Exploring transformative technologies across the distribution channel market

Over the last year the Unified Communications (UC) and collaboration market has demonstrated resilience and innovation. While global economic uncertainties brought the threat of recession and global supply chain disruptions impacted hardware availability, channel businesses showed remarkable resilience, pivoting towards software-based solutions and prioritising adaptability.

We witnessed a surge in demand for seamless integrations, interoperability, and enhanced user experiences. Cloud-based communication platforms and secure collaboration tools emerged as the frontrunners, emphasising the need for businesses to prioritise flexibility and accessibility in their communication strategies. But where does this leave the channel as we look ahead to 2024?

Well, it’s probably best to start with the technologies and markets that experienced unexpected growth. One example of this was the rapid adoption of Augmented Reality (AR), notably in the virtual and hybrid events space. The increased interest around immersive event technologies caught the industry off guard but for good reason. Following the uncertainty of the last couple of years, it was expected that people would quickly return to in-person events, and whilst this has been true, the speed at which people were moving away from virtual to live events has been slightly slower than expected.

Virtual and hybrid events have seen a marked uptick and attitudes towards the technology are changing, with 47 per cent of consumers believing the metaverse will become widely used in the next decade. This unexpected growth demonstrates the channels’ ability to pivot and innovate in response to unforeseen challenges. It also provides a blueprint for the future of large-scale gatherings and the appetite we’ll see this year for transformative solutions.

Elsewhere, the deployment of cloud-based video conferencing tools is increasing, Zoom’s revenue increased by 6.9 per cent in 2023 and Cisco Webex Calling has 6 million new users since last year. This reflected a huge trend in customers reimagining the way in which their teams meet and collaborate over video. Businesses across the UK have embraced these tools as essential components of their daily operations, enabling seamless communication and collaboration despite geographical constraints. In fact, Microsoft reports that its monthly active use of Microsoft Teams channels has gone up by nearly 200 per cent.

With more people working from home than ever before, cloud-based communication platforms and secure collaboration tools emerged as the standout performers of 2023. Small to mid-range collaboration devices performed very strongly, as businesses moved away from large-scale meetings to equip smaller, more flexible huddle and personal meeting spaces to accommodate the lower numbers of staff who are now in the office at one time. We saw sales of high-end audio-visual equipment for conference rooms drop, highlighting a shift in priorities towards solutions that accommodate the hybrid work model. Latest data from the Office for National Statistics shows the AV market has fluctuated over the past 12 months. These trends indicate that as permanent home office setups increase, there’s a need for businesses to prioritise flexibility and accessibility in their communication strategies.

We’ve also seen cloud communications services such as UC as a Service (UCaaS) and Contact Centre as a Service (CCaaS) gain traction towards the latter stages of the year. On one hand, this can be attributed to the maturity of the products on the market, many of which were hurried along during the pandemic and have taken time to earn the trust of customers. That being said, many customers who knee-jerked into public cloud communications services over the Internet, have struggled with reliability and compliance further down the line. These customers are now looping back to the market, in search of options that meet all their requirements, rather than just address a handful of critical ones.

There are also some important lessons to be learned from the technologies and markets that fell short of their potential. With customers now embracing remote and hybrid working models, there has been less of a need for static desk phones. This has impacted investments in office-based phone communications and last year we saw many customers facing a surplus of desk space, with the associated endpoints now gathering dust on those workspaces. With a shift in the selection of software over hardware, soft client communications are now the order of the day, and it is likely this trend will continue. Organisations will focus on smaller, more flexible endpoints that enable BYOD; bringing the technology to the user on the device they prefer.

Undoubtedly, these insights and strategic customer decisions will inform and shape the strategies of UK channel businesses going forward. After all, identifying the best-performing technologies and markets has always been crucial for understanding the pulse of our industry. The adaptability displayed by the channel is what will position it well for the future; helping it to foster a more resilient and forward-thinking approach to navigating the evolving landscape of collaboration technologies in 2024.