Let’s go with some big ideas to round out the week.
In a recent presentation at the Canalys Channels Forum, veteran analyst Steve Brazier warned that the tech hardware industry is facing an existential crisis, with growth shifting to mere replacement cycles. He stated that major vendors, such as Cisco and HPE, are struggling, with Cisco reporting a fifteen percent decline in its switching and router business. HPE’s revenue growth in the last fiscal year was primarily driven by artificial intelligence server sales, which are less profitable due to direct selling. Brazier’s insights are supported by data from Canalys, indicating a consolidation in the channel as larger resellers acquire smaller players. He pointed out that while the hardware market is flat, cybersecurity remains a growth area, with double-digit increases. The challenges faced by the channel are further underscored by a comparison of market capitalizations, showing that investments in channel partners lagged behind the broader market. Brazier concluded that the tech industry in Europe has missed significant growth opportunities, leading to increased costs for office workers in the region. As artificial intelligence continues to dominate, he cautioned that the channel has been largely excluded from its benefits.
In a recent article on Techaisle’s blog, analysts predict significant advancements for small and medium-sized businesses by the year 2025. Contrary to traditional beliefs that large enterprises lead technological adoption, SMBs are expected to leverage their agility and innovate, particularly with the rise of specialized artificial intelligence solutions. The article outlines critical trends, including a shift towards industry-specific AI tools that promise measurable returns on investment, with the expectation that by the fourth quarter of 2025, major verticals will see three to four dominant players in the market. Additionally, the adoption of “automation-in-a-box” solutions will simplify technology integration, while SMBs are anticipated to increasingly seek unified experience platforms to enhance communication and customer service. As reliance on AI grows, vendor risk management and security measures will become paramount, requiring SMBs to evaluate AI vendors thoroughly. Overall, SMBs are poised to utilize AI analytics for improved decision-making and customer insight, making 2025 a pivotal year for this sector.
Why do we care?
Your questions to ponder.
How much of your business is reliant on hardware? That’s very old thinking if it is.
Which emerging technology trends are ones that you can leverage to help customers drive business outcomes?