Rising Trends in Enterprise Technology Spending and Their Impact on Partner Ecosystems
Enterprise technology spending is on the rise as organizations focus on accelerating digital transformation. A recent survey by Enterprise Strategy Group (ESG) of 700 IT decision-makers and 500 channel partners sheds light on where IT budgets are being allocated and how partners are evolving to meet new demands. To discuss these findings, ESG’s Kevin Rhone spoke with channel leaders from Red Canary, Palo Alto Networks, and Trend Micro. Here are the key takeaways from their conversation.
1. Security Takes Center Stage in IT Spending
As businesses ramp up their technology investments, security is the top priority. According to ESG’s 2022 Technology Spending Intentions Survey, data and operations security stand out as the number one focus for IT decision-makers. A particular concern is the rise in ransomware attacks, with 46% of respondents ranking ransomware preparedness as one of their top five business priorities.
For partners, this shift toward security has led to a rapid transformation in the types of services they offer. Louise McEvoy of Trend Micro explains that their strategy has evolved from being a traditional reseller to providing a wider range of services—such as cloud data security, AWS certification, and Google Cloud Platform co-selling—requiring new skills and expertise that were not needed even a couple of years ago.
2. A Shift Toward Long-Term, Services-Led Strategies
Partners are increasingly moving away from selling products to providing ongoing services. This trend is highlighted in ESG’s “Security Services Trends at MSPs” report, which reveals a growing emphasis on delivering complex, high-value services over time. Craig Halliwell of Red Canary notes that while security products were enough before COVID-19, businesses now realize they need experts who can monitor, review, and prioritize security alerts. As a result, the demand for managed services has soared.
Jean-David Lehmann from Palo Alto Networks adds that vendors are also shifting towards a service-led approach. In the past, vendors focused on selling product features, but now there is greater emphasis on how those features can be translated into services that help partners differentiate themselves in the market. This shift is opening up new opportunities for partners to cross-sell and upsell services to customers, deepening relationships and delivering more long-term value.
3. Vendors Supporting Partners with Enhanced Enablement and Training
As partners pivot to offer more complex, services-oriented solutions, the role of vendors in supporting their partner ecosystems is becoming increasingly important. Vendors are focusing on improving enablement, training, and certification programs to ensure partners can keep up with the rapid pace of change in the industry.
Louise McEvoy stresses that it’s crucial to help partners understand emerging customer challenges and provide the tools to address them effectively. Red Canary’s Craig Halliwell emphasizes the importance of certifications and specializations, such as Palo Alto’s XMBR specialization, which help partners formalize their expertise and demonstrate value to customers.
Jean-David Lehmann points out that the traditional channel model, where vendors simply provided products and training, is no longer enough. Vendors must now be agile, adjusting their programs to help partners develop faster and become more self-sufficient in delivering solutions.
Conclusion: A New Era for IT Partnerships
The growing focus on security, the shift to services-led models, and the need for better partner support all point to a new era in the way IT companies and partners collaborate. Those vendors who can quickly adapt their programs and strategies to these changes will be in a strong position to succeed in an increasingly competitive market. As enterprise IT buyers evolve in how they purchase and consume technology, partnerships that can navigate these shifts will stand out, driving mutual success.
