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Home Market data

Canalys bigs up three partners it says point to channel’s future

Ultima, Insight and Advania hailed by analyst

Doug Woodburn by Doug Woodburn
9 October 2024
in Market data, News
Alastair Edwards, Canalys Forum 2024

Canalys Chief Analyst Alastair Edwards branded AWS a "distributor" at recent Canalys Channel Forum EMEA event

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The diversification moves of three partners show a possible route out of the channel’s current malaise, Canalys Chief Analyst Alastair Edwards told Canalys Forums EMEA today.

Picking up from where Informa Fellow Steve Brazier’s dramatically downbeat opening keynote left off, Edwards acknowledged that the channel has over the last year suffered its worst performance in several decades.

“We see there are some opportunities ahead and we want to share what that looks like,” Edwards added, however.

The only way the channel can maintain relevance is to “adopt a similar approach of accelerated change and transformation” to that of its customers, Edwards claimed.

He went on to highlight three companies he feels are “doing what we think many of you should think about” in the areas of AI, services and circular IT, respectively.

Ultima’s AI ploy

Reading-based Ultima, which Edwards characterised as a “new breed of AI-powered technology service provider”, was the first to feel its ears burn at the Berlin-based event.

“They’re extending AI and automation into many of their services and offerings to really enhance their services. But what they’re also doing is driving an organisational change, top to bottom – educating everyone internally about how AI can be deployed,” Edwards added.

Insight’s services success

Next up, Edwards drew attention to how Insight had successfully boosted its margins and share price by making targeted services acquisitions such as SADA and Amdaris.

“Insight, like many of you, had a lot of pressure on its hardware business and has seen revenues decline,” he said.

“But through targeted acquisitions of Google Cloud, ServiceNow specialists and its professional services divisions, it’s actually driven an 18% growth in its services gross profit over the last six months, an 18% rise in operating profit and over 40% growth in its share price.”

Advania squares circular puzzle

Finally, Edwards doffed his cap to Nordic powerhouse Advania for investing in a new facility that will allow it to take back and refurbish over one million devices.

“That’s helping them create new circular and sustainability business models, which will create lucrative revenue streams, but also help customers reach their sustainability goals,” Edwards explained.

“These are just three examples of what many of you are starting to do in your businesses,” Edwards added.

“There is going to be a polarisation in this room in all the channels to market in terms of those capturing those growth opportunities and those that are falling behind,” he concluded.

Doug Woodburn
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Doug Woodburn is editor of IT Channel Oxygen

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Tags: AdvaniaCanalysfeaturedInsight
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