Several interesting pieces of research were published this week. They included reports from A10, ConnectWise, Deloitte, Ivanti, PDI Tecnologies and Xero. Enterprise Times also published an article that looked at a recent report by NetApp. That report found that IT decision-makers are struggling with the dilemma of navigating cloud requirements coming from digital transformation and AI initiatives, and the added complexity of building multi-cloud environments.
A10
A10 published the Global Communication Service Providers: Market Growth Fuels Security Investments report. The report looks at CSPs’ priorities, expectations, and perspectives and is based on a survey of 2,750 senior CSP IT professionals conducted by Opinion Matters.
The report highlights four key insights:
- Network security is becoming more sophisticated
- Growth is expected and is driving investment plans
- Providers are working to address the digital divide
- Enterprise cloud migration has a positive impact
The key findings from the report include:
- Network traffic volumes trended up 99.6%
- Providers are expanding networks to close the digital divide – 69%
- Firms expect to fully transition to IPv6 in the next 2-3 years
The top three priorities were:
- Upgrading firewalls -28%
- DDoS detection and monitoring – 27%
- Ransomware and malware protection services – 26%
The top business opportunities are:
- Build or Improve a DDoS Cloud Scrubbing Service – 26.9%
- Globalization Will Enable Us to Enter New Markets – 26.6%
- Continued Increased Demand for Internet and Network Bandwidth – 26.5%
Anthony Webb, Vice President of A10 International, said, “These predictions align with the sustained traffic growth we’ve seen in recent years. Although the pandemic created a one-off burst in growth which we witnessed in our 2021 survey, with 98% of UK CSPs surveyed stating this, we are now seeing more sustained patterns emerging which show continuing growth at a considerable rate. Likewise, these positive growth levels are creating both the urgency and the confidence for CSPs to undertake substantial investment projects.”
The report also gives an in-depth breakdown by region with data presented for the USA, the UK, Southern Europe, Benelux, the Nordics, Central and Eastern Europe, Germany, India, the Middle East and the combination of Brazil with Mexico.
ConnectWise
Service Leadership, a ConnectWise solution, released its Service Leadership Index 2023 IT Solution Provider Compensation Report findings.
The report reveals a wealth of information about the W2 (T4 in Canada, P60 in the U.K., Income Statement in Australia, and Gross Earnings in New Zealand) compensation of staff and management level technical, sales and administrative positions common to TSPs. The report also includes an analysis of headcount ratios between the positions in lower – and higher-performing TSPs and compensation trends over time, including a % increase in 2022 and a budgeted % increase in 2023.
Peter Kujawa, VP, Service Leadership & TSP Evangelist, commented, “Nowhere else will TSPs be able to find this kind of TSP-specific data and analysis on the market pay in over 50 common TSP positions. Owners and principals now have access to the data they need to determine if they are paying their employees what they should be to recruit and retain them.”
The report revealed that more profitable TSPs tend to pay less for staff and non-owner manager positions than less profitable TSPs:
- Staff positions: The Best-in-Class (BIC) paid approximately 9% less than the Median and 13% less than the Bottom ¼ (the least profitable TSPs)
- Managers: BIC paid approximately 9% less than the Median and 17% less than the Bottom ¼
Kujawa added, “There is a widespread belief that because a TSP is more profitable and financially successful, they pay their employees more, but the data proves the exact opposite is true. The least profitable firms pay more for staff and management positions, tie-less of that pay to incentives, gave the largest increases in 2022 and are planning to do the same in 2023. The data is compelling as to why some companies are doing well, and others struggle.”
Deloitte
Deloitte conducted a poll that found only 45.7% of professionals are confident in the ability of their organizations’ financial reporting teams to gather and report on environmental, social and governance (ESG) financial metrics for regulatory compliance purposes. The poll also found that few organisations (16.4%) have an ESG controller and only 7.2% plan to hire one within the next year.
Dina Trainor, Risk & Financial Advisory Managing Director at Deloitte & Touche LLP, said, “It’s concerning to see so few respondents reporting confidence in their ESG reporting as we await new U.S. regulatory guidance on climate disclosure reporting requirements. Now is the time to take a close look at your organization’s current ESG reporting capabilities and protocols and undertake improvements if needed. The good news is that there are clear actions organizations can pursue that have a strong correlation to building trust in ESG reporting.”
