AI & cybersecurity lead trends in APJ technology report

Tech Data has published its 2024 APJ Direction of Technology Ecosystem Report, highlighting key trends within the APJ technology landscape.

The report provides insights into the dynamic changes and emerging trends across the Asia-Pacific and Japan (APJ) region, particularly focusing on areas such as artificial intelligence (AI), cybersecurity, and the shift toward service-centric business models.

AI adoption is prominently driving growth across the region, with 84% of partners acknowledging requests for proof-of-concept concerning Generative AI (GenAI). Furthermore, 36% of these partners are setting plans to offer AI solutions in the coming two years, with a focus on GenAI solutions (52%), AI services (48%), and AI-enabled devices (35%).

As AI continues to shape the technology landscape, cybersecurity remains a top priority. The report notes that 43% of infrastructure-focused partners are keen on providing security solutions over the next two years. This inclination is driven by heightened threats and AI's dual role in security—as a tool for protection and as a potential target.

The ongoing technological evolution has also spotlighted a talent gap, especially in AI, security, and data analytics. The report indicates a rise in demand for AI skills, increasing from 15% in 2023 to 27% in 2024, underscoring the need for strategic hiring and skill development in these areas.

Despite AI's rising prominence, traditional core technologies such as networking, endpoint devices, security, and servers remain crucial revenue drivers. In 2024, endpoint devices are poised to lead technology sales within the APJ region, supported by innovations such as AI PCs.

Jaideep Malhotra, President of TD SYNNEX, Asia Pacific & Japan, commented on the findings: "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."

Malhotra further acknowledged Tech Data's strategic positioning within the IT ecosystem, noting, "With our unique position at the center 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."

The report reflects input from over 1,000 technology resellers, systems integrators, service providers, and managed service providers, involving more than 287 respondents from the APJ region. This comprehensive survey contributes to understanding the evolving demands and supply dynamics, as well as channel activities within the technology sphere.