AI & specialisation fuel high-performer growth in software channel
A recent IDC study commissioned by Sage has revealed how high-performing software channel partners are using artificial intelligence and targeted specialisation to deliver measurable business outcomes.
Growth and performance
The research, which surveyed more than 2,000 software resellers across global markets, including Canada, identifies a segment of high-performing partners who reported 20% or more revenue growth over the past two fiscal years. The study found that 63% of all partners achieved double-digit yearly growth, with 84% of high performers targeting at least 20% growth this year.
Financially, these high-performing partners are also seeing a 66% average gross profit margin, compared to a global average of 42%. Customer advocacy is notably higher, as shown by an average Net Promoter Score (NPS) of 61 among high performers, versus a global benchmark of 48.
AI adoption and measurable ROI
The deployment of artificial intelligence stands out as a key differentiator. In both Canada and globally, around 70% of channel partners say they have an AI practice, which often includes reselling or implementing software with built-in AI capabilities. Among high-performing partners, 87% report having a dedicated AI practice.
More significantly, 60% of these high-performing partners state that most of their customers are already seeing measurable business impact from AI adoption in areas such as workflow automation, error reduction, and improved compliance.
"High performing partners are building growth on innovation that delivers outcomes. They lead with customer outcomes, invest in AI as a differentiator, and run disciplined, services-led models with clear vertical focus. This cohort is translating technology into higher margins, faster time-to-value and stronger customer advocacy. Their success is repeatable, and their model is setting the pace for the next evolution of the channel," says Stuart Wilson, Senior Research Director, EMEA Partnering Ecosystems.
Specialisation in micro-verticals
The study underscores the increasing focus on industry-specific specialisation. Nearly 70% of high-performing partners are now providing micro-vertical solutions-offerings tailored to the distinct needs and compliance requirements of particular industry sectors. This approach reportedly helps customers realise value more quickly without significant customisation, while providing partners with smoother service delivery, less rework, and increased opportunities for in-life revenue growth.
On branding, the report notes that seven in ten partners give substantial weight to collaboration with software providers possessing strong market reputations, with around a third identifying brand selection as the most crucial factor in their partnerships.
Investment strategies and Canadian context
The research found that 33% of high-performing partners view investment-whether in services, vertical expertise, or proprietary intellectual property-as a strategic, company-wide priority to support scaling and transformation.
For Canadian partners specifically, the research highlights both strengths and challenges. Seventy per cent of Canadian channel partners report running an AI practice. While 76% see themselves taking on a more strategic 'trusted advisor' role for their clients rather than remaining transactional sellers, nearly half (49%) cite budget constraints as the top barrier to technology investment. In addition, 44% of Canadian respondents identify a lack of skilled resources as a primary internal barrier to achieving higher performance.
"Partners who win put customers first, specialise where it counts, and apply AI to real problems. Sage helps them scale those strengths to unlock growth and accelerate time to revenue so they can lead the next wave of innovation. That's the ecosystem we're building together," says Juha Harkonen, VP Partner Ecosystem, Sage.
Dan Caringi, Partner at MNP Digital, commented on the approach his company takes to client relationships and technological deployment:
"Success comes from focusing on what really matters to your business. By committing to industry specific solutions, we don't just implement technology, we speak our client's language, understand their workflows, and solve for compliance and business challenges. Our collective goal is to simplify the complex, and turn technology into an advantage, demystifying emerging technologies, and helping clients take meaningful steps forward at pace that makes sense for their business. There's no one-size-fits-all approach; real results come from understanding our clients' domain and partnering for mutual success with the right people, processes and technologies."
Sector-wide implications
The IDC study suggests the software channel is shifting towards an environment where high performance-previously a distinguishing advantage-may become the standard. The research signals a broader sector transition away from product-based sales towards a lasting focus on customer outcomes, strategic enablement, specialisation, and investment in trusted relationships.
The findings indicate that as this evolution continues, channel partners who adopt these behaviours will be best placed to drive growth and shape the future of software distribution and services.
