The APAC channel is moving beyond transactional resale as partners build more services-led, recurring-revenue businesses around cybersecurity, AI, and hybrid IT.
Westcon-Comstor APAC Executive Vice President and Chief Marketing Officer Patrick Aronson recently told Channel Insider the shift is increasing demand for distributors that can provide more than product fulfillment, particularly as partners face greater pricing volatility, regulatory complexity, and pressure to deliver AI-ready solutions.
APAC partners shift from resale to recurring services
As we reach the halfway point of the year, we asked Aronson how he views the state of the APAC partner ecosystem today and what changes have stood out most over the past two to three years.
The biggest change, Aronson said, has been the continued shift toward a more mature, services-led ecosystem within the region.
“The APAC partner ecosystem today is more mature, specialised, and increasingly services‑led. Over the years, we’ve seen a shift away from transactional resale towards value‑driven, recurring revenue models built around integration, lifecycle services, and vertical expertise,” Aronson said.
READ MORE: Earlier this year, we explored how AI adoption, cloud growth, and infrastructure expansion are expanding the role of MSPs across APAC.
Distributors expand beyond traditional enablement
Aronson said those shifts are changing the role distributors play in the region, with partners increasingly looking for support beyond traditional product fulfillment. In addition, he mentioned the increased pressure partners are experiencing due to a variety of factors.
“We’ve seen greater volatility in pricing, lead times, and commercial models, which puts pressure on partners to manage customer expectations while maintaining credibility. This is where distribution is evolving its role; providing earlier transparency, flexible options, and support across the full lifecycle to help partners stay competitive.”
Beyond that, Aronson highlighted how APAC’s diversity presents another challenge — requiring partners to navigate varying levels of digital maturity and regulatory environments across different markets.
How partner expectations push distributors to evolve
Turning to the role of distributors, Aronson noted another key shift in the AI era: distributors evolving from offering only traditional training and enablement to being tasked with providing more extensive end-to-end partner support.
“Partner expectations have evolved beyond traditional training and enablement. Today, they are looking for end-to-end support: from solution design and go-to-market strategy to financing and post-sales services,” he said.
“There is also a growing need for speed and insight, with partners seeking better access to data and market intelligence to identify opportunities more quickly.”
To help partners navigate those shifts, Aronson said Westcon-Comstor continues to focus on enabling them to scale and differentiate themselves in the market.
He cited services-led programs, investments in digital platforms, and support for partners building recurring revenue streams and deeper technical expertise in high-growth areas such as cybersecurity and AI as key elements of that strategy.
AI and cybersecurity as top partner priorities
At the forefront of demand in the APAC region, cybersecurity, AI, and managed services were named as primary focus areas for partners, per Aronson’s observations.
“Cybersecurity remains the dominant area of demand, driven by a more sophisticated threat landscape and stricter regulatory expectations,” Aronson said.
“Alongside that, we’re seeing strong momentum around AI and managed services. AI is moving from experimentation into real deployment, with partners focused on making it practical and outcome-driven for customers.”
He also highlighted data sovereignty, privacy regulations, and cybersecurity frameworks as key considerations across APAC.
Aronson said this is particularly important as changing data localization requirements and stricter compliance standards continue to influence technology purchasing decisions across the region.
Regulatory complexity creates advisory opportunities
Over the next 12 to 18 months, Aronson said organizations will increasingly look to partners who can guide them through the growing complexity of their IT environments.
“The biggest opportunity lies in helping customers manage growing complexity – across hybrid IT environments, cybersecurity, and regulatory requirements.”
According to Aronson, this growing complexity is fueling demand for network and data center modernization, more advanced cyber defense and platform-based security solutions, and lifecycle-led, software-driven business models that enable partners to build recurring revenue through managed and subscription services.
To that end, he argued that partners who position themselves as trusted advisors, combining technical expertise with business insight, will be best positioned to succeed, particularly in the fast-growing mid-market and emerging economies in APAC.
AI readiness gap opens new growth opportunities
Looking further ahead, Aronson said the convergence of AI and cybersecurity will have the biggest impact on the APAC channel over the coming year, citing a growing partner readiness gap as customer demand for AI accelerates.
“Our Future Ready research shows that while customer demand is rising fast, 74% of partners say they are not yet able to design and deliver AI‑ready networking solutions. That gap creates a major opportunity for those who invest now, particularly in high‑growth areas like AI‑enhanced network security analytics (52%) and AI‑powered observability and diagnostics (48%).”
“Taken together, this is pushing partners to move up the value chain. Those that can combine AI innovation with strong security, data‑driven insight, and hybrid expertise will be best positioned to deliver higher‑value, recurring services and lead the next phase of channel growth.”