Solution Providers See Growth Opportunities Amid COVID-19 Pandemic, Even As Customer Uncertainty Looms: IPED Study
While it’s unclear what the rest of 2020 will bring for customer spending, opportunities abound to expand recurring-revenue engagements such as managed services and cloud, according to a new study of solution provider businesses.
The first quarter was a record quarter for many in the channel, with surging demand for solutions to enable work-from-home and distance learning amid the COVID-19 pandemic, according to the IPED study. However, solution providers expressed major concerns about the current quarter. There is also widespread uncertainty in the channel about the third and fourth quarters of the year, the study found.
“I continue to see our customers looking for capital preservation,” said Todd Pittman, CEO of Blue Bell, Pa.-based Anexinet, No. 218 on the 2019 CRN Solution Provider 500.
“Everybody wants to ensure that they have the capital required to keep their business operating through this uncertain time. And so I think that will continue to drive more conversations around leveraging the cloud, pay-as-you-go models, GreenLake,” Pittman said, referring to Hewlett Packard Enterprise’s GreenLake pay-per-use offering.