Channel partners pivoted in 2025-did you?

Margins shrank, buyer habits flipped, and managed services took centre stage. 2025 didn't just shake the channel-it rewired it. What worked, what flopped, and why the smartest Sls are now thinking like strategists, not sellers

- ASHOK PANDEY BHARTI TREHAN

2025 didn't break the tech channel, but it quietly redrew the map.

Beneath familiar labels like cybersecurity, AI, and managed services, a deeper shift unfolded: one that redefined profitability, customer expectations, and the very fabric of system integrator (SI) and channel partner business models.

The success stories? They weren't just about tech. They were about timing, strategy, and understanding how buyer behaviour had evolved.

Let's break it down: what channel players got right, what they missed, and why 2025 may become a turning point for how partners structure their future.

Where the growth happened

Managed services: From optional to essential

For channel partners and SIs, 2025 proved that managed services are no longer a niche. They are central.

• Recurring revenue models were the new growth engine: Partners increasingly built business models around annuity services like remote monitoring, compliance-as-a-service, or patch management, allowing them to smooth out revenue and reduce dependency on seasonal product sales.

• Cloud complexity created demand for full-stack management: Enterprises faced integration challenges across multi-cloud platforms. MSPs who could manage provisioning, cost governance, and SLAs became indispensable.

• India and APAC saw faster adoption: Regional buyers in India embraced outsourced management faster than global averages, giving domestic SIs an edge in building service-led models.

• Strong market data reinforces the shift: Managed Services Annual Contract Value (ACV) in APAC rose 26% in 2024, reaching a record US$4.4 billion, a sign of how channel partners are doubling down on recurring services (ISG Index™ Q4 2024).