Sage – which provides accounting, financial, HR and payroll technology for SMBs, released a study concerning the evolving role of technology channel and reseller partners in the U.S. and Canada. The report indicated a shift from point solutions providers and integrators to strategic advisors for SMBs, thus helping to unlock growth opportunity and paving the way for improved digital agility.
SMB demand for digital advisory services fuels IT channel growth survey included responses from 2,800 technology channel decision-makers, worldwide, to better understand the key drivers impacting the IT channel and reseller market.
Of note, the majority of tech resellers in the U.S. (59 percent) and Canada (52 percent) have shifted their focus toward strategic advice and services to improve SMB ability to adapt to market shifts, technological breakthroughs and evolving customer demand. Additionally, U.S. (73 percent) and Canadian (74 percent) SMBs largely see investment in digital agility as a “high priority” for driving business growth (30 percent), enhancing competitiveness in the U.S. (25 percent) and increasing efficiency in Canada (26 percent).
“These findings mark a significant shift within the channel industry. The move toward more personalized solutions and stronger customer relationships is revolutionizing our support for SMBs,” says Sippora Veen, VP global partner marketing, Sage. “With the adoption of advanced technologies like AI, and a commitment to building skills, we are better positioned to help SMBs face challenges and thrive in the digital era. This collaboration is essential for fostering innovation and mutual growth.”
Additional key findings include:
- Shifts to advisory roles, with U.S. and Canadian channel leaders split on what is driving the shift to advisory roles. In the U.S., leaders cited the use of technology and data analytics for personalized solutions (59 percent), increased competition in the market requiring differentiation and value-added services (57 percent) and the desire to build stronger customer relationships (55 percent).
- Digital agility of SMBs, with Canadian (64 percent) and U.S. (51 percent) SMBs recognized as ‘fairly digitally agile’ by channel leaders, highlighting quick technology adoption to enhance efficiency and customer experience. At the same time, 39 percent of U.S. and 28 percent of Canadian partners feel SMBs are adequately prepared for future disruptions
- Challenges in driving digital agility, with the main obstacle preventing channel partners from effectively supporting SMBs being the complexity of technology and integration processes. In the U.S., channel partners face significant challenges in providing advisory services, primarily due to keeping up with evolving technology and balancing priorities (both at 48 percent), along with SMB resistance to advisory services (45 percent)
- Adoption of innovative technologies, with most U.S. channel partners focused on driving the adoption of innovative tech (59 percent), while 52 percent of Canadian resellers are prioritizing offering strategic advice and solutions. This is to ensure that SMBs access and effectively utilize technology to enhance responsiveness and competitive edge.
- Critical technologies, as channel leaders in both Canada (62 percent) and the U.S. (56 percent) believe cybersecurity solutions are the most instrumental in fostering digital agility. AI and automation followed closely, with 58 percent (Canada) and 56 percent (U.S.) finding these as the second most critical technologies. Focusing on these areas, it is believed, can enhance SMB efficiency and security.
Sage’s research underscores the importance of deepening collaboration between IT resellers and SMBs to fully harness new technologies and enhance resilience against market changes. By focusing on areas like cybersecurity, digital transformation, and operational efficiency, IT resellers can boost their growth while helping SMBs successfully navigate these challenges.
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