Canalys Forum 2024: A Transformative Event for Channel Partners in Bali

The Canalys Forum Asia Pacific 2024, held on December 4 in Bali, brought together the brightest minds and leaders of the channel ecosystem under the theme, “Embrace the Challenge, Drive the Change, Be the Champion.” This premier event set the stage for insights into the rapid evolution of technology and its implications for channel partners, especially as the world transitions from hardware to software, services, AI and cybersecurity.

With the Asia-Pacific region contributing 53% of global economic growth, the forum emphasized the channel’s critical role in supporting technological innovation and adoption. Despite challenges, the session on channel recovery highlighted how the acceleration of IT changes is mirrored by the channel’s adaptability.

2025: From Hardware to Holistic Solutions

The event outlined the shift in the industry as technology selling merges with services. As Dell emphasized, the first step to AI benefits lies in major investments in data management. Businesses must evolve with AI-powered services, which present a significant growth opportunity for partners. Predictions for 2025 show that general AI (Gen AI) will be a transformative opportunity—not just in ways we currently imagine.

Key Trends to Watch in 2025

Canalys identified five critical trends that will define the channel ecosystem in 2025:

1. B2B Buying Behavior: Buying psychology is changing, driven by a new generation of decision-makers.
2. Economic Shift in Partnering: The economics of channel partnering are undergoing a historic transformation.
3. Gen AI as a Partner Opportunity: This is not about replacing roles but rethinking how AI adds value.
4. Rise of Specialist Distributors: IT distribution is evolving with an ecosystem-first approach, moving beyond traditional financing.
5. Adaptation to Fast Change: Success will favor partners who can adapt to the speed of change and build engines for sustainable growth.

Building Engines for Channel Growth

Jaideep Malhotra, President of Asia Pacific & Japan at TD SYNNEX, emphasized “Destination AI,” encouraging partners to position AI as a marketplace. Meanwhile, Redington discussed creating marketplaces focused on SMBs—a price-sensitive segment prioritizing software, security, and services. SMBs increasingly rely on distributors for cost-effective cloud and IT solutions.

Sustainability and Cybersecurity Take Center Stage

The session, “Truly Circular IT: Pipedream or Possibility?” explored the IT industry’s growing need for sustainability. Partners offering IT asset takeback programs struggle to scale against the continued dominance of new device sales. As the IT channel grows, sustainability is becoming a business imperative.

Cybersecurity remains a rapidly growing category, with managed services expected to grow by 15% annually and cybersecurity at 10%. The “Platforms of the Future” session simplified strategies for partners to build robust cybersecurity ecosystems, emphasizing how data and AI are replacing traditional CPU reliance with GPU-powered solutions.

Cloud Transformation and Industry Focus

Canalys highlighted the decline in Chinese cloud vendor growth, which has slipped from 65% in 2020 to 14% in 2024. Despite their pricing advantage of 30-40% over U.S. providers, Chinese vendors remain highly segmented:

• Alibaba focuses on e-commerce.
• Huawei targets ITES.
• Tencent Cloud specializes in entertainment.

This underscores the need for partners to adopt industry-specific approaches.

Predictions for 2027

The forum concluded with bold predictions for the channel’s future:

1. The market opportunity for agentic AI will reach $7 billion, with over $5 billion driven through the channel.
2. Nearly one-third of PC production will shift from China to Southeast Asia.
3. India will emerge as the third-largest economy, prioritizing AI investments and using 55% locally manufactured components for devices.
4. Intel, as we know it today, will likely undergo significant transformation.
5. Flexible financial models like “Buy Now, Pay Later” will democratize IT access for businesses, especially in India.

Adapting to the New Normal

The forum called on channel partners to embrace change proactively, as cloud reliance, AI integration, and cybersecurity advancements redefine the industry. Alastair Edwards, Chief Analyst at Canalys, noted that India’s untapped market and AI priority present significant opportunities. The rise of Virtual CISOs (vCISOs) and specialized managed services will further shape the future of IT.

Canalys Forum 2024 demonstrated the channel’s pivotal role in navigating the shifting landscape. With actionable insights, the event empowered partners to capitalize on emerging opportunities in AI, sustainability, and cybersecurity while building robust ecosystems for growth.

As the tech industry races toward 2025, channel partners are more than intermediaries—they are the bridge between innovation and business success. Stay tuned to itVARnews for continued coverage of the trends shaping the future of IT.