IDC has unveiled significant shifts within the technology distribution landscape, largely driven by artificial intelligence’s (AI) burgeoning influence.
In its North America Distribution Tracker (NADT) report, IDC said distributor revenue for the second quarter of 2024 remained steady at $19.5 billion. However, this apparent stability belies notable changes across various product segments.
The PC sector, propelled by AI, has reclaimed its position as the leading product group, generating $3.9 billion in sales and demonstrating a robust 9.9 per cent year-over-year growth. AI-powered PCs have been instrumental in this resurgence, contributing 17.8 per cent of Q2 PC revenues and showing an impressive 33 per cent growth compared to the first quarter.
Apple and Microsoft have seen a significant boost in their PC revenues, with AI-powered models contributing 75 per cent and 32 per cent, respectively. This underscores the substantial impact of AI on major industry players.
Software sales have also experienced significant growth, reaching $3.9 billion, marking a 9.6 per cent increase year-over-year.
Leading this charge is software-defined storage controller software, which has seen a 31 per cent year-over-year growth, driven by AI support and hyperconverged infrastructure products. Network security software has similarly flourished, with a 30 per cent year-over-year increase.
Conversely, network infrastructure sales have witnessed a double-digit decline from the record highs of 2023, attributed to the clearing of previous backlogs.
IDC’s Research Vice President of Data & Analytics, Ruth Flynn said: “Market transitions to AI-centric processes will place less emphasis on network infrastructure build-out and more on developing endpoint, software, and storage cornerstones, with associated growth also expected in support frameworks and services.”
The report further highlights a 3.7 per cent year-over-year growth in enterprise infrastructure, driven by the rising demand for processing-centric workloads to accommodate AI platforms. This trend is anticipated to persist as infrastructure evolves to support AI-intensive workloads.