Deloitte’s sixth “Automotive Supplier Study” examines these impacts on the supplier landscape as it braces for the potential of continued disruption and fundamental change. Key findings included:
- Automotive component segments tied to electric vehicles (EVs) continue a strong upward trajectory. The total revenue for electric drivetrains and battery and fuel cells segments is expected to increase 245% from 2022 to 2027.
- Amid the impact of multiple obstacles over the past three years and the compounding effect of an inflationary environment, some automotive suppliers will be unable to continue to invest and grow, which may lead to greater industry consolidation.
- Strong government incentives aim to reduce dependence on globally integrated supply chain structure and could force a rethink of existing supplier relationships and material sourcing strategies.
Raj Iyer, Managing Director of Deloitte Consulting LLP, commented, “Adapting to new mobility structures and electric vehicles in and of itself can be an enormous challenge for the automotive sector. When combined with sustained material volatility, shifting consumer demand, hyperinflationary economic environments and rising geo-political considerations, to name a few, you start to realize how resilient the global automotive industry seems to have been these past few years. As many auto manufacturers look to use the transition to EVs as a catalyst to reimagine their manufacturing footprint, suppliers may be faced with hard decisions to determine where on the future value chain they are most likely to grow or, in some cases, survive.”
Ivanti
A new Ivanti Wavelink report shows that 85% of supply chain professionals plan to invest in technology to increase productivity next year. Labour issues dominate supply chain concerns, with respondents citing time to train the workforce (52%) and high turnover (50%) as the biggest challenges.
To help address these concerns, organizations are embracing technology and automation to enhance worker experience and productivity. Around 85% of respondents plan to invest in new technology and/or build upon existing technology in the next year, with more than half (53%) indicating they intend to increase automation by up to 30%.
Brandon Black, Senior Vice President and General Manager for Ivanti Wavelink said, “With the current shortage of available labour, many industries are better equipping their teams with technologies that help them optimize workflow. By embracing technology to help streamline operational efficiency, organizations can increase productivity, reduce costs, save time, and improve customer satisfaction. Additionally, by implementing technology and automation that uses real-time data, companies can gain end-to-end visibility that allows them to evaluate information more efficiently and be more agile in mitigating issues.”
PDI Technologies
PDI Technologies published the third Business of Sustainability Index (“BOSI”). There has been a steady growth of Americans, indicating they would pay more for sustainable products. In 2023, the figure was 68%, up 2% from 2022 and 4% from 2021.
Young people are especially open to paying more for sustainable products, with 77% of Gen Z (ages 18-26) and 72% of Millennials (ages 27-42) saying they would do so. Parents were also prepared to open their wallets for sustainability, with more than three-fourths (76%) noting they would pay more.
When asked about purchasing gasoline specifically, 64% of Americans said they would pay more at the pump if the carbon emissions were offset with sustainability efforts, such as planting trees. That number was even higher for Gen Z (76%), Millennials (67%), and parents (74%).
Brandon Logsdon, President of Consumer Engagement PDI Technologies, commented, “Over the past three years, BOSI has measured Americans’ accelerating demand for sustainability to help companies better understand how to meet those evolving needs. The data is clear: Consumers overwhelmingly want sustainable products and are willing to pay more for them. Companies that understand sustainability as a strategic business asset are well positioned to gain market share and grow faster than their competitors.”
Xero
Xero launched a report revealing that overall, small business owners’ well-being is below the general population’s. It serves as a reminder of the myriad challenges small business owners are dealing with in 2023 – including high inflation, slowing economic growth, concern about staff wellbeing and general uncertainty about the future.
The report looked at the happiness index across seven countries:
- South Africa – 65
- Singapore – 64
- New Zealand – 63
- Canada – 62
- United States – 61
- Australia – 60
- UK – 56
Rachael Powell, Chief Customer Officer, Xero, commented, “Despite rising awareness of wellbeing in all facets of our lives, there has been little data about small business wellbeing beyond financial measures,” said “Our research highlights what we already suspected – that small business owners are experiencing many wellbeing challenges at the moment, coming at them from a variety of sources.”
The Xero research also highlighted differences between younger and older small business owners. In all seven countries studied, small business owners under 30 were more likely to be experiencing financial distress than small business owners over 50. Similarly, small business owners under 30 are likely to feel more stressed about their employees’ well-being than owners over 50.
