Collectively, the IT channel is eager to solve for customer demand by leaning in on the latest innovation in technology. It would be the easy thing to do to sit back and say, “AI is improving efficiency, we need more cybersecurity measures, and we have a skills gap problem.” However, none of these are new headlines, and as standalones, none of them are solving challenges.

That’s why this year, we’re taking it several steps forward, setting a new benchmark with the release of our fourth annual Direction of Technology (DoT) report, the only one of its kind in the industry. This year’s report is our most comprehensive yet, featuring insights from more than 1,400 channel partners across 40 countries globally.

While the DoT certainly identifies key trends, it goes far beyond just trendspotting. This year, we’re introducing two new standardized indices to decode partner performance and sentiment, with a clear roadmap for what has generated success in the last 12 months, and what will move the needle over the next 12 months.

First Impressions Through a New Lens

The pace of change in the technology ecosystem is accelerating, and channel partners without a clear roadmap to thrive in a market defined by AI, services and specialization risk getting left behind.

With a sample size of more than 1,400, this is the most thorough look at the global market we’ve had to date. And while revenue growth slowed globally (66.8% of respondents reporting revenue growth over the last 12 months, down from 75% in the year prior), optimism remains strong.

To better understand channel partner performance over the last 12 months and the outlook for the next 12 months, we introduced two new metrics to help partners benchmark their performance:

• Net Growth Index: Measures actual revenue performance. With a baseline score of 100, APJ and North America lead with scores of 107, while Europe and LAC trail slightly behind. Similarly, ISVs and professional services organizations lead all partner types with scores of 120 and 110, respectively, while traditional VARs and systems integrators fall below the baseline.
• Net Optimism Index: Captures future sentiment. Latin America and the Caribbean lead all regions with an optimism score of 116, while the Asia Pacific and Japan region is tempering expectations. Professional Services firms top the chart with a score of 116, followed by ISVs at 106, while traditional VARs report lower optimism as they look to incorporate services into their portfolio.

These indices offer a clearer view of where partners are thriving and where challenges persist.

A Deeper Dive into the New DoT Structure

This year’s DoT report introduces a more organized and interactive structure, designed to help partners navigate the complexity of the global IT ecosystem with clarity and precision. By organizing the findings into four distinct chapters (global trends, regional nuances, partner-type profiles, and technology focus areas) the report empowers readers to customize their experience and pinpoint what matters most to their business model and market.

• Global Findings: A high-level view of industry-wide sentiment, growth performance, and emerging priorities across 1,400+ partners in 40 countries.
• Regional Nuances: Breakouts for APJ, Europe, LAC, and North America reveal how local macroeconomic conditions, technology adoption, and optimism vary by geography.
• Partner-Type Profiles: Individual chapters for MSPs, VARs, ISVs, SIs, hybrid models, and professional services firms highlight performance benchmarks and strategic opportunities, tailored to specific businesses.
• Technology Focus Areas: Deep dives into AI, cybersecurity, data & analytics, endpoint, and sustainability show what partners are prioritizing, where they are investing and where gaps remain.

This approach is all about helping the channel make better decisions. By tailoring insights to specific partner types and regions, TD SYNNEX helps channel organizations benchmark themselves, identify growth opportunities, and align their upcoming strategies with the realities of their market.

Collaboration and Specialization is the New Growth Formula

Competition is mounting and as these pressures intensify, partners are finding success by leaning into specialization and strategic collaboration to identify and solve customer challenges. The report shows that:

• Pressure makes diamonds: 75% of global respondents identify increased market competition as a top macroeconomic concern, and increased competition is the #1 challenge for partners when scaling operations.
• Specialization beats scale: End users aren’t just buying product. They’re seeking expertise and trust. Industry expertise and consultation was the #1 factor in how end users are choosing their reseller.
• Service-led models are outperforming resell models: 90% of partners plan to offer support and maintenance services by the end of 2026, and 88% offer or plan to offer consulting and professional services. Only 45% plan to prioritize hardware resell.

Partners are also redesigning their operating models to meet the demands of the AI era, with 68.8% citing talent acquisition and retention as a top concern. The skills gap is a signal that transformation is needed across workflows, roles, and company culture.

Confidently Navigating Complexity with AI and Cybersecurity

As the IT ecosystem grows more intricate, partners are turning to AI and cybersecurity as strategic imperatives. This year’s DoT report reveals that these two areas are driving transformation across the channel, with partners investing in smarter, more scalable solutions to meet evolving customer demands.

• AI is mission-critical, but still complex: 74.6% of channel partners say AI is essential to their future, with 38.9% already offering at least one AI solution and 36.1% planning to launch one in the next 12 months.
• AI-powered cybersecurity is the top growth driver: 58.4% of partners say AI-powered cybersecurity will have the most significant impact on their industry, followed closely by AI-driven automation at 54.3%.
• Top cybersecurity challenges include:
  • Skills gap and expertise limitations (49.2%)
  • Integration with existing systems (41.9%)
  • Vulnerabilities in third-party integrations (39.4%)
  • Customer confusion and expectations (39.4%)
• AI implementation hurdles mirror cybersecurity concerns: The biggest obstacles are translating AI into customer-specific business value (44.6%) and overcoming skepticism around AI outcomes (43.1%).

These insights emphasize a critical truth: success in today’s channel requires the ability to simplify, specialize, and build trust. Partners who can operationalize these technologies with clarity and confidence will be best positioned to lead in a rapidly evolving market.

A Bright Future Built on Insight and Action

At TD SYNNEX, we are committed to shaping the future of technology, and that commitment extends to the channel with our partner-first mindset.

The fourth annual Direction of Technology report is built with that same partner-first mindset and is meant to serve as a strategic guide to navigate a rapidly evolving landscape. We recognize that our partners lead with agility, resilience, and vision, and we couldn’t be more thrilled to pull all of those amazing traits into a single report. We’re grateful to the 1,412 partners who contributed their insights. Together, we’re charting the course of what comes next.

Check out the full fourth annual TD SYNNEX Direction of Technology report.