A recent study by Techaisle reveals a significant shift in the perception of Market Development Funds, or MDF, among channel partners. The research, which surveyed 4,115 partners, indicates that traditional MDF programs are becoming obsolete, ranking a lowly eleventh in importance for partners seeking vendor support. Instead, partners are prioritizing outcome-based funds, training, and solution development, reflecting a demand for smarter support rather than merely financial backing for marketing activities. The study highlights that 83% of Managed Services Providers prioritize outcome-based funds, emphasizing the need for investments that enhance capabilities and align with customer success. This trend signifies a structural shift in vendor-partner relationships, where partners are moving away from outdated MDF models in favor of more strategic alliances focused on measurable outcomes and sustained growth.
The latest report from Canalys highlights a significant shift in channel success metrics, moving away from mere transaction-focused models to a more comprehensive customer lifecycle approach. Alistair Edwards, chief analyst at Omdia, noted that while the total addressable market across Europe, the Middle East, and Africa is projected to reach approximately $1.4 trillion this year, with 75 percent delivered through partners, the demand for enhanced customer support is increasing. Edwards emphasized that partners must adapt to this evolving landscape, as 67 percent of partners in the region expect business growth this year, with many anticipating double-digit increases. He warned that firms focusing solely on traditional transactions risk falling behind, highlighting the importance of specialization, collaboration, and a forward-looking vision to thrive in a rapidly changing technology environment.
Why do we care?
Traditional MDF? Yeah, it’s on life support.
Techaisle’s latest study surveyed over 4,000 partners, and the message was blunt—MDF ranked eleventh in value. That’s not a dip. That’s irrelevance.
MSPs don’t want budget for more flyers and lunch-and-learns. They want co-investment in outcomes—things like solution development, advanced training, and tools that actually help them deliver success to their clients. That’s what 83% of them said.
Now stack that against Canalys’ latest data: $1.4 trillion TAM in EMEA, 75% going through the channel, and most partners expecting double-digit growth—but only if they shift away from transactions and toward full lifecycle engagement. That’s onboarding, expansion, renewal—the whole ride.
So here’s why we care: The rules of the game have changed. Vendors who show up with dusty MDF programs and call it support? They’re going to get tuned out. Partners want allies who bring strategic enablement—not just money with strings.
What should MSPs do? Start asking better questions. Push your vendors: How does this support help me retain clients? Improve outcomes? Automate my delivery? If they don’t have answers, maybe they’re not your partner.
Time to stop spending MDF on brochures and start building for the long haul. The channel’s evolving. Don’t get left behind.