Channel partners will look for vendor and platform consolidation in 2025

Channel partners will look for vendor and platform consolidation in 2025

2025 will be all about channel partners moving towards hyper-verticalisation, driving flexibility in vendor relationships, vendor consolidation with one platform providing multiple solutions, and the convenience of getting the entire technology stack from one place. Executives from Sage, Netcall, NFON UK, provide their perspectives.

In 2025, the channel faces several significant challenges that require strategic action to maintain a competitive edge. One of the foremost challenges is rising customer expectations. Another major challenge is the shortage of resources and rising labour costs.

The speed of technological advancement presents a significant obstacle. Moore’s Law dictates that as our capacity to compute increases exponentially, the pace of technological innovation accelerates. Recent developments like the explosive impact of Generative AI have rapidly transformed the market.

Resellers need to make proactive investments to keep pace with this acceleration by leveraging partner advisory councils, innovation laboratories, hackathons, conferences, and other collaborative forums provided by publishers.

Regulatory compliance is an evolving challenge. Regulations are striving to keep up with technological advancements, with new mandates emerging in areas like e-invoicing, sustainability reporting requirements, and crypto asset accounting standards. Resellers must stay abreast of these regulatory trends to effectively advise their customers.

As value shifts from subscription models to consumption-based models, resellers need to gear up to maximise their participation in this evolving landscape. By focusing on consumption metrics and delivering ongoing value, resellers can enhance customer loyalty and revenue streams.

In 2025, technology presents the most significant opportunities for the channel, enabling partners to engage customers more effectively and meet their evolving expectations. Customers are becoming increasingly savvy about what technology can achieve for their businesses.

It is vitally important that vendors take on a greater thought leadership role, and the relationships between them and channel partners become far more collaborative and educational, rather than transactional.


Juha Harkonen, VP Commercial Partners, Sage
Juha Harkonen, VP Commercial Partners, Sage

Rising customer expectations increase value placed on vertical expertise

Looking ahead to 2025, three pivotal trends are set to significantly shape the channel landscape. Firstly, the rise of AI and automation is driving increased demand for expertise. Channel companies should invest in developing capabilities in these areas to meet growing customer needs, positioning themselves as knowledgeable partners who can effectively integrate these technologies into clients’ businesses.

Secondly, pricing and packaging innovation is moving towards suites and modular add-on services. Resellers are increasingly expected to help customers architect their business solutions map to drive the right commercial outcomes. By offering comprehensive solutions and acting as strategic advisors, channel companies can enhance their value proposition and better meet evolving customer demands.

Thirdly, the dominance of cloud computing continues to transform the industry. Resellers need to gear their businesses around subscription annuities and amplify subscription services through robust customer success functions. Embracing the cloud model requires a shift towards recurring revenue streams and a focus on long-term customer relationships.

Supporting all these trends, customer support plays an elevated role in maximising value for customers, driving loyalty, adoption, and consumption. By enhancing customer support services, channel companies can ensure clients fully utilise the solutions provided, leading to higher satisfaction and loyalty.

Hyper-verticalisation presents a key opportunity. Rising customer expectations have increased the value placed on vertical expertise. The ability to architect and configure bespoke, composable solutions is critical for differentiation and unlocking higher value with customers. Channel companies should specialise in specific industries or sectors to provide tailored solutions that meet unique customer needs.

With this specialisation comes a hyper-focus on hero solutions. We will see publishers and resellers innovate around hybrid go-to-market strategies to speed time to value. Resellers that try to be everything to everyone risk becoming nothing to anyone.

Therefore, focusing on core strengths and signature offerings will be essential. By specialising and partnering strategically, channel companies can position themselves to capitalise effectively on these opportunities, driving growth and meeting the evolving demands of the market

In 2025, the channel faces several significant challenges that require strategic action to maintain a competitive edge. One of the foremost challenges is rising customer expectations. A new generation of resellers is emerging, aligning with the intelligent network ERP paradigm to meet these heightened expectations.

Current resellers need to launch incubation teams that are geared differently to align with new commercial structures and evolving customer journey and relationship realities. By adapting their teams and strategies, resellers can stay relevant and meet the sophisticated demands of modern customers.

