Report examines key drivers impacting the IT channel and reseller market as partners support SMBs on their digital agility journeys by adopting critical technologies to succeed in the digital-first economy.
A new study from Sage, the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), reveals the evolving role of technology channel and reseller partners in the U.S. and Canada. The study indicates a shift from point solutions providers and integrators to strategic advisors for SMBs, unlocking significant growth opportunities and paving the way for greater digital agility.
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The report, ‘Small and medium-sized business demand for digital advisory services fuels IT channel growth’, surveyed 2,800 technology channel decision-makers globally, including in the U.S. and Canada, to better understand the key drivers impacting the IT channel and reseller market today.
The research highlights that the majority of technology resellers in the U.S. (59%) and Canada (52%) have shifted their focus toward providing strategic advice and services, aiming to improve SMBs’ ability to swiftly adapt to market shifts, new technological breakthroughs and evolving customer demands.
The report found that almost three-quarters of SMBs in the U.S. (73%) and Canada (74%) see investing in digital agility as a high priority, believing it will drive business growth (30%), followed by enhance competitiveness in the U.S. (25%), and increase efficiency in Canada (26%).
“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 at 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.”
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Key findings include:
- Shift to Advisory Roles: U.S. and Canadian channel leaders are split on what is driving the shift to advisory roles with U.S. leaders citing the use of technology and data analytics for personalized solutions (59%), increased competition in the market requiring differentiation and value-added services (57%) and desire to build stronger customer relationships (55%). In Canada, leaders attribute the shift to the need to keep up with shifting customer demands (56%) and building stronger customer relationships (53%).
- Digital Agility of SMBs: Almost two-thirds of Canadian SMBs (64%) and half of SMBs (51%) in the U.S. are recognized as ‘fairly digitally agile’ by channel leaders, highlighting their quick adoption of technologies that enhance efficiency and customer experience. However, only 39% of U.S. and 28% of Canadian partners feel SMBs are adequately prepared for future disruptions. Continuous investment in digital tools and training, supported by channel partners, is essential for maximizing the benefits of a digital-first approach.
- Challenges in Driving Digital Agility: The report identifies the main obstacle preventing channel partners from effectively supporting SMBs as 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%), along with SMB resistance to advisory services (45%). Similarly, in Canada, nearly half of the channel partners (47%) cite the complexity of technology and integration processes as the top hindrance to supporting SMBs’ digital agility journey.
- Adoption of Innovative Technologies: The majority of U.S. channel partners are focused on driving the adoption of innovative technologies (59%), while 52% of Canadian resellers are prioritizing offering strategic advice and solutions. This is to ensure that SMBs not only access but effectively utilize technology to enhance responsiveness and competitive edge in a rapidly changing market.
- Critical Technologies: Channel leaders in both Canada (62%) and the U.S. (56%) believe cybersecurity solutions are the most instrumental in fostering digital agility. AI and automation followed closely, with 58% in Canada and 56% in the U.S. finding these as the second most critical technologies. Focusing on these areas can enhance SMB efficiency, and security.
“Having spent over 25 years in the channel, I have observed a shift within the SMB market propelled by the need for growth, competitiveness, and efficiency. More SMBs are now prioritizing digital agility to remain competitive and resilient in a constantly evolving business environment,” says Susan Vincent, Managing Director, Baker Tilly and Sage Partner. “As channel leaders, we must shift towards a consultative approach to support our customers and help them activate the latest technologies with ease. It’s time to adapt and stand out.”
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.
“Digital agility is the new currency for SMBs, and channel partners play a critical role in enabling businesses to leverage innovative solutions that optimize operations, improve efficiency, and enhance profitability. With technology evolving so quickly, it’s crucial for us to stay ahead of the curve and adopt the correct tools as soon as possible,” says Robert Colelli, Managing Principal, Operations, Cresa Toronto. “AI and cybersecurity are key in driving our digital agility and we rely on our IT suppliers to help us identify and deploy the right solutions that are tailored and adaptable to our growth strategy. With their support and invaluable advice, we can navigate the challenges of digital transformation much easier and increase our ability to pivot as necessary in a challenging economic landscape.”
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