Canalys Forums 2022: It’s not just the economy, stupid!

We talked to Alex Smith, Canalys VP Channels, as part of our series of Canalys Expert Interviews. These blogs give an overview of the topics and in-depth discussions that we’re preparing for the Canalys Forums 2022.

What are the two most important issues for channel partners at the mid-point of 2022?              

The economy rears its head again. Inflation is the reality in front of us now and all companies (and people) are trying to navigate it. Partners are not immune and while, on one side, there are benefits, in terms of rising prices for products and services, on the other is the issue of how to manage their own cost structures. Fears of recession looming are also bad for business. Beyond the economy, partners still face capacity issues, both from supply chain challenges in hardware markets and skills gaps on the labor side of things.

At the Canalys Forums last year you hosted Expert Hubs on vendor relationships. What did you discover and has anything changed?        

The biggest takeaway for me was the stated strength in vendor-partner relationships. They are more akin to marriages than they are to dating. This means they take long to develop, can go through rocky periods, but once established often stand the test of time. Vendors and partners in these relationships make mistakes but will recover. As the market evolves, they will figure out a way to adapt together. The lesson for newer vendors trying to build their own relationships in the channel ecosystem is that it’s a marathon, not a sprint. These relationships are formed over years of continued effort, not quarters.

What trends will spark new customer spending in 2023?              

One thing that has struck me as I’ve started traveling again is the rate of construction activity in many cities. Data shows that growth is happening in a mixture of large developed markets (China, the UK and the US) and large emerging markets (India and Indonesia). The rise of hybrid workforces means that growth can happen in multiple cities and regions, rather than be solely concentrated in a few economic hubs. Across these infrastructure projects, technology is playing an increasingly important role. Smart buildings, fiber networks, video-friendly conference rooms, sensors – technology is becoming as important as the concrete! This creates wonderful opportunities for partners that can get in early in these development projects.

What should vendors be talking about with partners at the Channels Forums 2022?       

We need to start planning for potential turbulence in the market in the near term, given the economic factors mentioned above, but not lose sight of the fact that technology is only becoming more important to businesses, governments and consumers. The secret sauce for any company is how to position itself to navigate any potential downturn, but simultaneously, how to be prepared to accelerate when the markets are at their strongest.

What one piece of advice do you have for partners or vendors as they consider how to spark growth in 2023?  

Refresh and modernize your customer case studies. The last two years have been very strong for the tech industry, so there is no shortage of insightful and impactful customer stories out there. Online content is a vital piece of the modern buying journey, and partners are increasingly an important source of information about technology and, more importantly, use cases from real customer deployments.  

How do you think attending the Canalys Forums, either onsite or virtually, helps the vendors and partners?      

It’s important to have a finger on the pulse as to what is going on in the industry, and to hear different perspectives from both peers and competitors. That comes from the sessions, targeted meetings and, for those of us on site, from the informal conversations that happen in the hallways or over meals. Events are an important part of the industry calendar, and we strive to put on some of the best ones out there!