As 2025 approaches, the IT services channel is poised for significant transformations. Industry sectors, particularly managed service providers (MSPs), IT services, and the reseller channel, are evolving rapidly due to the convergence of technological advancements and strategic shifts in business models. This article delves into the key predictions and trends that will shape the future of the IT services channel, focusing on the rise of generative AI, the decline of traditional resellers, the resurgence of Value-Added Resellers (VARs), the importance of ecosystem collaboration, and the adoption of flexible engagement models.
The Rise of Generative AI and Platform Economics
Impact on Technology Value Creation and Delivery
Generative artificial intelligence (Gen AI) and platform economics are set to revolutionize how technology value is created and delivered in 2025. Jay McBain, chief analyst at Canalys, highlights that these changes are reshaping the industry landscape. The current emphasis on ecosystem expansion, where forming strategic partnerships is crucial for thriving in the market, marks a departure from traditional organizational structures. This shift underscores a significant paradigm change, suggesting a move towards interconnected networks of partners who can collaboratively create value.
The shift from traditional models to embracing generative AI and platform economics signifies a fundamental transformation in technology delivery. Companies are increasingly recognizing that success lies in leveraging the strengths of multiple partners rather than relying solely on internal capabilities. This collaborative approach enables organizations to innovate faster, respond to market demands more efficiently, and offer comprehensive solutions that meet diverse customer needs. By integrating Gen AI into their operations, businesses can enhance their product offerings, optimize processes, and deliver services that are more personalized and scalable.
Strategic Partnerships Over Traditional Models
The success of IT services in 2025 will hinge on forming strategic partnerships rather than relying on conventional models. Companies are increasingly focusing on the customer lifecycle, aiming to drive value messaging and positioning to enhance enablement. This approach involves investing heavily in partner communications through various platforms such as roundtable discussions and advisory boards, thereby elevating partner programs from mere sales enablement to strategic growth engines.
By fostering robust communication channels and collaboration mechanisms, businesses can ensure that their partners are well-informed and aligned with their strategic objectives. This collaborative approach not only strengthens the relationships between vendors and partners but also drives more significant value creation for customers. As companies prioritize understanding customer needs and delivering tailored solutions, the role of strategic partnerships becomes even more critical. In this evolving landscape, the ability to build and maintain strong partnerships will be a key differentiator for businesses aiming to achieve sustained growth and success.
Decline of the Traditional Reseller Model
Communication and Sales-Driven Approach
Michelle Hodges, senior vice president of global channels and alliances at Ivanti, predicts the gradual decline of the traditional reseller model. This model is giving way to a more communication and sales-driven approach, where major tech companies prioritize the customer lifecycle to drive value messaging and positioning. The shift towards this model involves investing significantly in partner communications to create a robust feedback loop between vendors and partners, enhancing the overall strategic growth initiatives.
The communication and sales-driven approach places a premium on continuous engagement and interaction, ensuring that partners are equipped with the necessary tools and knowledge to deliver high-value services. By focusing on effective communication, companies can address potential challenges proactively and foster a collaborative environment that promotes innovation and agility. This evolution in the reseller model reflects the broader industry trend towards more dynamic and responsive business strategies that prioritize long-term customer relationships over short-term transactional engagements.
Elevating Partner Programs
The transition towards a communication and sales-driven approach aims to elevate partner programs from mere sales enablement tools to strategic growth engines. By fostering better communication and collaboration between vendors and partners, companies can drive more significant value and achieve better outcomes for their customers. This shift involves creating more integrated and cohesive partner programs that support mutual growth and success.
Elevating partner programs also requires a commitment to continuous improvement and innovation. Companies must invest in training and development initiatives that empower their partners to stay abreast of the latest technological advancements and market trends. Additionally, by leveraging data-driven insights and feedback, organizations can refine their partner programs to better align with evolving customer needs and expectations. The ultimate goal is to build a partner ecosystem that is agile, innovative, and responsive, capable of delivering exceptional value and driving sustained growth in a rapidly changing industry landscape.
Resurgence of Value-Added Resellers (VARs)
Tailored, Value-Driven Solutions
Matthew Grantham, head of worldwide partners at Nasuni, foresees a resurgence of the “V for value” in Value-Added Resellers (VARs). Traditional, mass-market technologies are gradually being replaced by more tailored, value-driven solutions as customers shift their focus towards vendors and channel partners who understand their specific challenges and offer strategic solutions. This trend emphasizes the need for innovative and insightful approaches to technology delivery that go beyond one-size-fits-all offerings.
The demand for tailored solutions is driven by the growing complexity and diversity of business requirements. As organizations seek to navigate an increasingly digital and interconnected world, they require technology partners who can provide customized solutions that address their unique needs and challenges. This shift necessitates a deeper understanding of customer pain points and a more consultative approach to solution delivery. By leveraging their expertise and insights, VARs can design and implement solutions that deliver meaningful and measurable value to their clients, fostering long-term partnerships built on trust and mutual success.
