TD Synnex’s Jaideep Malhotra on maintaining market momentum, AI and services play

AI opportunities, high-growth technologies like hybrid cloud and security, addressing the skills gap and flexible financing solutions are some of the areas TD Synnex is focusing on to maintain market momentum in the year ahead.

TD Synnex APJ President Jaideep Malhotra recently discussed the path forward for the distributor in the evolving landscape and trends that will impact its market play during a Q&A with ARN.

What are the top priorities for Tech Data this year?

Jaideep Malhotra (JM): Three key trends are currently driving the global technology sector. First is the opportunity offered by AI. We anticipate positive shifts impacting every segment, from AI-enabled PCs to infrastructure, hybrid cloud and software.

Second, the increasing demand for high-growth technologies such as hybrid cloud, security, data analytics, and AI has led to a skills gap arising from their adoption, and our focus is on shortening that gap while simultaneously accelerating IT channel partners’ go-to-market.

Lastly, we have invested in new offerings, like Tech Data Capital – flexible financing solutions – in India, Singapore and Australia, to enable partners to adopt new technologies and grow their business swiftly. Based on our research, 59 per cent of APJ partners find financial scalability challenging. However, partners can extend their overall purchasing power through flexible financing programs not usually offered by traditional lenders.

It has been just about two years since Tech Data and Synnex merged, how has this shaped Tech Data’s focus on its vendor portfolio, channel partnerships and the way in which it conducts business in various markets?

JM: The merger solidified our position as one of the world’s top IT distributors and solutions aggregators. Our expanded global footprint and breadth of resources empower us to deliver comprehensive solutions across the tech landscape and enable us to enhance our systems and capabilities to become a value-added distributor for strategic technologies.

In Asia Pacific, we have grown our footprint to include Japan and are focused on creating new opportunities for vendors to expand and enter new markets with us. We have signed over 20 new vendors in 2024 in APJ – a testament to our continued growth.

What are some of the key investments that Tech Data is making in APJ?

JM: Our investments are focused on maintaining the momentum we have built in high-growth technologies. We are investing in data analytics, AI, hybrid cloud, and security to ensure partner growth outpaces market growth while strengthening our end-to-end portfolio. Our launch of Destination AI—an enablement resource—is primed to guide and help channel partners scale their services in response to AI as a fast-growing segment in the region.

We are also investing in automation, analytics, digital platforms, marketplaces, and commercial excellence to help vendors and partners sell more efficiently and continue to explore inorganic growth opportunities, such as our acquisition of Orca Tech in A/NZ.

Essentially, our ambition is to be a comprehensive, one-stop resource for partners to access unified multi-vendor offerings, simplify the complex, accelerate go-to-market and be successful.

What are some of the key technology trends that are shaping your approach in the market?

JM: Demand for AI-enabled devices and applications is driving the need for computing, storage, security, and analytics. With 150 million AI-enabled PCs projected to ship globally by 2025, we see a tremendous opportunity. That’s why we are expanding our data and AI portfolio – this includes our Copilot for Microsoft 365 program, which engages over 2,000 partners.

Our Direction of Technology report for APJ shows that 40 per cent of partners plan to offer AI/ML solutions over the next two years. These partners are also prioritising storage, security, and infrastructure – key areas we call High Growth Technologies.

We have been focused on growing our capabilities, solutions and offerings related to these areas over the past couple years, as seen in the double-digit growth of High Growth Technologies as a portion of our overall revenues.

How is Tech Data supporting the changing priorities of the channel?

JM: We are supporting the channel through multiple strategic initiatives. Beyond AI, channel partners are telling us they want to start exploring services – from only 12 per cent in 2023, the number of partners offering professional services is expected to rise to 60 per cent in 2026. Our cloud, security, and managed services solutions are empowering partners to deliver integrated offerings, accelerating their go-to-market timelines, and enhancing their ability to meet the channel’s evolving needs.

Are there any specific requirements partners are seeking the most from distribution models? In your opinion, how has the role of distribution shifted over the years?

JM: Partners are eager to start and scale their AI journeys, but many do not know where to begin. Through Destination AI, we are helping partners realise comprehensive and strategic AI adoption across all levels, regardless of their current stage in their AI journeys.

Unlike traditional IT distributors who operate in the box-mover linear model and focus on inventory financing and logistics management, we have pivoted to solutions aggregation to funnel benefits gained from industry evolutions directly into the IT ecosystem.

We connect all stakeholders from cloud providers, software vendors, and OEMs to reduce solution-building costs and accelerate time-to-market for resellers. We eventually see this becoming an ecosystem orchestration play. Our ability to swiftly respond to market demands and ramp up innovation will allow partners to increase revenue and expand their consumer base.

How are you supporting partners in taking advantage of these market trends and opportunities?

JM: We simplify the complex. The domino effect caused by global industry trends, such as the IT skill shortage, gaps in technology adoption, and more, necessitates our assistance.

This is why we have designed offerings such as Tech Data Capital, Tech Center of Excellence, and Destination AI. It provides partners all they need to accelerate their growth, capture new opportunities, and succeed. By delivering value-added services to the channel, we contribute to the growth of the IT ecosystem holistically.

What makes the APJ market standout in comparison to other markets that Tech Data operates in?

JM: Economic growth and stability, along with strong emerging markets that offer unique consumer dynamics, enhance APJ’s appeal as a business growth region. Furthermore, APAC tech spending is projected to grow 7 per cent annually, reaching US$876 billion by 2027, with AI-augmented software and services outpacing other IT categories.

Governments in key markets are also making significant investments to develop sovereign AI capabilities, creating major prospects for progress in this underutilised market. Our strong global positioning enables us to support tech adoption at the national level across the region.

Despite global headwinds, Asia’s investments in infrastructure and advanced solutions are fuelling innovation, offering us strong growth opportunities to drive our business forward.