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Turbulent year ahead predicted for European IT and Telecom channels

Consolidation, new technologies, changing business models and skills shortages create major challenges for established supply networks

[London, 17 January 2014] IT Europa, the leading provider of strategic business intelligence, news and analysis on the European ICT market and its channels, today announced its channel predictions for 2014. While an improving economic climate may mask the impact of some of the changes ahead, fundamental changes in both technologies and business models is set to cause casualties as well as creating new champions.

The top 10 IT Europa European Channel Predictions for 2014 include:

  • PCs continue to lose ground to other platforms, even in the enterprise - the impact of new form factors, falling prices and squeezed margins will continue to pile pressure on traditional resellers

  • Software, and ISVs gain influence over platforms - increasingly it will be software that dictates the choice of technologies with more and more of it available as-a-service

  • Vendors seek new ways to gain customer influence, starting to use Big Data analysis tools - increasing use of business intelligence and marketing automation will move from enterprise sector into SME potentially threatening traditional lines of channel communications

  • Distributor consolidation and product area diversification continues, matched by emergence of new specialist players - continuing pressures on margin and the impact of the Cloud will further drive a race to scale, to expand coverage, grab niche players and reduce competition

  • Questions on how channels charge for knowledge and advice find few answers - further cloud penetration of the SME sector and the continued growth in Hybrid IT will increase the demand for integration skills but with increasing commoditisation of product and the continued growth in on-line ordering how will it be charged for?

  • New types of server and server supply models emerge - growth in the supply of specialist bespoke servers, particularly for datacentre applications will cause problems for channels as they become marginalised

  • Security and mobility stay favourite areas for start-ups; expect plenty of issues and scares - growth and increasing penetration of mobile technologies is set to continue but the need to secure mixed networked environments will perhaps spur even greater growth

  • Machine-to-machine, particularly wearables, exhibit rapid growth but channel impact is limited - new technologies and applications will abound but few will fit easily with traditional channels and new routes to market will emerge

  • Enterprise apps and their marketplaces abound, but with uncertain quality - increasing mobile penetration will drive demand for apps to link corporate data but quality, security, licensing, management, payment systems and support will become issues

  • Demand for skills in the channel creates shortages, provoking more M&A activity across frontiers - investment in training has been hard hit during the recent recession, as growth returns it will highlight shortages in skills in such areas as application development, networking and integration

Further details and commentary on these predictions and links to some of the stories and analysis behind the can be seen at

"The pace of technological advance and changing supply and business models are combining to create a perfect storm of challenges for traditional routes to market," commented Alan Norman, Managing Director of IT Europa. "Further casualties, an increase in M&A activity and the emergence of new channels can all be expected in the year ahead."

Many of the issues behind some of these trends and predictions will provide the focus of discussions during some of IT Europa's forthcoming events including the European ISV Convention 2014 which takes place at the Lancaster London Hotel, on 26 March 2014. ISVs wishing to attend the convention and vendors or service providers interested in sponsorship opportunities can find further information at:

The convention will end with a gala dinner at which the winners of the European IT & Software Excellence Awards 2014 will be announced. Full details of the awards can be found at (Award entries have to be submitted by midnight on 24 January 2014.)

About IT Europa
IT Europa is the leading provider of strategic business intelligence, news and analysis on the European IT marketplace and the primary channels that serve it. The company publishes European channel publications such as the IT Europa Newsletter, markets a range of database reports and organises European conferences and events for the IT and Telecoms sectors. For further details visit:

For further information contact:
Alan Norman
Tel: +44 (0) 1895 454 604
Email: [email protected]

Source: RealWire

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