How channel firms are revving up for 2024
This month's Kaleidoscope feature provides a snapshot of opportunities and challenges facing channel businesses this year, providing a quick reference to where business leaders are focusing their efforts and forecasting growth, along with a cautionary note or two.
IAN ROWAN
COUNTRY MANAGER UK&I, WILDIX
This year, most growth is expected to come from vertical solutions that allow partners to maximise their revenues by focusing on specialist niche markets. The challenge will be understanding these markets at a level that instils confidence in buyers. It had been a challenge for many partners to switch from their previous business models, but during the last year, it seems that the objections to change have been overcome with external factors such as high interest rates encouraging partners to explore different marketing strategies. Partners have also shown their desire to adopt more of the services we offer, such as international SIP and HWaaS, as their main offerings.
PETE TOMLINSON
CEO, WINDSOR TELECOM
Windsor grew by over a quarter in 2023, delivering some of our largest projects. SMEs are increasingly adopting new ways of working and serving customers using technology that was previously the domain of large enterprises, be that voice, video, social messaging, productivity and reporting tools for better hybrid working or dealing with security and compliance issues. The vendor community is also innovating, now putting AI, integrations and usability at the heart of their roadmaps with the convergence of software, comms and IT.
DAVID WATTS,
MD UK&I, TD SYNNEX
We are cautiously optimistic for 2024 but also expect any recovery to be gradual and to remain sensitive to external factors. Once again, cloud and security will be key areas of growth and AI will have more of an influence. We’ll continue to see greater interest in partnering and ecosystems with more partners looking to demonstrate the positive steps they are taking to reduce their carbon impact and to be more sustainable. This is in addition to ensuring that the technology they put forward can meet the sustainability expectations of their customers.
ANDREW DICKINSON
CEO, JOLA
Our target was to sign 120 new partners in FY23, which we exceeded within six months. We have helped partners build significant recurring mobile data revenues, with 90-plus per cent of orders coming from their existing customers. The impending switch to all-IP is a catalyst for resellers to add mobile data to their portfolio as 4G/5G remains the only viable alternative to single PSTN lines. Some of our partners have won huge deals that are contributing to a steadily growing run rate. Traditional calls and lines businesses are valued at 8-10x EBITDA whereas mobile data businesses are still transacting at over 20x.
JAMIE HUGHES
UK SALES DIRECTOR, EVOLVE IP
During 2023 we have continued with integrations and further specialised in verticals on an international scale. We are also seeing a continued demand for hardware such as handsets and headsets as end users across a range of sectors look to upgrade their technologies. In the pipeline in 2024 we have a Fixed Mobile Convergence and a PCI compliance solution. From March, PCI 4.0 is moving to an evidence-based model and we have pre-empted this and have a specific solution designed to address the changes in regulations. Sustainability will also be a constant topic for us.
JAY BALL
CEO, FLOTEK
Our 2024 focus is integrating our acquisitions. We aim to add £5 million in revenue and are well-placed to capitalise on opportunities arising from smaller firms seeking exits before 2025. Our optimism stems from the promising investment climate within our target markets. Potential roadblocks include is the difficulty in securing funding for acquisitions, which has become more challenging over the past 18 months, and the demands on our time and resources as we grow. In 2024, I believe telco firms that have yet to incorporate IT services into their offerings may face challenges in both customer retention and growth.
RYAN MARTIN,
INDIRECT SALES MANAGER, ANS GROUP
Finding the right talent will continue to be a challenge. Skills and expertise are the new currency and 2024 will see the rise of real strategic partnerships. With the PSTN switch-off, FTTP and persistent talk around AI driving customers to look deeper at what is available to them, we’ve seen an appetite for digital transformation services in the channel. Partners should immerse themselves in new markets like cloud, security, and digital to bring more value to their business and customers. Since launching the ANS Partner Programme in 2023 it has gathered significant pace. We will continue to develop this.
