Tech Data APJ Direction of Technology Report: AI, Cybersecurity Emerge as Key Business Movers in Channel

Tech Data, a TD SYNNEX company, has published its third Direction of Technology Report for the APJ region. The report consolidates channel partner insights across business performance, perspectives on current business models, and expectations for 2025 and beyond within the context of a rapidly evolving technology ecosystem.

This year’s Direction of Technology Report highlights how partners are navigating challenges like rising competition and tighter margins while embracing opportunities for growth, including greater collaboration within the ecosystem. Many are increasingly focused on expanding their service offerings, with Managed Services and Professional Services expected to account for 57% and 58% of their business portfolios, within the next three years. While the rapid adoption of Artificial Intelligence (AI) continues to reshape the tech landscape, core technologies remain a top priority for partners, with sustained demand for security solutions emphasising their interconnectedness to AI.

“For the third consecutive year, the Direction of Technology Report champions the voice of our APJ partners. One key takeaway is that while partners and the industry are excited to explore the efficiencies and opportunities offered by GenAI, core technologies like networking, security, and endpoint devices remain key revenue drivers that continue to be in focus,” said Jaideep Malhotra, President of TD SYNNEX, Asia Pacific & Japan. “With our unique position at the centre of the IT ecosystem, this report provides a unique snapshot of the core and upcoming segments of technology that partners of today and tomorrow require to achieve profitable growth in the IT channel.” 

What the Direction of Technology Report Found

Key highlights for the APJ market include:

• Driving AI momentum across APJ. AI adoption is accelerating, and customers are leading this demand, eager to leverage AI for growth and efficiency. This is evident as 84% of partners reported receiving GenAI POC requests. To meet this surge, 36% of partners plan to offer AI solutions within the next two years, focusing on GenAI solutions (52%), AI services (48%), and AI-enabled devices (35%), signaling the technology’s critical role in business transformation. 
• Securing the future with cybersecurity. Cybersecurity continues to dominate as the top technology priority, with 43% of infrastructure-focused partners planning to offer security solutions in the next 24 months. The growing sophistication of threats and the dual role of AI—both as a tool for security and a target requiring protection—are driving demand for advanced solutions. Partners recognize the critical need to safeguard data integrity while tapping into the lucrative security market.
• Bridging the talent gap for future growth. Amidst rapid tech evolution, partners are struggling to fill critical roles in high-growth sectors like AI, security, and cloud. AI skills, in particular, have surged in importance, rising from 15% in 2023 to 27% in 2024. With security (30%), AI/GenAI/ML (27%), and data analytics among the top skills in demand, partners are focusing their hiring strategies in these areas to meet market demands and support future growth.
• Core technologies driving revenue growth. While AI is capturing attention, core technologies such as networking, endpoint devices, security, and servers continue to remain the primary revenue drivers. Endpoint devices, despite market challenges, continue to be a significant category, with AI PCs set to fuel further growth. In 2024, endpoint devices lead technology sales in APJ, followed closely by networking and security, with AI/GenAI/ML coming in behind as a growing but secondary focus for partners.

The third-annual Direction of Technology Report is based on a survey of more than 1,000 technology resellers, systems integrators, service providers, and managed service providers from over 60 countries globally, with 287 respondents from the APJ region.

To download the new full Direction of Technology Report, visit http://ms.spr.ly/APJDoTENG.