A new study from IDC and commissioned by Sage shows that the channel is being redefined by a new wave of high performing partners who are scaling faster, and adopting AI sooner. The result is that they are delivering measurable customer outcomes faster and winning with AI and specialization, to deliver powerful customer outcomes and shape the future of the channel. The IDC study commissioned by Sage interviewed over 2,000 software resellers.
The metrics from the IDC study are highly significant. They found that AI is central, with 87% of high performers running dedicated AI practices. They also found that AI ROI is real, with 60% reporting that most customers see measurable impact. In addition, micro-verticals win, with 70% offering industry-tailored solutions.
“High performing partners are building growth on innovation that delivers outcomes,” said Stuart Wilson, Senior Research Director, EMEA Partnering Ecosystems at IDC. “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.”
In this blueprint, IDC defines high performing partners as those delivering 20% or more revenue growth in the past two fiscal years. Ambition is high across the ecosystem: 63% of all partners report double-digit yearly growth. Among high performing partners, 84% are targeting 20%+ this year. They also report 66% average gross profit margin against the global average of 42%. High performing partners are also reporting a Net Promoter Score (NPS) of 61 compared to the global average of 48, signalling stronger customer satisfaction and advocacy.
Juha Harkonen, VP Partner Ecosystem at Sage, pointed out how all this reflects fundamental change in the channel.
“As technology evolves, we’re enabling the accountants, the bookkeepers, the CFOs to really elevate the work that they’re doing. And as we’re changing and elevating those roles, there’s going to be different, evolving technology needs from those customers, and there’s an elevated expectation of the service that our partners are providing them as well. So as partners are geared to advise on technology solutions, now, partners need to regear to build more business consultancy and advisory muscle. And we all have seen this kind of play out in the role of the CIO, where today they’re strategic business advisors, and that same kind of evolution, we’re going to definitely see within the partner community as well.”
Around 70% of channel partners in Canada and globally say they have an AI practice, often meaning they resell or implement software with embedded AI features. High performing partners go further with 87% reporting a dedicated AI practice, and 60% say most of their customers already see measurable business impact. These partners aren’t just reselling AI, they’re embedding it into service models to automate delivery, drive smarter decisions, and turn innovation into tangible gains like faster workflows, reduced errors, and stronger compliance.
Wilson had strong advice for those who are building partner programs, investing in marketplaces, or navigating multi-cloud complexity.
“As cloud ecosystems grow more interconnected, the lines between vendor programs, partner roles, and revenue streams are blurring fast, Wilson stated. “That’s why I wrote about Marketplace Multipliers – not just as a concept, but as a strategic lens for understanding how partner overlap and platform convergence are reshaping the channel. This isn’t just about who partners with whom. It’s about how distributors, GSIs, ISVs, and hyperscalers co-create value in a modular, multi-vendor world. The ability to orchestrate across these layers – with intelligence, interoperability, and AI-readiness – will define the next generation of ecosystem leadership.”
Nearly 70% of high-performing partners offer micro-vertical solutions. Specialization means meeting customers where they are, speaking their language and solving sector-specific challenges. This makes it easier for customers to get started quickly, see value faster, and avoid costly customizations. For partners, it means less rework, smoother delivery, and more opportunities to grow in-life revenue.
Brand matters. The IDC study said that seven in ten partners place strong emphasis on working with software brands that have a stellar reputation, and roughly a third say selecting a top-tier brand is the single most important factor. A strong brand signals ambition, vision and momentum. It helps partners win trust, lead with confidence, and stand out in competitive markets.
A third of high performing partners treat investment as a company-wide strategic priority. This mindset reflects their commitment to scale, specialization, and transformation. Whether building new services, deepening vertical expertise, or developing proprietary IP, these partners are laying the groundwork for sustained growth.
“Partners who win put customers first, specialize where it counts, and apply AI to real problems,” Harkonen stated. 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.”
However, Canadian partners face unique challenges with almost half (49%) citing budget constraints are a top barrier to technology investment, while 44% say lack of skilled resources is the top internal barrier to achieving high performance. More than three-quarters of Canadian partners (76%) are embracing a more strategic role in the channel, positioning themselves as trusted advisors rather than transactional sellers. This reflects a broader trend towards outcome-driven engagement, with partners helping small and medium-sized businesses navigate complexity and unlock long-term value.
“Success comes from focusing on what really matters to your business,” said Dan Caringi, Partner, MNP Digital, which has over 100 offices across Canada. “By committing to industry specific solutions, we don’t just implement technology, we speak our client’s language, understand their workflows, and solve for compliance and business challenges. Our collective goal is to simplify the complex, and turn technology into an advantage, demystifying emerging technologies, and helping clients take meaningful steps forward at pace that makes sense for their business. There’s no one-size-fits-all approach; real results come from understanding our clients’ domain and partnering for mutual success with the right people, processes and technologies.”
So what does this mean for the channel? First, in a market defined by acceleration, high performance is no longer a competitive advantage, it’s becoming the baseline. The industry is undergoing a fundamental shift, from transactional sales to outcome-driven value, from product push to strategic enablement, and from fragmented activity to long-term bets on scale, specialization, and trust. As the channel evolves, partners who embrace these behaviours will be best positioned to lead, grow, and shape the future.
“When I think about what my personal kind of design principles for programs is, one is simplicity and clarity,so people understand what we’re about. There’s nothing hidden in the program. The more simple programs can be, typically, the more successful they are. And for those of you out there listening and you’re like, okay, yeah, but you’ve still got some programs that are fairly complex. Yes, we still have some programs that are fairly complex. And we’re working every day to try and streamline and make those a little bit more understandable and bring clarity, because that’s not where you want to spend your time. You want to spend your time selling and delivering value to customers. So the more simple we can be with the programs the better.”
Harkonen said partners had to consider three things.
“First of all, be aware of the technology transformation that is happening and what’s coming out to market and and how that can be used to augment and grow your practice,” he said. “Secondly, there’s only so much you can assimilate into your current frame of reference, or the way that your company is geared and the way that you do business. You have to be open to adapt. And the last one is really invest. If you’re thinking that with the resources that you have today, with the skills and the capacity that you’re going to take on, a vertical slant, or you’re going horizontally, and grow into a whole new practice like HR, then that’s probably going to be challenging unless you make the proper investments to do so.”
These findings will also shape discussions at Sage’s flagship event, Sage Future for Partners, in November.
Study respondents were based across eight countries: the U.S. (650), U.K. (350), Spain (207), Germany (202), France (200), Canada (200), Portugal (100), and South Africa (100). Company sizes ranged from small to enterprise. 33% had 10–99 employees. 44% had 100–999 employees. 23% had over 1,000 employees.