'Business-model inertia is real’ - GTIA VP of research on the MSP and MSSP transition
The GTIA research head talks shifting business models, cybersecurity lags and the double-edged sword of AI
The global IT channel may thrive on disruption, but when it comes to reinventing itself, it’s not always as agile as the technologies it sells.
That’s the view of Carolyn April (pictured), VP of research and market intelligence at the Global Technology Industry Association (GTIA), who says many partners are still grappling with structural inertia even as customer expectations, regulation, and AI redefine what it means to deliver value.
“Business-model inertia is real,” April tells CRN UK.
“The channel evolves quickly on technology but slowly on reinventing itself, and many MSPs are small businesses for whom new investments, skills, and compliance are a big ask.
“Rising customer demand for cybersecurity will be the force that finally accelerates change.”
It’s an inflection point she’s seen play out across markets.
At GTIA, April’s work focuses on tracking shifts in partner models, emerging technologies, and regional trends, and her latest research suggests stark contrasts in cybersecurity maturity.
“North America is further ahead in prioritising cybersecurity,” she explains.
“In the UK, only about a third of channel partners told us it’s a core part of what they do, while the US is over half.
“Cybersecurity has moved from a specialty to something every technology provider must be immersed in.”
That gap isn’t necessarily down to attitude.
April points to the regulatory environment in Europe as a key factor shaping how partners approach risk, compliance, and privacy.
“European markets face more regulation and compliance, especially around privacy,” she says.
“MSPs there will focus on what’s required by law but may not go beyond those mandated areas. That’s different from markets with fewer compliance pressures.”
For international players, those differences demand homework.
“If you operate internationally, you must be as conversant with local regulations as any native firm,” April stresses.
“Smart companies do their due diligence on GDPR and other mandates before entering a market.
“Some will rightly decide the ROI isn’t there and choose not to expand.”
The channel slower than vendors to profitise AI
That kind of strategic caution is mirrored in how partners are approaching AI.
GTIA’s research shows a sharp divergence between the optimism of vendors and the pragmatism of MSPs, with only 55 per cent of the latter expecting to make a profit on their AI investments this year.
This is up significantly from 34 per cent in 2024, but still nowhere near the profitisation potential on the vendor side.
“You can’t lump partner AI revenue expectations in with vendors’,” she says.
“Vendors are building datacentres, creating software and tools, and selling aggressively, so their returns look very different.
“Partners downstream are experiencing another reality.”
For most service providers, that reality starts at home.
“Most partners’ first AI use case is internal, for things like automating service desk tasks and running the business more efficiently,” April says.
“That can boost profitability through cost savings, but it’s not top-line revenue.
“On the sell side, many are doing AI consulting to help customers figure out where AI actually fits.”
The challenge, she notes, is that efficiency gains rarely make headlines and the financial impact is still opaque.
“I don’t have hard numbers yet on average cost savings from AI for MSPs,” she admits.
“Internally, partners are automating back-office work and even sales and marketing functions, redeploying people to higher-value tasks.
“It may take a couple of years before we can quantify those gains reliably.”
Ethical AI?
Still, it’s not just the numbers that matter, but also the cultural and ethical reckoning that comes with automation.
April is candid about her ambivalence.
“AI is one of the most ethically challenging shifts businesses will face.
“I’m of two minds about it. There are real benefits, and there are real worries about which parts of our jobs become dispensable.
“We’ll need to rethink how humans fit into the workplace, but we’re not at full dispensability.”
That conversation dovetails with a larger transformation in how partners define themselves.
GTIA’s research shows that the traditional boundaries between reseller, MSP, and consultant continue to blur, but the mindset shift is undeniable.
“We’re at the peak of MSPs identifying as services businesses rather than product sellers,” April says.
“Customers are abstracted from the ‘brand of the tech’ and care far more about outcomes, like faster call-centre response times, than what’s under the hood.
“The channel’s identity is now about delivering business results.”
It’s a moment of both maturity and momentum, according to April. And if that sounds daunting, she sees it as inevitable.
“Every major shift in this industry has started with discomfort,” she says.
“This one’s no different. But the partners who lean in now, embrace compliance, build trust around AI, and position themselves as true business enablers, will be the ones defining the next era of the channel.”