Artificial intelligence (AI) and cybersecurity have emerged as key business movers in the technology channel, Tech Data said Tuesday.

The TD SYNNEX company said in a statement that its latest technology report showed that AI adoption is accelerating, and customers are leading this demand, eager to leverage AI for growth and efficiency.

This is evident as 84 percent of partners reported receiving Generative AI (GenAI) proof-of-concept (POC) requests.

To meet this surge, 36 percent of partners plan to offer AI solutions within the next two years, focusing on GenAI solutions (52 percent), AI services (48 percent), and AI-enabled devices (35 percent), signaling the technology’s critical role in business transformation.

The report also showed cybersecurity continues to dominate as the top technology priority, with 43 percent of infrastructure-focused partners planning to offer security solutions in the next 24 months.

The growing sophistication of threats and the dual role of AI—both as a tool for security and a target requiring protection—are driving demand for advanced solutions.

Partners recognize the critical need to safeguard data integrity while tapping into the lucrative security market, it said.

Amidst rapid tech evolution, partners are also struggling to fill critical roles in high-growth sectors like AI, security, and cloud.

AI skills, in particular, have surged in importance, rising from 15 percent in 2023 to 27 percent in 2024.

With security (30 percent), AI/GenAI/Machine Learning (27 percent), and data analytics among the top skills in demand, partners are focusing their hiring strategies in these areas to meet market demands and support future growth.

While AI is capturing attention, core technologies such as networking, endpoint devices, security, and servers continue to remain the primary revenue drivers.

Endpoint devices, despite market challenges, continue to be a significant category, with AI personal communications services (PCs) set to fuel further growth.

In 2024, endpoint devices lead technology sales in Asia Pacific and Japan (APJ), followed closely by networking and security, with AI/GenAI/ML coming in behind as a growing but secondary focus for 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,” said Jaideep Malhotra, President of TD SYNNEX, Asia Pacific and Japan.

The report also showed many are increasingly focused on expanding their service offerings, with managed services and professional services expected to account for 57 percent and 58 percent of their business portfolios, within the next three years.

While AI’s rapid adoption continues to reshape the tech landscape, core technologies remain a top priority for partners, with sustained demand for security solutions emphasizing their interconnectedness to AI.

The third-annual Direction of Technology report is based on a survey of more than 1,000 technology resellers, systems integrators, service providers, and managed service providers from over 60 countries globally, with 287 respondents from the APJ region.

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