Three quarters of channel firms hold a strong (32%) or good (43%) outlook about their prospects for 2025, according to the GTIA Industry Outlook 2025. That’s positive news, but it doesn’t mean solution providers and MSPs—nor tech vendors and distributors—can afford to rest on their laurels.
Differentiation, new ecosystems, consolidation and advanced cyber threats are just some of the things that IT channel execs should be thinking about this year, according to members of the GTIA Channel Development Advisory Council and other GTIA member groups. We asked GTIA member leaders about their thoughts for 2025. Here’s what they had to say.
MSP Differentiation Will Be Critical
"Recent data shows that while revenue growth has generally slowed for MSPs, they are still achieving higher profitability by leveraging knowledge gained from the community. As a new U.S. presidential term begins and potential tariffs loom, operational efficiency and differentiation through value-added services will remain crucial for MSPs." - Vicky Bruns, principal product marketing manager, ecosystem, ConnectWise
Consolidation Will Be Driven by Governance, Efficiencies
“There is a market of smaller MSPs around the $1 million mark that will find the risks and costs of supporting clients too high and drive them toward one of two paths: 1. there will be accelerated consolidation activities via M&A where they (or their clients) get rolled up into bigger MSPs. or 2. there will be more collaborations between services providers, where one MSP buys complete services from another (larger) MSP to gain efficiency. For smaller MSPs the costs of building their own services will be more difficult in competitive markets.” – Travis Woods, CEO, FortPoint IT
Cyber Growth Driven by New Threats, Regulations
“In 2025, I believe the security market will see big growth in data security, driven by rising cyber threats and regulatory demands. CMMC certification will become essential for defense contractors, fueling investments in compliance and training services. Increased funding from governments and private investors will support cybersecurity innovations and initiatives, leading to a surge in startups focusing on niche security technologies and lots of acquisitions. Organizations will prioritize comprehensive risk management strategies, integrating advanced security measures to enhance resilience and maintain competitive advantages in a rapidly evolving data governance landscape.” – Joshua Jones, vice president, security specialists, Tevora
Vendor Programs Need to Adapt to New Ecosystems
“Vendors must realize and accept that partner ecosystems have changed drastically in recent years and adapt their channel approach accordingly. Outdated programs that rely on the traditional resell model aren't enough to incentivize a robust community of MSPs, SIs, consultants, agencies and the like. Vendors must take a long, hard look at the behaviors they want to incentivize their channel partners for, and design programs, incentives, and ecosystems to encourage those.” – Kris Blackmon, director of partner marketing, AvePoint
Modernizing IT Should Be Priority
“As IT industry members, we have a responsibility to take clients on a technology journey, showing them what is possible, driving what can be achieved and helping to add value to their businesses. Educating clients around modern IT is essential in getting them thinking about future possibilities.” – Scott Atkinson, CEO, TribeTech Pty Ltd
Information Risk Management Will Be Key Opportunity
“Anti-virus is a thing of the past. Table stakes these days are AV / EDR / 24x7 security operations center (SOC), phishing awareness training and dark web monitoring. However, they are technical elements of broader issue—managing information risk. Data is the new currency. Information risk management is new (compared to traditional risks that Boards deal with). There is a key opportunity to work with client Boards and management teams to help them understand information risk and ensure appropriate mitigation steps are in place.” – Scott Atkinson, CEO, TribeTech Pty Ltd
Cloud, SaaS Continue Competitive Advantage
“Servers, infrastructure and key business applications that were designed or developed around legacy technology models are expensive to maintain and can hold back innovation. Organizations that keep technology current and effectively utilize cloud and SaaS applications will have competitive advantages over businesses with legacy solutions.” – Scott Atkinson, CEO, TribeTech Pty Ltd
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