The Move From Agents to Strategic Advisors
The traditional role of the agent is continually transforming. Channel partners are now expected to be true advisors rather than resell partners, bringing their customers strategic insight, technical expertise, and long-term business value. It's not just about sourcing technology anymore—it's about executing strategy and achieving outcomes.
Successful advisors now build practice areas (e.g., cybersecurity, AI, connectivity) and support the entire customer lifecycle—from design to implementation to optimization.
Accenture's, B2B Buying Study stated that 70% of buyers want partners who understand their business and offer consultative guidance. It has never been more important for partners to deliver on this value.
AI Services are Needed
From cybersecurity to contact centers, AI is shifting from hype to hands-on value. Anurag Agrawal, Chief Global Analyst at Techisle, says partners must adopt AI internally (i.e., eat your own dog food) before building AI-powered services for clients. Those partners who embrace AI internally and understand the shift in the services model are best set to thrive. Those who fail to adapt risk becoming the next Blockbuster.
Beyond offering AI tools, leading partners re-architect how they sell, support, and deliver services—making AI integral to their business models. Cato Networks, Dialpad, and Fortinet shared how AI enhances threat detection, automates customer support, and proactively monitors environments.
According to the latest Salesforce State of IT Report, 84% of CIOs believe AI will significantly improve business outcomes, yet only 11% feel they've adopted it effectively. This is a HUGE channel opportunity.
Addie Finch, VP of Channels, Cato Networks, commented, "We're moving into the third generation of cybersecurity. AI is helping MSPs consolidate services, reduce complexity, and unlock new growth models."
Still not convinced AI is for you? Canalys predicted the Agentic AI market will reach $7bn by 2025, and over $5bn will be driven through the channel.
Data Is the New Differentiator
Top-performing TSDs (Technology Services Distributors) and partners use data science teams and customer insights to drive cross-sell, upsell, and smarter engagement. The bottom line? Data-driven partners outperform. Whether through customer behavior analytics, usage patterns, or sales insights, data enables smarter decision-making and better customer engagement.
Advisors use predictive models to see where cross-sell opportunities lie before the customer asks. This is the utopia of data insights and marries with Forrester's Partner Ecosystem Trends, which states that 71% of channel partners increased analytics usage in 2024 to better understand customer needs.
Forget About the Transaction; Focus on Services
According to Anurag Agrawal, Chief Analyst at Techaisle, 59% of new business is coming through services for partners.
See CallTowers' latest acquisition of Inoria. They have added SIGNIFICANT services expertise to their proposition and are offering partners commission on that opportunity.
However, outliers still exist in the resell market. Softcat, the most prominent IT reseller in the UK, announced a remarkable 19% year-over-year increase in gross revenue, reaching £1.5 billion for the six months ending January 31. This marks the company's strongest first-half performance since 2022, primarily fueled by product resale despite persistent market challenges.
Software and cybersecurity are driving Softcat's growth in software resale, which surged 23% year-over-year and now represents 63% of total revenue. On the hardware side, infrastructure components like networking, servers, and storage climbed 19%, although PC sales continue to lag. Not bad given the UK's sub 1% GDP growth over the past year.
Complexity = Opportunity (If You Know How to Navigate It)
With 5-7 technology partners involved in a typical deal, complexity is the new norm. TSDs and top advisors win by simplifying vendor sprawl, bundling solutions, and acting as orchestrators across the customer lifecycle.
The roles of "practice leads" and multidisciplinary sales teams will become increasingly important. This aligns with the growth of solution selling vs. product selling. Advisors who can simplify procurement and integration will win customer loyalty.
Scott Evars, Co-Founder of Bridgepointe Technologies, said, "The magic happens when you look like a consulting firm, not a product catalog."
