Year-over-year total B2B technology reseller channel sales were challenged, declining by 9%
CHICAGO, May 31, 2023 /PRNewswire-PRWeb/ -- According to Circana, formerly IRI and The NPD Group, sales revenue in the U.S. B2B technology reseller channel fell 9% year over year in the first quarter (Q1) of 2023. Software sales revenue increased 6%, sluggish hardware sales, specifically devices, drove the majority of the decline. Sales for the quarter remained 10% above Q1 2019.
"Sales cycles for technology products were pulled forward during the pandemic and, as a result, spending in the B2B tech channel is shifting to other needs," said Mike Crosby, executive director and B2B technology industry analyst for Circana. "While reseller channel sales are likely to improve in the second half of this year, we expect the timing of device refresh cycles, coupled with technology needs related to the sunsetting of Windows 10, to be key growth drivers in both 2024 and in 2025."
Despite challenges on the hardware side, Circana's Reseller Tracking Service data, which reports sales information from the top national solution providers and B2B e-commerce sites, shows nearly every commercial software category experienced sales revenue growth year over year in Q1. Security information and event management (SIEM) and data protection and recovery software saw the largest gains, each increasing 17%. Cloud platform services also continued to grow, with sales revenue gains of 21% this quarter.
"Companies are downshifting their IT spend and delaying major device refreshes until economic conditions begin to normalize," noted Crosby. "While hardware purchases are under greater scrutiny, investments in commercial software and cloud platform services are gaining momentum as they are instrumental in keeping businesses safe and connected."
About Circana
Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data and deep expertise, we provide clarity that helps almost 7,000 of the world's leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand and outpace the competition. Learn more at http://www.circana.com.
Media Contact
Janine Marshall, Circana, 5166252356, [email protected]
SOURCE Circana
Share this article