Consolidation is the name of the game; how can channel organizations best support their customers in rationalising the vendor environment?

Credit: 215266548 © Thapana Onpalai | Dreamtime

As we’ve discussed in the previous two articles, businesses across the Asia-Pacific region are feeling the urgent need to transform their IT environments and do so in a highly scalable, resilient, and robust manner. For the channel, this is a massive opportunity, particularly considering that many of these enterprises are actively looking to adopt a managed services approach to their transformation.

This is the third article in a series that highlights how Telstra, in collaboration with other leading enterprises across Asia-Pacific, is assisting partners and their customers in achieving the potential of digital transformation. Read the part one here and part two here.

It was reported that the APAC managed services market enjoyed a year-on-year increase in annual contract value of 87 per cent in 2021. As noted in the report: “The global market today is driven by two mega-trends: the move to the cloud and digital transformation. COVID accelerated those moves by three to five years,” Steve Hall, partner and president of ISG said. “Business has clearly shifted, and if you’re lagging in your own strategy change, you may not be competitive much longer.”

Research from McKinsey shows that through the COVID-19 pandemic, most organizations had increased their rates of digital adoption. While this has helped them to weather the storm, it has meant IT environments in which services, technologies, and suppliers have also grown significantly. A sprawling IT environment introduces consequent challenges into the organisation, including:

  • Increased costs in managing so many vendors.
  • Shadow IT and limited oversight into the whole-of-environment.
  • Compromised security from links between technologies and applications not being fully considered.
  • Inefficient procurement processes, as the organization needs to grapple with an ever-more unwieldy environment.

For many of these organisations, the next step in ongoing transformation is to address these challenges, and that means they need to rationalise down and consolidate their environments. That’s where the partner comes in.

How partners can facilitate IT consolidation

The solution to the challenge of vendor consolidation is to streamline channel engagement; The fewer suppliers and partners an enterprise has, the better for it as it goes through the enormously complex transformation initiatives.

That means that enterprises benefit from having partners that can act as a “one-stop-shop,” providing them with a full suite of technology services that have been selected for their proven market capabilities. These partners can engage with their customers on a strategic level, offering expertise in building solutions, but for the end-user enterprise, it will all come through a single point of contact.

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