Edge computing and artificial intelligence are in increasing demand from customers, which provides vendors and channel partners alike with plenty of sales opportunities, as Ian Jeffs from Lenovo explains.
Lenovo is a market leader in PC and has recently launched new products with the aim of retaining that status (see News in the Channel magazine found here). As Ian Jeffs, UK&I country general manager at Lenovo Infrastructure Solutions Group, explains, the market is constantly changing, especially with the impact of edge computing and artificial intelligence (AI) – but this means there are new opportunities for vendors and channel partners.
What has Lenovo brought to the market this year and what has the response been from the market to them?
Ian Jeffs: We are proud that we have maintained the number one market leadership position in PC for more than a year in a pretty challenging market. We have maintained our ‘channel first’ approach, offering new opportunities and resources to our valued partners, and it has delivered results.
More than 90% of UK sales now come via the channel and about 1,400 UK partners have expanded their businesses to offer the full breadth of Lenovo’s portfolio. On average across EMEA, we have gained 250 resellers as pan-Lenovo resellers, and we have seen more than 1,000 customers expanding their business from one segment of the Lenovo portfolio to others. In the infrastructure market, we took market share against a challenging backdrop. Our Services business in the UK channel has grown 26% year on year and our mobile business has grown at least 70%.
How will edge computing and AI continue to influence opportunities for channel partners?
IJ: Both edge computing and AI offer enormous opportunities for channel partners, and that is only going to increase. Many sectors from healthcare to retail are eager to bring computing to the data using edge: most of the compute power of tomorrow will be installed at the edge. This offers enormous opportunities for partners to deliver specialist edge solutions, which will form the backbone of many digital transformations.
Channel partners are also eager to ride the AI wave and are currently figuring out what it can bring to their customers, as well as who to work with and which vendors to choose. It’s about helping customers. The role for the channel is to show customers how they can drive real business impact with AI, to make it real and practical and to highlight the benefits of the technology.
How can vendors work with partners to ensure they can help customers to realise the full potential of such technologies?
IJ: The possibilities of AI and edge for vendors are enormous, but it’s key to work closely with partners to ensure customers grasp the full potential. The big challenge for IT vendors in the coming year is to inspire channel partners with the confidence to unlock the imaginations of their customers in terms of what AI can deliver.
IT vendors can help partners to understand who to work with, what business models to adopt and which solutions to opt for. In turn this can inspire customers to start their AI journey. Lenovo has been investing in AI for years, with four Lenovo AI centres of excellence globally, and the AI Innovator programme offering 150 industry-based solutions across sectors including retail, healthcare and manufacturing, which have been tested and can be implemented on Lenovo hardware.
Likewise, we have one of the best edge portfolios in the industry, all purpose-built and secured, so we can help partners meet what demand is out there.
How are customer demands changing regarding edge and AI computing?
IJ: Both AI and edge are changing what customers want, and challenging channel partners to work in new ways and grasp new opportunities. Because edge is integrated into vertical solutions, it requires specialist skills and understanding of the customer’s industry. We are no longer in a world where you can have a single design and setup. Partners must understand the customer’s business, what the drivers are, what the privacy and security implications are. Customers often don’t know about all this, and that represents an opportunity for the channel.
The major roadblock to wider AI adoption is that even if companies buy the best software and hardware, there can still be issues in unlocking the potential of the technology in terms of installation and skills. Partners will be crucial to helping customers understand and get to work with this technology.
Are we also seeing a transition in customer demand from ‘one size fits all’ solutions to a hybrid or multi-cloud strategy?
IJ: Hybrid and multi-cloud are driving IT modernisation across all sectors, and this is changing the role of resellers and the landscape of the channel. Cloud service providers are taking over some capacity, with some business requirements that would have previously been done in the data centre moving to the cloud.
Customers realise that adopting a one-size-fits-all approach carries risks, specifically that they might be outpaced by more agile competitors. This multi-cloud trend will continue and will move from the large enterprise market into the small and medium business space. Resellers are now helping customers to enjoy the benefits of hybrid cloud, creating and managing cloud infrastructure, and will increasingly play a crucial role in offering customers the choice of cloud vendors and managing digital transformation projects.
Channel resellers are seeing new opportunities from multi-cloud and are offering everything from end-user services to platform to infrastructure.
How important are sustainability considerations for customers?
IJ: Sustainability is becoming an increasingly important consideration for customers in all sectors. As sustainability grows in importance, paying attention to the impact of technology becomes more important, because technology can conflict with ESG goals, whether that’s in the energy demands of technologies such as AI or the way that technology is recycled at end of life.
How can vendors and partners help customers to become more sustainable in their products and operations?
IJ: Sustainability is an area where Lenovo can really help partners to deliver for customers. We believe that technology companies have a responsibility to help save the planet, and Lenovo has long been committed to reducing carbon impact, with a commitment to reach net zero greenhouse gas emissions by 2050. Innovations such as Neptune liquid-cooling technology can help customers hit sustainability goals, being far more efficient than traditional air cooling.
How is Lenovo continuing to enhance its channel offering?
IJ: Our goals with our channel offering in the coming months are to launch new certifications, new partner levels and to encourage partners to sell broader parts of our portfolio. Lenovo also aims to build on its recognition from Canalys as a Champion in the 2024 EMEA Titans Channel Leadership Matrix, as well as building on our Lenovo 360 Circle in EMEA to drive sustainability alongside our valued channel partners.
Lenovo 360 Circle is gaining in popularity with 130 partners joining – what is its success down to and what are the benefits of joining?
IJ: We’re pleased that so many new partners have joined Lenovo Circle in EMEA, and this is an area that we’re aiming to build on further. The success of Lenovo 360 Circle, which already has 21 partners signed up in the UK including big resellers such as Logicalis, Ingram Micro and Softcat, is down to its usefulness in a time where customer demand for sustainability has never been higher.
Lenovo 360 Circle offers useful resources, tools and networking opportunities, which can include networking with other partners, to help partners drive their sustainability journey, regardless of where they are on it.
How do partners get involved with Lenovo 360?
IJ: Signing up to Lenovo 360 takes less than five minutes through our online form, and decisions are made very quickly, with approval in two days. Partners are central to Lenovo’s success, with 80% of Lenovo sales delivered through channel partners worldwide, so we ensure that signing up and getting started is as easy as possible.
What are your expectations for how the market will develop in the next 12-18 months?
IJ: I’m very positive about the outlook for the channel in the coming months. AI is not new to the channel, but the opportunities for resellers are just beginning. The rapidly accelerating appetite for AI is helping to create an environment where knowledge and skilled resources have never been more important.
Vendors like Lenovo have deep vertical expertise in different AI solutions across industries such as manufacturing, healthcare and retail, but partners have a central role to play in installing and managing these solutions as well as communicating the potential of AI for customer businesses. For channel partners, you can really thrive in that space: build your value proposition, focus, adapt and be flexible, and then make money.
What does Lenovo have planned for the next 12-18 months in terms of product development and support for partners?
IJ: Lenovo is working closely with partners including Nvidia, Microsoft and Qualcomm to build a next-generation solution portfolio and product roadmap with a view to driving opportunities in AI for partners and customers. Lenovo is also investing in innovations around AI-powered edge computing and hybrid cloud and aims to accelerate IT modernisation.
For partners, the key challenge of the coming months will be to ensure customers have the right mix of skills and technology to get the most from AI, and programmes such as Lenovo’s AI Innovators program will help partners connect to the right AI and hardware experts to ensure customers get the most
out of AI.