Another major challenge is the shortage of resources and rising labour costs. Publishers are rapidly upskilling their teams, and resellers should capitalise on these efforts by participating in publishers’ programmes to upskill alongside them. By tapping into these initiatives, resellers can enhance their capabilities and mitigate resource constraints without bearing the full burden of training costs.

The speed of technological advancement also presents a significant obstacle. Moore’s Law dictates that as our capacity to compute increases exponentially, the pace of technological innovation accelerates. Recent developments like the explosive impact of generative AI have rapidly transformed the market.

Resellers need to make proactive investments to keep pace with this acceleration by leveraging partner advisory councils, innovation laboratories, hackathons, conferences, and other collaborative forums provided by publishers. Publishers, in turn, need to double down on creating vibrant communities focused on innovation to support their reseller networks.

Regulatory compliance is an evolving challenge. Regulations are striving to keep up with technological advancements, with new mandates emerging in areas like e-invoicing, sustainability reporting requirements, and crypto asset accounting standards. Resellers must stay abreast of these regulatory trends to effectively advise their customers.

By being informed and proactive about compliance requirements, resellers can position themselves as trusted advisors and help their clients navigate the complex regulatory landscape.

In 2025, significant opportunities await the channel, and capitalising on them requires strategic focus. One major opportunity is the emergence of Copilot as a new class of user interface, which will democratise access and participation in Financial Applications and Enterprise Resource Planning systems.

While automation efficiencies have led to a decline in user counts over the past few years, the advent of Copilot and the expansion of suites into adjacent functional areas are expected to cause a resurgence of the user as a conduit of value exchange. Channel companies should embrace Copilot technologies to enhance user engagement and offer more accessible solutions to clients.

Additionally, Recurring Revenue per Base Value, RRbv and Net Revenue Retention, NRR are becoming paramount. With increasing network interconnectivity and extensibility, resellers have the opportunity to help customers solve a wider range of business needs.

As value shifts from subscription models to consumption-based models, resellers need to gear up to maximise their participation in this evolving landscape. By focusing on consumption metrics and delivering ongoing value, resellers can enhance customer loyalty and revenue streams.


Sippora Veen, VP Global Partner Marketing, Sage
Sippora Veen, VP Global Partner Marketing, Sage

Channel partners seeking flexibility in vendor relationships

As we approach 2025, the channel landscape is being reshaped by several pivotal trends. Firstly, industry consolidation continues at a rapid pace. In our own ecosystem, numerous partners have taken majority stakes in others or acquired them outright. This consolidation is altering competitive dynamics, and channel companies should consider strategic mergers or collaborations to strengthen their market position and broaden their capabilities.

Secondly, partners are seeking greater flexibility in their vendor relationships. While joining large global vendor ecosystems was once appealing, many partners now prefer to be a significant player in a smaller network.

This shift allows for more meaningful relationships, increased flexibility, joint investments, and a deeper understanding of each other’s business models. Channel companies should cultivate closer, more collaborative partnerships with vendors that align closely with their strategic objectives.

Thirdly, customer expectations around AI are driving increased demand for practical applications that businesses often struggle to implement due to a growing skills gap. This scenario creates a significant need for services and solutions from partners. Channel companies should invest in developing AI expertise and services to meet this demand, helping customers leverage AI technologies effectively while bridging the skills shortage.

Additionally, partners are transitioning towards a more advisory role. As technology becomes more complex and businesses seek strategic guidance, partners are moving beyond traditional reselling to provide consultative services and act as trusted advisors.

By offering insights into technology trends, assisting clients in developing IT strategies, and providing tailored solutions, partners can deepen client relationships and differentiate themselves in the market. Channel companies should focus on building advisory capabilities and positioning themselves as strategic partners to their clients.

To leverage these trends, channel companies need to be agile and proactive: embracing consolidation opportunities, fostering flexible vendor relationships, investing in AI competencies, and enhancing their advisory services. This strategic approach will enable them to meet evolving customer needs and maintain a competitive edge.

