Across the Australia, changing competitive landscapes and consumerism are disrupting businesses and creating an imperative to invest in digital transformation.
Perhaps that is no longer a new concept for the channel to consider but market rhetoric and buzzwords aside, the digital potential of the nation is expanding at a rapid rate, with organisations set to increase spending on new and emerging technologies.
“The industry lacks a clear definition on what digital means but there’s some basic elements that are coming together that sit in our sweet spot,” DNA Connect director Munsoor Khan said.
Despite a market definition lacking, increased end-user appetite for new technologies is providing clarity for the channel, with global businesses set to throw money and budgets at digital transformation initiatives in the year ahead.
Specifically, and according to IDC research, spending will top US$1.2 trillion in 2017, with connectivity services and application development predicted for strong future growth.
It paints a lucrative picture for partners already operating at the leading edge of the market. But according to Khan, key considerations must also be made.
“If you want to embark on a digital transformation journey, then you have to have a reliable and secure network,” Khan said. “We play in the industrial market for example and they do not have that.
“The factory floor has been cut off from the outside world and organisations realise that if they are going to drive efficiencies, reduce costs and increase revenue, they need to get data from the factory floor and into the IT world.”
According to Khan, the first step is creating a network capable of extracting the data.
“We’ve been working on products with that in mind,” he explained. “Strong networking and wireless connectivity has contributed to a strong year of growth for us.”
With over 20 years of channel experience, the Sydney-based distributor specialises in providing solutions that connect devices and things in enterprise and industrial markets, alongside visualising data and monetising insight.
From a technology standpoint, DNA delivers solutions and services around the Internet of Things (IoT), big data, security, performance visibility, enterprise mobility and connectivity.
Such skills and knowledge have helped position DNA as a frontrunner within the IoT market specifically, taking advantage of untapped end- user potential across Australia.
“We’re continually assessing the emerging technologies coming in the market while looking at what our US-based vendors are doing,” Khan said.
“For example, we’re a Splunk distributor and have been very successful with the brand. Splunk excels in security and IT operations but everybody is in that space so we had to bring something different to the table.
“Splunk was also developing capabilities within the IoT space so we researched the market and aligned the technology with our own capabilities. Clearly that market isn’t going away so we’ve started to invest resources and have increased our ecosystem within this part of the market as a result.”
For Khan and DNA, the gamble is already paying off, as IoT expands into mainstream adoption. In 2017, more than 8.4 billion connected things will be in use worldwide, up 31 per cent from 2016, and will reach 20.4 billion by 2020.
According to Gartner research, total spending on endpoints and services will reach almost US$2 trillion this year, with consumer applications representing 63 per cent of total IoT applications during the past 12 months.
“A lot of our competitors have developed cloud marketplaces and obviously the technology is omni- present now in the market,” Khan said. “We decided that we could have a cloud marketplace but what would it add? What would we be bringing to the table?”
Instead, DNA delivers end-to-end solutions within the IoT space, digitising the physical world alongside.
“We can offer strong networking, security and analytics skills because of the vendors we’ve carried,” he added. “Put that all together and it’s a digitising the physical world play.”
DNA’s differentiated approach comes as businesses are on pace to employ 3.1 billion connected things in the year ahead, representing a shift from consumer spending to enterprise deployment.
Subsequently, increased end-user demand creates differentiated market plays, paving the way for new partners to enter the Australian channel.
“We’re seeing new players emerging in the market,” Khan observed. “We still deal with the traditional players but we’re also now dealing with organisations that didn’t even exist three months. We’re working to take these new solutions to market because as a distributor, it’s crucial to remain innovative.”
Through operating at the leading edge of technology, DNA continues to recruit emerging partners within the channel.
But despite expanding its footprint from a partner perspective, Khan said the distributor remains closely aligned with its core partner base in Australia, a base that has seldom changed for over two decades.
“You always work with your core set of partners in the market and then new players come in when new technologies emerge,” Khan observed.