AI-Related Sales Will Be Strong for Channel Partners in 2024

As we closed the door on 2023, we ushered in a new year and simultaneously entered Year 2 of the generative AI era. Throughout 2023 — as expectations around the technology skyrocketed — channel partners were inundated with larger-than-life promises from vendors and stakeholders alike. Yet, amid the fervor, many of you were left pondering a fundamental question: Once the dust settles, what will be in it for me?

Gen AI Infrastructure: Seizing Opportunities

Although we’ve barely dipped our toes into 2024, there’s tangible evidence that the time is ripe to seize myriad sales opportunities created by the initial infrastructure buildup of gen AI. Data center operators, who have finally acquired the highly coveted GPUs needed to operate machine learning models, are now shifting their focus to complementary products required to operate the gen AI environment, such as power distribution units (PDUs) and rack enclosures.

The slew of new opportunities is underscored by a recent multimillion-dollar win by a pair of Eaton PowerAdvantage partners. A service provider running AI data centers —who had spent the majority of 2023 laser-focused on securing thousands of GPUs — was forced to quickly pivot and seek out the other infrastructure components needed to turn the massive GPU investment into a revenue-generating engine. Topping the customer’s must-have list were thousands of rack PDUs. Because rack power density is exploding with AI applications — from the traditional 5 to 10 kW to now up to 50 kW or more — locating a large quantity of rack PDUs proved to be a significant challenge.

Swift Success for G4 Rack PDU

The data center operator reached out to two Eaton partners for a quote, with fast lead times representing a key requirement for the customer’s success. Because Eaton was in the midst of launching the new G4 Rack PDU, we had ample supply on hand to meet the service provider’s urgent needs. With a turnaround time of less than one month from initial quotation to product delivery, the opportunity turned into a multimillion-dollar deal for our partners.

Soaring PDU Sales

Although this is just one example, there are many other opportunities occurring simultaneously, which has contributed to huge upsurge in rack PDU sales.

Not only did the North American market grow more than 22% in 2023, predictions call for a healthy 9% growth rate in 2024 against a very strong baseline, according to market research firm Dell’Oro.

With PDUs representing the fastest-growing product line in the power category, Eaton partners will be able to ride this unprecedented wave with our new G4 PDU. The unit is packed with industry-leading capabilities, including a universal input connector that speeds deployment, a small footprint that saves space for revenue-generating equipment, and a high-density form factor that affords 24, 42 or 48 evenly distributed outlets in an IT rack. In addition to providing a user-configurable firewall, the G4 is the only PDU on the market with UL 2900-1 and IEC 62443-4-2 cybersecurity certifications.

Enclosure Inclusion

Rack PDUs certainly aren’t the only Eaton product enabling partners to thrive in gen AI applications. Because Eaton holds the No. 1 position in the rack enclosure market, our channel partners are uniquely positioned to complement rack PDU sales with the enclosures needed to host AI servers.  Even more, our full portfolio of cable management accessories and fiber connectivity will help partners deliver an end-to-end solution. And, don’t forget: All of these product categories are eligible for Deal Registration.

The new year is swinging wide open with prosperous possibilities — and Eaton will be by your side with the products and support you need to thrive across the channel’s changing landscape.

This guest blog is part of a Channel Futures sponsorship.