Report: Major gaps in channel readiness for AI-driven networking in Australia

Many partners are looking to develop AI capabilities but face significant barriers to transformation.

A readiness gap exists across AI networking, with both partners and customer organisations not yet ready to seize the opportunities AI promises, according to a new Westcon-Comstor report.

“The research underscores the urgency for Australian channel partners to bridge the gap between customer demand and AI-ready networking capabilities,” said Phil Cameron, MD, Westcon-Comstor Australia.

Almost two-thirds of Australian partners (59 percent) are developing their AI capabilities, yet three-quarters (77 percent) cannot yet design and deliver AI-ready networking solution, according to the report found.

At the same time, only 30 percent of partners say customer network infrastructure is prepared and optimised to support AI workloads, according to the multi-country survey of senior decision makers at 500 partners including in Australia.

Cameron said partners need to approach AI-readiness as both a technical and strategic evolution. In particular, he nominated intent-based networking, zero-trust architecture and AI-powered observability as areas where partners need to up-skill.

“But just as critical is cultivating the mindset to act as strategic advisors — that means understanding customer pain points, aligning solutions to business outcomes and staying ahead of the curve,” said Cameron.

Where are the growth areas in AI-driven networking?

Australian partners are looking to level up, with almost 60 percent developing AI capabilities and another 15 percent exploring AI while offering traditional networking services. This is broadly on par with partners in Singapore, Spain, UAE and the UK, the survey showed.

Most partners in Australia report they are already supporting customers in certain aspects of network transformation such as visibility, security and automation.

However, only a minority are active in emerging areas such as intent-based networking (42 percent) and zero-trust architecture (36 percent).

Partners say integration with existing systems, security and compliance are significant barriers to advanced transformation.

“Many partners are still exploring AI while delivering traditional networking services, and that creates hesitation,” said Cameron.

There’s also uncertainty around which technologies to bet on, and he urges partners to lean on distributors for training and building repeatable services.

Customers are also struggling with internal skill gaps and uncertainty around technology choices – creating an opening for partners to provide the skills and capabilities to step in as strategic advisors.

“The ability to deliver intelligent, adaptive networks is becoming a critical differentiator,” said Cameron.

Most respondents (58 percent) identified AI-enhanced network security analytics as the single biggest potential growth area — becoming a business-critical capability.

“Security is the frontline of trust and AI is redefining how threats are detected, analysed and mitigated. AI-enhanced network security analytics enables partners to offer proactive, intelligent threat detection and response,” he explained.

In addition, partners also pointed to edge-to-cloud data routing and optimisation, AI-powered network observability and diagnostics and autonomous networks as high-growth areas.

To start to capitalise on opportunities, Cameron recommends partners identify the area that aligns best with their existing strengths and customer needs and go from there.

“This is a good start. Focus breeds momentum,” he told CRN Australia.