TD Synnex Study: Business Leaders Slow to Seize the Metaverse

Although one-half of millennials and GZ adults are interested in the metaverse, only 12% of business leaders in North America say they will offer augmented and virtual reality (AR/VR) solutions by 2024, according to TD Synnex. That statistic aside, forecasts suggest the global metaverse market will total $800 billion in the next 24 months.

These are among the findings outlined in the recently released inaugural TD Synnex Ecosystem Benchmark Report. Technology market analyst firm Canalys also contributed to the report.

Beyond the metaverse, the report also addresses trends in professional services. Almost three in four respondents anticipate increased revenue from this solution area. The same number expect to sell more professional services in the next three years.

TD Synnex surveyed partners of midsize technology ecosystems, defined as technology companies with 1,000 seats and fewer. Projecting out two to three years, the report identified four themes for the technology partner ecosystem. These include professional and managed IT services expansion, high-growth technology investments, as-a-service consumption model adoption and AR/VR opportunity gap.

What’s Driving Growth?

More than three in four (77%) North American partners say expanding technology solution offerings is important or very important. They are focused on solutions directly linked to cloud capabilities by applying consumption-based models and ensuring solutions are secured. Within two years, partners say they will offer technology solutions such as device as service (31%) and IoT (23%). Security came in at 22%, cloud integration at 20% and cloud deployment at 20%.

Also, partners will make room for professional and managed IT services in their future business mix, anticipating the most increase over three years. Every category of services – from product life-cycle services to packaged services – is likely to grow. Partners indicate a 74% increase in professional services.

What’s in Decline?

Partners see the largest decrease in reselling hardware in the next three years. Still, hardware resale will be fundamental to business solutions, as most North American partners (78%) forecast.

Networking (18%), endpoint (16%) and services and storage (10%) represent three of the top five revenue drivers for partners. Networking came in as the single most profitable technology for North American partners.

Canalys’ Alex Smith

Respondents indicate hardware categories represent the opportunity to attach services, and hardware-based programs –such as device as a service – creating a virtuous cycle of revenue. Partners are prioritizing this as part of their portfolio offerings within the next two years.

“Channel partners are actively developing their services businesses,” said Alex Smith, vice president of channels at Canalys. “We see that partners are looking to invest across the technology ecosystem.”