Sage & IDC: Resellers Win When They Specialize

Recent research provides statistical evidence for what many have already suspected: the channel is changing, and partners are adapting to stay relevant in a new market. We dug into recent research claiming the channel is “being redefined by a new wave of high performing partners who are scaling faster, adopting AI sooner, and delivering measurable customer outcomes.”

Report details how resellers can remain competitive and even get ahead in age of AI

The study, commissioned by Sage and conducted by IDC, surveyed 2,000 software resellers. Roughly one-third (36 percent) were active Sage partners. 

The study found that so-called “high performers,” which they define as partners reporting 20 percent or higher year-over-year revenue growth, are shaping future models of success.

“High performing partners are building growth on innovation that delivers outcomes. They lead with customer outcomes, invest in AI as a differentiator, and run disciplined, services-led models with clear vertical focus. This cohort is translating technology into higher margins, faster time-to-value and stronger customer advocacy. Their success is repeatable, and their model is setting the pace for the next evolution of the channel,” says Stuart Wilson, senior research director of EMEA partnering ecosystems at IDC.

Why specialization and outcome-focused selling are crucial to today’s tech landscape

One of the key findings in the report details how customer demands are evolving over time. According to Sage and IDC (and many partners who have informed us that they observe similar demands in their own customer bases), clients are more concerned than ever with outcomes rather than specific technologies themselves.

Specifically, the report states that 45 percent of the global average of partners indicated seeing an increase in customer demand for business outcomes. 38 percent said they have seen greater demand for faster time to value.

“Customers expect more than a solution. They want an advisor who can guide them through change and help them achieve their goals. Trust is at the heart of how we work. Our approach goes beyond saving time. We empower finance leaders with trusted data so they can set the vision and direction for their organizations. We’re not just selling software. We’re forging partnerships that fuel long-term success,” said Baker Tilly Managing Director Susan Vincent. 

Alongside this, most high performers within the study identified as a CSP, MSP, or digital agency, further confirming a shift away from the traditional reseller model that has evolved over the last decade. 

Nearly 70 percent of high-performing partners studied offer micro-vertical solutions. The goal with these solutions is to focus on the specific language, processes, and requirements of customers within a vertical and build around the outcomes that those businesses in particular need to remain successful. 

“Partners who win put customers first, specialize where it counts, and apply AI to real problems. Sage helps them scale those strengths to unlock growth and accelerate time to revenue so they can lead the next wave of innovation. That’s the ecosystem we’re building together,” said Juha Harkonen, the vice president of partner ecosystem at Sage. 

How AI continues to shape business models and needs

Harkonen references perhaps the least surprising part of the results: AI is increasingly critical to long-term success.

Around 70 percent of channel partners in the study report having an AI practice, often involving the reselling or implementation of software with embedded AI features. The ones labelled high-performing partners go further: 87 percent report a dedicated AI practice, and 60 percent say most of their customers already see measurable business impact.

This shouldn’t come as a surprise, but Sage and IDC stress that this demonstrates once again that simply reselling tech solutions won’t be enough to stay competitive. Those high-performing partners have built whole practices around the ongoing servicing of AI deployments for their clients, showing the need to invest resources now to build for the future.

In fact, the report states that 33 percent of high-performing partners treat investment as a “company-wide strategic priority,” building a foundation that informs their approach to delivering services, building offerings, and expanding into verticals and market segments. 

AI, though, isn’t the only emerging technology the channel will need to embrace over the next several years. With quantum-related threats gaining visibility at many top vendors and other security risks continuing to evolve, partners will need to continue supporting clients while understanding how these changes impact their own operations.

In the US market, innovation is a key marker of high performance. Nearly half of partners (48%) cite the ability to innovate and adapt quickly as a top characteristic of success.