Opens in a new tab
News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers

Daily News / Business Strategy, Product & Company Updates

Active vs. Joined Partners: The Overlooked Risk in Vendor Programs

On the go? Listen to the Audio Podcast instead

Read this news instead

Your Host

Dave sobel, host of the business of tech podcast
Dave Sobel
Dave Sobel is a leading expert in the delivery of technology services with broad experience in both technology and business. He owned and operated a technology solution provider for over a decade, and worked for vendors leading community, marketing, product strategies, and M&A activities.

This content is made possible by community-minded viewers like you

Thank you

Support Business of Tech

Episode Description

Vendor channel programs are structurally organized around metrics and incentives that prioritize initial partner acquisition over long-term partner viability or growth. Analysis of policies and practices at firms like Dr. Backup, Microsoft, and Arctic Wolf highlights that most vendors track and publish partner sign-ups (“joined”) but seldom disclose the ongoing, active partner count or revenue growth among partners. This structural approach creates a visibility gap and misaligns vendor and partner incentives, presenting ongoing governance risk for MSPs and IT providers.

The purchase of Dr. Backup by Hosvara, led by Nancy Henriquez, highlights this disconnect. Public figures claim over 300 partners in the Dr. Backup program, but only 125 are active according to Henriquez—meaning more than half of all partners have left. This attrition is not unique. Industry survey data from Techaisle shows that 72% of vendor incentive spending happens at deal closure, while 41% of MSP revenue derives from renewals. Vendor programs often fail to account for long-term partner success, incentivizing sign-ups instead of sustainability.

Additional developments reinforce this structural pattern. Microsoft’s retirement of its Azure Expert MSP tier by January 2027, alongside Arctic Wolf’s introduction of a new partner program tier for smaller MSPs, both reflect vendor-driven changes to partner structure that serve corporate strategy rather than address partner outcomes. Scorecard models and published partner metrics remain opaque to most participants, making it difficult to evaluate the stability or effectiveness of a given partner program.

For MSPs and IT leaders, these structural dynamics amplify contract risk and operational complexity. Reliance on vendors that refuse to disclose active or growing partner numbers leaves service providers exposed to sudden program changes, with migration and customer disruption costs that are rarely priced in advance. Practical safeguards include demanding transparent partner retention data during contract negotiations, aligning agreement terms with visible vendor commitments, and budgeting explicitly for client migrations tied to vendor program volatility.

00:00 Why She Bought The Partners
05:26 Vendors Pay For The Sale
07:34 Moved When The Map Changes
10:39 Why Do We Care?

Supported by:
USecure https://usecure.io/product/uhealth
Pax8 https://pages.pax8.com/managed-intelligence.html?utm_source=third_party&utm_medium=advert&utm_campaign=4906_pax8_small_biz_thoughts_podcast_campaign_2026&utm_term=third_party_newsletter_banner_ad
Mailprotector https://mailprotector.com/lp/shield/?utm_campaign=22358800-MSP%20Radio&utm_source=businessoftech&utm_medium=supporters-page&utm_content=logo-listing

💼 All Our Sponsors

MSP Radio is supported by our partners:
ABC Solutions — https://go.businessof.tech/p/abc-solutions-yt
CometBackup — https://go.businessof.tech/p/cometbackup-yt
FireTail — https://go.businessof.tech/p/firetail-yt
Guardz — https://go.businessof.tech/p/guardz-yt
HaloPSA — https://go.businessof.tech/p/halopsa-yt
LogMeIn — https://go.businessof.tech/p/zz-duplicate-merged-into-goto-logmein-aug-11-2026-safe-to-delete-yt
Mailprotector — https://go.businessof.tech/p/mailprotector-yt
OpenText — https://go.businessof.tech/p/opentext-yt
Pax8 — https://go.businessof.tech/p/pax8-yt
Proofpoint — https://go.businessof.tech/p/proofpoint-yt
Rythmz — https://go.businessof.tech/p/rythmz-yt
ScalePad — https://go.businessof.tech/p/scalepad-yt
TimeZest — https://go.businessof.tech/p/timezest-yt
Transit AI — https://go.businessof.tech/p/transit-ai-yt
USecure — https://go.businessof.tech/p/usecure-yt

Supporting the IT services community through insights, analysis, and transparency.

⸻

🚀 Join The Small Biz Thoughts Community

The membership for independent MSP owners: vendor intelligence, member-only briefings, a private peer forum, and direct access to Dave.

👉 https://smallbizthoughts.org/join/

⸻

🎧 Subscribe to the Business of Tech

Want the show on your favorite podcast app or prefer the written versions of each story?
📲 https://www.businessof.tech/subscribe

⸻

📰 Story Links & Sources

Looking for the links from today’s stories?
Every episode script — with full source links — is posted at:
🌐 https://www.businessof.tech

⸻

🎙 Want to Be a Guest?

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:
💬 https://www.podmatch.com/hostdetailpreview/businessoftech

⸻

🔗 Follow Business of Tech

LinkedIn: https://www.linkedin.com/company/28908079
YouTube: https://youtube.com/mspradio
Bluesky: https://bsky.app/profile/businessof.tech
Instagram: https://www.instagram.com/mspradio
TikTok: https://www.tiktok.com/@businessoftech
Facebook: https://www.facebook.com/mspradionews

Choose your upgrade:

Get the full benefits of Business of Tech Plus

Insider Access

$12/month

Perfect for MSPs and ITSPs that want full interviews, early access, and ad-free listening

  • Programmatic Ad-free private podcast feedSame show, little interruptions
  • Channel Chatter previews1–2 topics with light insights
  • Early access to interview episodesHear it days before public release
  • Monthly Insider BriefTighter analysis you can share internally
  • Extra audio segmentsCut interviews, behind-the-scenes commentary, quick competitive notes
  • Become an Insider for $12/month

    Leadership Access

    $149/month

    Perfect for MSPs and Vendors that run a team and need the extended tactics, executive summaries, and weekly alignment brief

  • All Insider Access benefits plus . . .
  • Invite your teamIncludes access for 5 team members with option to add more
  • Vendor Strategy BriefsThe entire library, plus new analysis every month
  • Channel ChatterAll topics, full insights, complete vendor discussion + sentiment list
  • Quarterly State of the Channel Briefing
  • Monthly AMA submission priorityAsk Dave direct questions, and skip the line
  • Get the Leadership Edge for $149/month

    Vendor Partner

    $500/month

    Perfect for channel companies or vendors looking to deepen their engagement with the show.

  • All Leadership Access benefits plus . . .
  • Get highlighted as a show sponsor You'll get placement in the show notes, throughout the website, and on our dedicated sponsors page.
  • Enjoy regular shout outs You'll be featured in a rotating format during the show
  • Become a show sponsor for $500/month

    Search all stories