-led business models, which also helped to shield them from the immediate impact of the economic slowdown,” said Matthew Ball, Chief Analyst at Canalys. “The move to subscription-based platforms and increased focus on upselling existing accounts will sustain revenue growth for cybersecurity vendors over the next 12 months.”
Channel sales accounted for 90.6% of the overall market, with the other 9.4% of sales done directly with customers. Channel sales grew by 15.9% year on year, outpacing direct sales.
Channel partners remained optimistic about the opportunities in cybersecurity. 27% expected their cybersecurity revenue to grow by more than 20% in 2023, according to a Canalys poll of 393 respondents taken between 21 November 2022 and 9 December 2022. Another 27% anticipated growth of 11% to 20% next year. Only 10% of partners expected cybersecurity sales to decline.
Cybersecurity appears to be a tech sector that is more immune to economic waves than other tech sectors.
IBM Launches Partner Plus
IBM has rolled out “Partner Plus,” a new program that promises to reimagine how IBM engages with its business partners. The program is expected to fuel growth for new and existing partners, including resellers, hyperscalers, technology providers, independent software vendors and systems integrators, by providing increased access to IBM resources, incentives, and tailored support to deepen their technical expertise and help speed time to market. The new program is central to the company’s Hybrid Cloud and AI strategy and aims to empower partners to help clients automate, secure, and modernize their businesses.
By growing technical expertise and demonstrating sales success, participants can progress to three tiers – Silver, Gold, and Platinum – which unlock specialized financial, go-to-market support and education benefits. In the new program, badging will become the standardized measure of skills and validated solutions will demonstrate expertise. The enhanced IBM Partner Portal consolidates and tracks all expertise, revenue and deals globally, offering each partner a clear line-of-site into their progression through the program.
“IBM Partner Plus introduces a new way for IBM to deliver value to new and existing partners by helping them gain skills, grow faster and earn more,” said Kate Woolley, General Manager, IBM Ecosystem. “We’ve heard from partners that they want a simplified experience that helps them win with clients. I’m confident these changes and our continued investment in our ecosystem will make IBM the partner of choice across the industry, and together we can drive growth for partners, clients, and IBM.”
The IBM Partner Portal gives partners real-time visibility into the incentives they are eligible for, predictability into potential earnings and includes an automated deal share engine that helps them surface quality leads. Additionally, access to IBM’s seller tools can help them generate competitive and transparent pricing. Partners can also attend IBM’s quarterly Sales Kickoffs together with IBM sellers and participate in live training sessions and other global technical advocacy events to help upskill and engage with technical experts. For new partners, IBM is launching the IBM New Partner Accelerator, which provides onboarding, training, and other benefits during their first six months in the program to help accelerate profitability.
Enhanced incentives, access and support are expected to help both new and existing partners generate new clients.
TD Synnex Expands Google Cloud Offering
TD Synnex has announced today its expansion to Google Cloud in nearly 60 additional countries.
“This is a tremendous opportunity to build on our global partnership with Google Cloud and expand our relationship to better serve these international markets, some of which did not have access to our solutions,” said Chief Strategy Officer Sergio Farache. “TD Synnex has seen significant growth opportunities in these markets with our hyperscaler relationships, and expanding our availability to Google Cloud in these countries allows us to provide excellent scalability and services to meet existing needs.”
Last May, the Fremont, California-based distributor announced the initial expansion of its cloud solution portfolio with the addition of Google Cloud capabilities, providing users with a suite of cloud computing services businesses can use to enhance productivity and workflow. This new announcement provides users in nearly 60 additional markets with greater access to offerings that can be implemented with Google Cloud’s capabilities in artificial intelligence (AI), machine learning (ML), data analytics, infrastructure, and collaboration.
“With more businesses around the globe moving along their digital transformation journeys, partners with knowledge and expertise in Google Cloud technologies play a key role in these companies’ successful migration to the cloud,” said Eric Buck, director of commercial partners and global distribution, Google Cloud. “By expanding its global support of Google Cloud offerings, TD Synnex is providing more organizations with greater access to the cloud experts and technologies they need to drive positive business outcomes in the cloud.”
TD Synnex also offers resources to support organizations in building cloud practices and delivering cloud offerings including Cloud Practice Builder programs, Rapid Risk Security Assessments, Google Cloud Migration Assessments, and a roster of professional and managed services.
Expanded cloud capabilities provide scalability and offerings throughout United States, Latin America, Europe, and Asia