Channel sales are expected to exceed $4 trillion globally this year, with partner-driven deals projected to account for two-thirds of global IT spending, according to research from Omdia. The market is anticipated to grow by 10% year over year, driven by significant investments in artificial intelligence infrastructure and cloud services. Despite this optimistic outlook, challenges persist for partners in the technology sector. Notably, a recent survey indicated that nearly 75% of organizations expect their IT budgets to increase in 2026, a rise from two-thirds the previous year. Omdia emphasizes that partners who enhance their service capabilities will be well-positioned for growth in this dynamic environment.
A recent study by POPX reveals that managed service providers (MSPs) are facing significant integration challenges following mergers and acquisitions, with technological and cultural barriers impeding performance. The State of MSPs Report, based on a survey of 250 UK MSPs, found that 60% of respondents identified platform and system integration, as well as data migration, as top hurdles. Additionally, 44% reported that poor morale and team alignment challenges contributed to operational inefficiencies. Delays in integration can negatively impact profitability and client satisfaction, with 38% of MSPs experiencing client disruption during transition periods.
Why do we care?
Yes, the channel is massive. Yes, budgets are going up. And yes, AI and cloud are pulling spend through partners. All of that is true.
But the same data shows MSPs are struggling with the basics of integration—systems, data, culture—after deals close. That’s not a footnote. That’s the core risk.
The harmful behavior here is mistaking growth for progress. Stacking acquisitions without integration doesn’t create leverage. It creates drag. And drag shows up exactly where MSPs can’t afford it now: margins, service consistency, and trust.
This matters now because AI-driven services are unforgiving. Clients don’t care how many companies you acquired. They care whether their environment works, whether security is consistent, and whether someone clearly owns the outcome.
The channel will keep growing. That’s not in doubt.
The open question is whether MSPs will grow into it—or fracture under the weight of it.