Monday Morning Impact – November 5

Gartner Says Global IT Spending to Grow 3.2 Percent in 2019

Worldwide IT spending is projected to total $3.8 trillion in 2019, an increase of 3.2 percent from expected spending of $3.7 trillion in 2018, according to the latest forecast by Gartner.

Enterprise software spending is forecast to experience the highest growth with an 8.3 percent increase in 2019. SaaS is driving growth in almost all software segments, particularly CRM, due to an increased focus on providing better customer experiences. Cloud software will grow at more than 22 percent this year compared with 6 percent growth for all other forms of software. While core applications such as ERP, CRM, and supply chain continue to get the lion share of dollars, security and privacy are of particular interest right now. Eighty-eight percent of recently surveyed global CIOs have deployed or plan to deploy cybersecurity software and other technology in the next 12 months.

“While currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it is the shift from ownership to service that is sending ripples through every segment of the forecast,” said John-David Lovelock, research vice president at Gartner. “What this signals, for example, is more enterprise use of cloud services — instead of buying their own servers, they are turning to the cloud. As enterprises continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business.”

IT services will be a key driver for IT spending in 2019 as the market is forecast to reach $1 trillion in 2019, an increase of 4.7 percent from 2018. An expected global slowdown in economic prosperity, paired with internal pressures to cut spending, is driving organizations to optimize enterprise external spend for business services such as consulting.

More detailed analysis of the outlook for the IT industry is available in the Gartner webinar “IT Spending Forecast, 3Q18 Update: Ride the Innovation Wave.”

Channel Impact^®
The positive numbers, especially those related to IT services, demonstrate solid opportunities for channel partners in the coming year.

Ingram Micro Opens New Custom Integration Center

Ingram Micro has announced the transformation of its Components Business Unit into a new group called Integrated Solutions. Responding to the channel’s need for custom computing solutions and advanced integration services and support, this team focuses on accelerating the channel’s time to market with custom solutions and optimized individual components.

Based at Ingram Micro’s Mira Loma, Calif., warehouse location, a new center offers system design, compatibility, and regulatory engineering, and executes the integration process from proof of concept through testing, acceptance, packaging and delivery services, with an option for migration, deployment, and support services.

“The need and demand for custom, high-performance computing solutions continue to grow, pushing well beyond the capabilities of out-of-the-box technology and calling for more ingenuity and advanced integration,” said Ryan Grant, vice president of Ingram Micro’s Integrated Solutions team. “Channel partners are no longer just selling technology; they are solving for desired business outcomes and architecting custom, multi-vendor solutions, and services that meet the needs of their customers and enhance the customer experience. Our goal is to help channel partners streamline the sales cycle and uncover more opportunities and command higher margins.”

Later this year, Ingram Micro plans to debut a go-to-market partner program and engagement model that replaces the longstanding Systems ArchiTECHs community. This program will focus on OEMs and service providers who custom build high-performance computing and infrastructure solutions, and rely heavily on Ingram Micro for engineering, product sourcing, and integration services.

Channel Impact^®
This initiative is likely to provide further support for U.S.-based channel partners through comprehensive integration services, further enabling them to build and deploy custom computing and high-end infrastructure solutions.

Extreme Networks Unveils New Training Program for Global Partners

San Jose-based Extreme Networks has launched “Extreme Dojo,” a new online training program for global partners consisting of competency-based curricula delivered in video modules. Each of the four curriculum levels offers foundational and commercial knowledge of Extreme’s business model, its solutions portfolio, vertical positioning and solutions selling strategies.

“We’re excited to offer Extreme Dojo to our global partner community as an easy and enjoyable way to learn about our products, solutions and business model,” said Chief Revenue and Services Officer Bob Gault.

Each of the four “belts” represents a specific aspect of Extreme’s business model and within these levels are more specific trainings that align to individuals’ job profiles and responsibilities. The White Belt serves as the initial onboarding, offering an overview of the company, its value proposition, partner roles and responsibilities. The Yellow Belt provides an overview of the partner program and associated benefits, including rebates, specialization programs, NFR programs, deal registration, and MDF. The Green Belt reviews tools that provide information on the product price list, BMI configuration, implementation/branding guidelines and Partner Marketplace offerings to support with closing deals and planning, and similar partner offerings. The top tier, known as the Blue Belt includes solution overviews and sales training culminating in sales certifications.

Once each belt level is completed, partners are eligible for further incentives.

Channel Impact^®
Partners who complete the free courses are likely to achieve a better understanding of Extreme’s solutions, which ultimately enables them to support customers.