How channel providers must transform in the era of rapid technological advancements

In today's ever-changing technology landscape, achieving a productive and symbiotic relationship between vendors and channel partners is more critical than ever. Stability in programmes, products, pricing, channel value, and customer needs has traditionally been the cornerstone of successful partnerships. However, the rapid evolution of technology has introduced a new layer of complexity, posing both challenges and opportunities for those operating within the channel.

One undeniable reality is that vendors who fail to keep pace face the risk of being left behind. As the market demands innovative solutions to meet the ever-expanding needs of businesses and consumers, vendors unable to adapt may find themselves phased out by more agile and tech-savvy competitors.

Seizing opportunities

The silver lining amidst this technological disruption lies in the opportunities it presents to channel partners. Rapidly evolving technology opens doors for channel providers to cultivate relationships with new vendors. This shift requires a proactive approach, underpinned by strategic alignment and a deep understanding of the evolving tech landscape.

Building successful partnerships with new vendors requires, I believe, three main considerations:

1. Investing in upskilling: Channel partners must invest in continuous education and upskilling of their teams. This empowers them to navigate emerging technologies, ensuring they remain relevant and capable of guiding customers effectively.

2. Diversification of focus: Flexibility is crucial. Channel providers should diversify their focus and expand their offerings to encompass the latest technological advancements, ensuring they meet the dynamic needs of their clients.

3. Vetting new vendors carefully: Choosing the right vendors is paramount. Channel providers must thoroughly vet potential partners to ensure that they can deliver stable and mutually beneficial channel programmes.

An immediate impact to the channel

So, when we talk about these new technologies which could revolutionise channel and vendor relationships, which ones do we actually mean? Well, for me it isn’t just the likes of AI, big data and ML which are going to make the most immediate impact. We’re seeing it across the entire technology stack.

Let’s take a look at SD-WAN services as one example. The surge in these services originally benefited Managed Service Providers (MSPs), who excelled in navigating its complexities. However, SD-WAN was originally designed for office-based work. Now in times of hybrid and remote working, this technology is posing security and connectivity challenges. MSPs must pivot themselves – and guide their clients - to a new networking strategy that aligns with the evolving needs of modern businesses, offering seamless connectivity, visibility, and security for dispersed users.

This presents both an opportunity and a challenge to resellers. Essentially, they must be able to guide their clients towards an evolution of their network infrastructure. For example, for those with SD-WAN; that requires them to help them to incorporate a SASE (Secure Access Service Edge) framework.

This not only helps position them as a strategic partner but also has advantages to the MSP. For example, the managed service provider themselves naturally benefit from the enhanced flexibility and visibility for SASE in hybrid environments compared to SD-WAN, not to mention new observability suites are more intuitive and user-friendly But it also allows the channel to restructure their service offering towards more of a subscription model, which means moving from per-site pricing to per-user pricing. SASE also creates opportunities for more innovative services to be created around security and observability, which because they are software-based can be delivered in a matter of hours which substantially shortens book-to-bill times, at the same time the security solutions offer up high-margin professional service engagements.

Ultimately enabling the shift from SD-WAN to SASE empowers the channel partner to not only become a more strategic partner but allows them to positively evolve their own service offering in turn.

Achieving a perfect harmony

Success in the ever-evolving technology market hinges on achieving harmony between vendors and channel partners. This symbiotic relationship should be built on mutual trust and support.

For vendors, recognising the value of the channel is paramount. This includes appreciating vertical specialisation and the expertise channel partners bring to the table. In return, vendors must provide clear, well-structured programmes that support solutions and customer engagement from pre-sales to delivery and support effectively.

I firmly believe that collaboration is truly key. Vendors and channel partners should work together to identify target customers, showcasing the value of their partnership and instilling confidence in potential clients. Only then can they unlock the full potential of their combined strengths and provide tailored solutions that address the unique needs of their customers, fostering long-lasting relationships and mutual success.

The future outlook

The rapidly advancing technological landscape presents both challenges and opportunities for channel providers. To capitalise on this opportunity, channel partners must position themselves as trusted advisors capable of delivering the benefits of these new technologies to their clients.

This means embracing flexibility, adaptability, and continuous learning. By building strong relationships with innovative vendors and fostering collaborative practices, they can ensure their relevance and success in the ever-evolving tech market.