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Four Mega Trends Shaping End-User IT Spending in Asia by 2015

- June 7, 2010 - 0 Comments

Market changes in the next five years will shake up the partner landscape and offer new opportunities for success — that’s according to new data from Springboard Research that provides a guidebook for Asian ICT business partners to position for success in 2015.

Springboard surveyed 200 end-user organizations across India, Singapore, China, Australia, and Malaysia and asked them to briefly describe the most critical shift they expect to occur with their organizations’ IT spending and strategies within the next five years.

Mike Allen, Cisco’s Managing Director of APAC Channels, commissioned the study prior to Partner Summit in May 2010 and covered the data in his breakout session onsite and during his one-hour Partner Summit recap.

The survey indicates that Asian customers believe big IT changes are on the horizon. The most apparent sign of the changes afoot is visible at the top of the list (see Figure 1, below) where respondents indicate that cloud and managed services represent the most critical shift within their organizations by 2015.

The study also revealed four mega-trends that can help the APAC theater and an increasingly global network of partners in gearing its work and efforts with end users. The findings include:

  1. APAC will accelerate growth by focusing on the three multi-billion opportunities known as architectural plays–borderless networks, collaboration, including video, and virtualization.
  2. A powerful partner ecosystem is key to a successful collaborative channels strategy, and it includes partners, customers, and ISVs working together to jointly deliver differentiated value.
  3. Consumption models need to evolve to include annuity streams, managed services, cloud services and XaaS (anything as a service.) This will help partners create the expertise needed to drive a profitable practice in the future. According to Mike Allen, new consumption models also provide the opportunity “to disconnect price from discount and reconnect price to value.”
  4. Two powerful areas of expertise that will be critical include vertical solutions and professional services. Specializing in these areas will allow partners to differentiate and grow profitably. 

Change represents opportunity, but it brings with it risks and challenges as well. Do you agree with these findings? What big changes do you see on the horizon?

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