In 2025, the channel faces significant challenges that require strategic action to maintain a competitive edge. One of the foremost challenges is finding and maintaining talent. Investing in recruiting, fostering, and developing in-house talent is crucial.

Channel companies need to prioritise talent development programmes, create attractive career paths, and foster a supportive culture to retain skilled professionals. Collaborating with tech vendors can also help identify potential acquisition targets, bolstering talent pools and bringing in new expertise.

Another major challenge is continuing to develop services and solutions around customer demand for AI while managing customer expectations about what is realistically achievable.

As AI technology advances rapidly, customers have increasing expectations for practical applications that can enhance their businesses. However, a growing IT skills gap makes it difficult for many organisations to implement AI solutions effectively.

Channel companies must innovate and expand their AI offerings to meet customer demand and stay ahead of technological advancements. At the same time, they should engage in transparent communication with customers regarding AI capabilities, helping them understand what is feasible and aligning solutions with their needs.

By focusing on talent management, customer education, and innovation in AI services, channel companies can navigate these obstacles and maintain their competitive edge. Proactively addressing talent shortages through recruitment, development, and retention strategies—and considering strategic acquisitions—will build a skilled workforce capable of delivering advanced solutions.

Managing customer expectations effectively by setting clear expectations and delivering effective solutions will build trust and loyalty.

In 2025, technology presents the most significant opportunities for the channel, enabling partners to engage customers more effectively and meet their evolving expectations. Customers are becoming increasingly savvy about what technology can achieve for their businesses.

They demand that technologies—especially AI—be delivered in a consumable way that meaningfully impacts their operations. At the same time, there is a rapidly growing IT skills gap, which poses a challenge but also an opportunity for channel partners.

Partners are uniquely positioned to identify specific IT skills gaps within their customers’ organisations. By offering service-led solutions that provide the necessary knowledge and insights, they can help clients handle critical tasks essential for meeting organisational objectives and demands.

This approach not only addresses the skills shortage but also enhances the partner’s value proposition and strengthens relationships with their SMB customers.

To capitalise on these opportunities effectively, channel companies should invest in developing expertise in high-demand areas like AI, creating technology offerings that are easily adoptable and deliver tangible business benefits.

By focusing on delivering meaningful impacts on clients’ ways of working, partners can exceed customer expectations and solidify their position in an evolving technological landscape. Embracing this role enables channel partners to bridge the gap between technological potential and practical implementation, ensuring mutual success.


Clare Rafferty, Head of Channel Partnerships, Netcall
Clare Rafferty, Head of Channel Partnerships, Netcall

Channel partners will turn to vendor consolidation, with one platform providing multiple solutions

The channel industry faced testing challenges this year in the shape of tightening economic landscapes the world over, global supply chain disruptions caused by geopolitical issues, continued pressure to modernise and be ever more sustainable, as well as the ongoing skills shortages that hamper the ability of businesses to achieve optimum performance.

Channel strategies constantly need to evolve to maximise selling opportunities that follow market trends, and the increasing demand for end-to-end solutions on a single platform is picking up momentum – presenting a good selling opportunity for the channel.

From a cost and time perspective, it is much more beneficial for a business to only have to deal with one vendor on one platform, rather than having to communicate to several vendors across several channels of communication.

End-to-end solutions on one platform prevent communication and data silos from continuing, making the process far more streamlined and providing more control over costs. If a customer is compiling end-to-end solutions with several vendors, just one cost fluctuation, such as the cost of living crisis, can affect margins hugely and see them deteriorated rapidly, as individual vendors alter their pricing.

2025 is sure to the tides changing again for the channel, with customer expectations increasing and AI adoption showing no signs of slowing down, but also many channel partners and vendors will turn to consolidation where one platform can provide a multitude of solutions, rather than several vendors providing different solutions.

As the market, customer expectations and the channel itself all evolve, channel partners will lean on vendors more for high-level strategic thinking, and thought leadership. This puts a responsibility on the vendors to empower their channel partners with the sufficient knowledge and strategy needed as to how products and technology innovations are positioned, and how trends, such as AI, may impact business moving forward.

Such expertise helps channel partners provide a better experience for their end customers, and ultimately help them sell more effectively.

