News in the Channel - issue #13

REVIEW OF 2023

new hard drive equipment. There have been diverse factors influencing 2023 trading, including an oversupply of HDDs in the channel, availability of adjacent components, more cautious demands from end users due to signs of an economic slowdown and various disruptions affecting consumer-facing markets. On a sector- specific level, this includes the writers’ strike in the media and entertainment market. Halted filming and TV projects had profound implications for industry profits and investment. But it’s not all bleak. Investment in technology continues, including the EU's key funding programme for research and innovation, Horizon Europe, with a budget of €95.5 billion. There have been

major government tender awards for IT spending and partners announced for its ICT framework, TePAS 2, worth £12 billion. With this in mind, we are optimistic about 2024 and well positioned to weather the near- term business climate to increase profitability and capture attractive long-term opportunities for mass capacity storage. Working hand in hand with our channel partners, the execution of our HAMR product roadmap, with 30+TB in 2024, will extend our industry leadership in areal density and improve the total cost of ownership for their customers. Ongoing innovation such as self-healing technologies will mean we can offer customers simplified solutions that reduce e-waste and power consumption, helping them meet their sustainable targets.

Greg Jones , vice president of business development, Kaseya While it has definitely been challenging, overall I believe 2023 has delivered for the MSP industry as a whole. Personally, for myself and Kaseya, it has been a great year. We have seen very strong growth across our partner base, and we have achieved incredible results across the business – a 30% year-on-year growth. This has a direct coloration with the MSP market as a whole; our success is an indication of what is happening in the MSP world. In terms of influences on trading this year, the co-managed IT space and outsourcing have seen unprecedented growth in the market, far more than I was expecting. Personally, I think security failed to live up to its potential in 2023: although it has been

great for many MSPs across the globe, I believe there is still money left on the table. In addition, some leading edge and bleeding edge technology has not had the focus it deserves. We still have a long way to go with AI and machine learning. They are going to revolutionise the MSP market in the next five years. We are living in exceptional times with regards to business and technology and I believe the opportunities are endless for the MSP community. It is easy to focus on the negatives in business, but we work in an exceptional industry. I am looking forward to seeing what 2024 brings for co-managed IT and outsourcing: I think it is going to be huge.

Greg Jones

Over the course of 2023, we have seen many MSPs expand into new markets and services. Cloud, security, Generative AI and machine learning have all seen huge demand, but there is still a long way to go. Also, the energy, information technology, healthcare and utilities sectors have experienced considerable growth overall. But most of all, SMBs are increasingly leaning into technology to drive growth and business efficiencies, presenting new opportunities for the channel.

kaseya.com

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