Monday Morning Impact – January 20
Canalys: US PC market forecast to grow 2% in 2025
New research from Canalys shows that PC shipments (excluding tablets) to the United States grew 7% year-on-year to 17.9 million units in Q3 2024. Notebooks drove this growth, with shipments up 9% annually. Looking ahead, Canalys expects the US PC market recovery to continue, but at a slower rate than previously anticipated, due to weaker momentum in the Windows refresh cycle and headwinds related to macroeconomic policies. Total PC shipments to the US are expected to rise 6% to just under 70 million units in 2024 followed by modest 2% growth in both 2025 and 2026. Commercial demand remained strong in the second half of 2024 with the segment seeing 12% shipment growth in Q3.
“While growth earlier in the year was bolstered by consumer purchases, the commercial market has become the leading segment for PCs in the US,” said Canalys Analyst Greg Davis. “Both large and small businesses have begun exhibiting stronger refreshes of their PC fleets with Windows 11 devices as we entered the second half of the year.”
While Microsoft and its partners will work to improve the overall awareness of the Windows 10 end-of-life throughout 2025, Canalys expects a sizable portion of fleet refreshes will happen after the end of service date. This is due to the relatively modest pace of the transition so far, especially given that a large portion of the current installed base remains on Windows 10 just 10 months out from the October 2025 deadline.
PC market expectations for 2025 onwards have also been tempered due to anticipated policy changes by the incoming administration.
“With the 2024 US Presidential election coming to a close, macroeconomic conditions in the US are not expected to be as stable in the near-term as they have been over the last year or two,” continued Davis. “With reports of import tariffs seemingly on the horizon, the PC market will likely be impacted in a noticeable way.” A study by the Consumer Technology Association (CTA) suggests that device prices could rise as much as 46% because of the proposed tariffs, which would add significant downside risk to the forecast. Signals from the supply chain suggest there will be some stockpiling of inventory in early 2025 to get ahead of the anticipated rise in prices, leading to rebalancing of the shipment seasonality next year.
“A longer-term risk factor stems from the proposed public sector budget cuts, both for federal government and education procurement of PCs,” added Davis. “Although 2025 budgets will remain largely intact, we anticipate future spending on technology from these areas could be reduced.”
Channel Impact®
The data reflect a cautious optimism widely reported in the IT channel.
Veracode Acquires Technology from Phylum, Inc. to Support Supply Chain Security
Veracode, a Burlington, Massachusetts-based company specializing in application risk management, has acquired certain assets of Phylum, Inc., including its malicious package analysis, detection, and mitigation technology. The acquisition is intended to enhance Veracode’s ability to identify and block malicious code in open-source libraries, thereby giving customers a more comprehensive view of risks associated with open-source code usage.
Leveraging the Phylum malicious code analysis technology, Veracode hopes to significantly shorten the window of opportunity for attackers. Newly published packages are analyzed within seconds, helping customers proactively prevent attacks. Phylum’s recent research identified nearly half a million malicious packages, including 2,500 targeted malware campaigns aimed at industries like finance and cryptocurrency, demonstrating the scale and sophistication of these threats.
“This acquisition advances Veracode’s mission to be the most comprehensive application risk management platform by significantly expanding our ability to identify, mitigate, and remediate risks across the software supply chain,” said Ravi Iyer, Chief Product Officer at Veracode. “With Phylum’s unmatched database and cutting-edge research—proven to detect 60 percent more malicious packages than any other vendor—our customers will gain the confidence to innovate faster, knowing their software is protected against evolving threats.”
“Uniting Veracode’s platform and Phylum’s malicious package detection and mitigation technology creates exceptional value for our customers worldwide,” said Aaron Bray, CEO & Co-founder of Phylum, Inc. “By combining our advanced research capabilities with Veracode’s industry-leading platform, we’re expanding the fight against software supply chain threats. Together, we will deliver even greater protection and peace of mind to organizations navigating an increasingly complex threat landscape, and we are excited to join the team.”
Phylum’s technology is expected to be integrated into Veracode’s SCA product, with general availability expected early this year.
Channel Impact®
This acquisition of the Phylum technology is expected to augment Veracode’s application risk management platform by significantly expanding the ability to identify, mitigate, and remediate risks.
WWT to acquire Softchoice
World Wide Technology (WWT) has announced an agreement for the acquisition of Softchoice Corporation in an all-cash transaction valued at approximately $1.25 billion.
WWT is a global technology solutions provider focused on AI and digital transformation. The company claims $20 billion in annual revenue with nearly 10,000 employees and more than 55 locations around the world. Softchoice Corporation is a software and cloud-focused IT solutions provider that delivers AI-powered cloud and digital workplace solutions supported by a proprietary asset management methodology.
“We are excited to join WWT,” said Softchoice president and CEO Andrew Caprara. “Its scale and global reach, customer base of large organizations, and industry leading infrastructure solutions are a perfect complement to our software and cloud focused solutions, our Canadian presence, and our strength in the North American mid-market.”
“Softchoice has been a transformative player in the IT industry for over 35 years, and adding its complementary software, cloud, cybersecurity and AI capabilities to WWT’s portfolio will enable us to create even greater value for our clients striving to achieve their digital transformation goals,” said WWT CEO Jim Kavanaugh.
The acquisition is expected to close in late Q1 or early Q2 2025, pending regulatory approvals.
Channel Impact®
The acquisition will add new capabilities to WWT’s software, cloud, cybersecurity, and AI offerings to provide a comprehensive solutions portfolio across the full spectrum of the digital transformation journey. The move is also expected to strengthen WWT’s access to small and medium business customers while expanding WWT’s position in the U.S., and Canada.
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