Traditionally the relationship between vendors and channel partners has been very transactional, with vendors simply informing resellers when products need to be sold and when, but this relationship will become far more consultative, and channel partners themselves can adopt the role of trusted advisor.

Across all industries and businesses, AI is an unavoidable topic that is having a profound impact. Focusing on customer experience though, especially within the contact centre space, it has been traditionally quite hard for new companies to break into the market with the barriers of entry high in gaining ground on the traditional big players.

However, with the advent of AI putting a focus on the front end of businesses as well as being accessible to all, it has opened up the market substantially which is great for the channel.

The adoption of AI is not without its challenges, though. Channel partners are regularly asked by their end customers what impacts AI can have, and this is causing confusion. This has caused a scramble for channel partners to formulate strategies and fully understand how they will incorporate AI.

So for vendors, it is vital that they stay ahead of the curve when it comes to AI capabilities and the functionalities they are adopting, so that partners are kept abreast of the latest innovations and how the innovations they are seeking to implement through adoption of AI.

Across many industries, if not all, people have become accustomed to being able to access what they need almost instantly, whether that is information or physical products, and this will only continue. Customer expectations will continue to rise.

But costs have risen across the board, none more so when it comes to the cost of human workers, so it is becoming harder to service these customer demands. Consequently we will see the increased adoption of technology, to fill this gap.

However, this transition may not be as fast or as seamless as customers expect, so companies throughout the channel will have to strategise carefully as to how they balance the deployment of people and technology, while ensuring customer service levels don’t drop.

This is especially important as customer experience becomes an ever more important differentiator for channel companies.

As always though, challenges also present opportunities – as long as they are capitalised on correctly. To do this, it is vitally important that vendors take on a greater thought leadership role, and the relationships between them and channel partners become far more collaborative and educational, rather than transactional.


Myles Leach, Managing Director, NFON UK
Myles Leach, Managing Director, NFON UK

Complete suite of services allows resellers to foster engagement

With the PSTN switch off delayed, 2025 is a valuable opportunity for SMEs to evaluate and select the best alternative communication systems to minimise disruption from the switch off. It also provides businesses with a chance to reassess current communication tools and think about what might serve their needs better in today’s distributed working environment.

For example, adopting Unified Communications as a Service, UCaaS solutions can enhance operational agility, support a hybrid workforce, and make communications more efficient and effective.

That means more opportunities for the comms channel to expand beyond traditional voice services to include unified communication solutions that integrate voice, video, messaging, and collaboration tools that will enrich customer experience and streamline communication workflows.

In the channel, consolidation – providing IT, security and communications services under one monthly invoice – will gain momentum because of the simplicity it offers clients and resellers.

Clients value the convenience of getting the entire technology stack from one place and resellers appreciate the predictable recurring revenue streams that having all services bundled together creates.

It is more than just a billing convenience however; it is a powerful differentiator for resellers as many businesses are actively seeking to reduce vendor fatigue by consolidating their technology stacks.

A complete suite of services allows resellers to foster comprehensive engagement, positioning them as the single point of contact for support. This improves customer loyalty and creates a level of service integration that is unappealing for businesses to turn their back on.

The picture that comes to mind of a traditional contact centre may be an impersonal office filled with rows of agents, but cloud-based systems are letting businesses move past these kind of contact centre interactions. Agents no longer need be in one location and businesses can easily adjust their customer service capacity as required.

Firstly, cloud-based systems are making contact centre technology more scalable meaning even small start-ups can now deploy basic chatbots or CRM systems to deliver a level of service previously only possible for big companies with deep pockets.

Secondly, AI will become much more capable in the contact centre and increasingly be able to predict customer needs and pre-emptively solve problems. This means that interactions can be personalised and customer queries can be solved faster and with more satisfactory outcomes.

Take a contact centre for a hospital for example, AI can take many of the routine patient requests like processing prescriptions and booking appointments. If it needs to connect patients to a human contact centre agent, then AI can surface the patients’ medical details and summarise previous calls for the agent.

It means the agent can get right down to answering questions and providing more meaningful service.

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