Pragmatic Approach to Technology
The pressures of the pandemic led businesses to reassess their expectations, resulting in a more pragmatic approach to leveraging technology. Vendors and customers are now more interested in cloud and systems integrator-focused partners that deliver long-term value. This shift prepares the ground for AI by adapting service and product offerings to the cloud era’s flexible economics. In this context, the ability to provide scalable, cost-effective, and resilient solutions becomes paramount.
The pragmatic approach to technology adoption acknowledges the need for flexibility and adaptability in an ever-changing landscape. Businesses are increasingly recognizing that a one-size-fits-all approach is no longer sufficient to meet their evolving needs. Instead, they are seeking partners who can offer tailored solutions that are both innovative and pragmatic. This involves a shift towards more strategic and consultative engagements, where the focus is on understanding the broader business context and delivering solutions that drive tangible outcomes. By adopting a more practical and results-oriented approach, vendors and channel partners can better support their clients’ digital transformation journeys and help them achieve their strategic objectives.
Importance of Ecosystem Collaboration
AI-Driven Solutions and Technology Partnerships
Jenni Flinders, senior vice president of worldwide partner programs at NetApp, emphasizes the importance of ecosystem collaboration in 2025. As AI-driven solutions gain prominence, technology partnerships will play a crucial role in delivering comprehensive and tailored solutions. Channel professionals are encouraged to diversify their offerings through co-selling and co-engineering to achieve stronger outcomes. This collaborative approach enhances the ability to innovate, deliver value, and meet specific customer needs.
Collaboration within the ecosystem is essential for harnessing the full potential of AI-driven solutions. By working together, technology partners can pool their resources, expertise, and insights to develop more sophisticated and effective solutions. This collaborative approach not only accelerates innovation but also ensures that the solutions delivered are more aligned with customer requirements. As AI continues to evolve and become more integrated into various aspects of technology delivery, the role of ecosystem collaboration will become increasingly vital. Channel professionals who embrace this collaborative mindset will be better positioned to capitalize on the opportunities presented by AI and deliver exceptional value to their customers.
Focus on Customer Needs and Outcomes
Understanding customer needs and focusing on outcomes rather than specific products are paramount in the evolving IT services landscape. As data scientists gain influence in technology buying decisions, the emphasis will be on delivering solutions that meet specific customer requirements. This approach ensures that technology partnerships are more effective and aligned with customer goals, leading to more successful and sustainable outcomes.
The focus on customer-centric solutions requires a deep understanding of the challenges and opportunities faced by clients. By prioritizing outcomes over products, technology partners can deliver more meaningful and impactful solutions that drive business success. This approach involves a shift from a transactional mindset to a consultative and strategic engagement model, where the primary goal is to achieve measurable results for the customer. By leveraging their expertise and insights, technology partners can develop solutions that address specific pain points, enhance operational efficiency, and drive innovation, ultimately helping customers achieve their strategic objectives.
Flexible Engagement Models for Diverse Partner Strategies
Shift from CapEx to OpEx IT Budget Models
As businesses shift from static CapEx to more agile OpEx IT budget models, partners must adapt accordingly. This flexibility has been gaining traction, with many organizations enhancing their IT operations by expanding or migrating their virtual environments, often embracing cloud solutions. The transition to OpEx models allows for more dynamic and scalable IT investments, enabling businesses to respond more effectively to changing market conditions and technological advancements.
The shift towards OpEx models also aligns with the growing demand for as-a-service solutions, which offer greater flexibility and cost-efficiency. By adopting OpEx models, businesses can better manage their IT budgets, optimize resource allocation, and scale their operations more effectively. This approach also supports the broader trend towards cloud adoption, as organizations seek to leverage the scalability, agility, and resilience offered by cloud solutions. Technology partners who can adapt to these changing budget models and deliver flexible, value-driven solutions will be better positioned to support their clients’ digital transformation journeys and drive long-term success.
Enhancing Partner Success and Customer Impact
As we approach 2025, the IT services channel is on the brink of significant transformations. This industry, particularly managed service providers (MSPs), IT services, and the reseller channel, is undergoing rapid evolution due to a blend of technological advancements and strategic business model shifts. Key predictions and trends expected to define the future include the rise of generative AI, which will revolutionize service offerings and operations. Alongside, traditional resellers are seeing a decline, making way for the resurgence of Value-Added Resellers (VARs), who offer customized solutions and enhanced value. Another critical factor is the growing importance of ecosystem collaboration, which emphasizes partnerships and strategic alliances. Additionally, flexible engagement models are being adopted more widely, providing adaptable and scalable solutions to meet diverse client needs. This article explores these dynamic changes, shedding light on the elements driving the industry’s future.