ANDY JONES,
CRO, TELXL
SMEs are recognising that the opportunity to displace larger competitors lies in the quality of customer experience provided. Having the support mechanisms and tools to deliver exceptional experiences across the mediums that customers expect is now imperative. So we have built a UK-based team of sales, product development and support specialists to deliver a toolkit for the channel. There remains an opportunity to educate this segment through a more consultative approach so that both established and informal contact centres can empower agents and team leaders.
SOHIN RAITHATHA
CEO, REDSQUID
The acquisitions of Covue and ACR Networks, alongside strides in becoming more sustainable, have enhanced our services and reinforced our commitment to ESG and CSR. Looking ahead we aim to enhance the market by introducing cutting-edge technologies with the implementation of AI, while ensuring the best customer experience is met. Our optimism is sky high, but there will be challenges both for Redsquid and the channel. We see collaboration and embracing innovation as the pathway to setting new industry standards with a sustainable mindset.
DAN PROCTOR
DIRECTOR, B2B APM
Last year we were able to construct a financial vehicle that provides scalable, future-proofed and cost-effective solutions to maximising cash-flow for the channel. We are now scaling up and our key objectives for 2024 includes the launch of a digital platform. The economy will be more challenging this year. The Insolvency Service reports a rise in company insolvencies and a continuation of this trend will cause the whole channel difficulties. A big opportunity lies in embracing the green agenda and providing sustainable, long-term solutions.
MALEK RAHIMI
MD, BDR GROUP
Our objectives for 2024 include replicating the success of our 2023 acquisition strategy and expanding our market presence. I am optimistic but recognise that the business landscape is dynamic and presents challenges. Potential roadblocks could include economic uncertainties, regulatory changes and unforeseen disruptions – especially with the PSTN Switch Off fast approaching (which we are prepared for). The ongoing evolution of remote work, the rise of 5G, and the increasing reliance on robust cyber security measures also present significant opportunities. BDR will explore partnerships and collaborations to stay at the forefront of industry trends.
IAN CLEAVER
MD, CONNECT365
Our biggest achievement in 2023 was formalising our reseller channel. We aim to increase from eight resellers to 30 by the end of 2024 and can’t see any roadblocks. The biggest opportunity for Connect365 is that we have found a gap in the market. We have big plans and aim to double our turnover and profit in one year.
DAVE HUTTON
CHIEF GROWTH OFFICER, FOURNET
For FourNet, 2023 has been a year of growth, strategic acquisitions and enhanced services. In April, we brought Nowcomm to enhance our cyber security and network infrastructure offering to customers and we ended the year with the acquisition of global network specialists 01T, giving us the ability to provide our critical infrastructure customers with end-to-end fully resilient network connectivity. Our enlarged business has new skills, expertise and services, and we have switched from being technology-led to CX-led through our customer experience team and their data-driven, outcome-led diagnostics. These changes put us in a great position to take on new opportunities in 2024.
JAMES SHRAGA
SALES DIRECTOR, FIDELITY GROUP
Our 2023 standouts were bringing payment solutions to the channel and residential VoIP solutions for new channel partners. We have also benefited from customers investing in network resilience and stronger remote collaborative working. In the year ahead we will develop into new markets with two new channel-focused products – a SaaS workflow, contract and product management platform, and an IoT connectivity management system. But we must be wary of global uncertainty and economic conditions. The big switch-off continues to drive opportunities, while software solutions and self-management continue to be a major driver for our channel and their customers.
HARRY BOWLBY
MD, SPITFIRE
In 2024 we will be talking about the PSTN Switch Off coming next year, so the pressure is now on for businesses to act now and make the shift to all-IP. This remains a significant opportunity for our business as we can make this shift seamless and without disruption for UK businesses. 2024 is about establishing our One Network solution in the UK, and delivering first class connectivity, better security and flexible and innovative billing plans, to SME, enterprise and IoT customers across the UK. We don’t anticipate any major roadblocks. We have been developing our One Network solution for over a year and the response from new and existing customers and our partners has been overwhelmingly positive.