‘The moment that we can really trust AI, then we will be AI-first’: XChange EMEA Day 1 recap

We recap the sessions from day one of CRN’s 2025 EMEA conference

Will the channel go AI-first? And how do smaller service providers demonstrate growth potential and market presence to a potential buyer?

These topics were tackled during day one of CRN’s XChange EMEA conference in The Netherlands.

Channel partners from across Europe gathered to hear how the biggest trends of the year are impacting their market.

The first panel of the day took on one of the biggest themes in the tech space currently - AI.

Sonny Sehgal, CEO of Transputec, and Guy Golan, CEO of Performanta, have both implemented AI tools into their businesses with significant gains.

“We've deployed many solutions internally that we've created ourselves, and we've seen some significant uptake on that, and significant benefits to our business, which have improved not only our bottom line, but the rate at which we can be with customers and the speed at which we can deliver projects and solutions,” Sehgal told the audience.

Meanwhile, Performanta has utilised the tech for marketing, sales and HR.

But what’s missing from the AI conversation, according to Golan, is security.

“I think the level of security is justifiably missing, not only from uploading information, it's also from the idea of how AI behaves,” Golan said.

Sehgal agreed, adding that security becomes a bigger factor as you go up the scale in terms of customer size.

“The bigger the customer, the more they're concerned about security. The smaller the customer, they're not really concerned about security. They're concerned about ‘how do we get our product or service out there?’”

But how much is the channel embracing AI? And will it get to a point where the channel is AI-first?

“My opinion is, if it's not going to be AI-first, it will be AI significant,” said Golan.

“For example, we've got a service called Email Security Management, and there are 12 people in that service, serving clients for their email security, phishing, ransomware, all kinds of bot behavior.

“We just launched an agent, and the 12 people that were in that service are now just two.

“So is it first? I'm not too sure, but it is significant, and the savings are really significant, both to the client and to us.

“The moment that we can really trust AI, then we will be AI-first.”

Sehgal also believes the channel will eventually become “significantly AI-first.”

“I think you need to deploy AI and think about AI to be used vigorously in your business, because if you're not, someone else is going to be using it against you,” he added.

“I think security is still a problem, and trust is still a problem.

“Is the data and the results I'm getting trustworthy? Does it make sense?

“But I think AI-first is 100 per cent.”

Security is not the only deterrent for AI as the anxiety of the tech taking over jobs firmly remains, according to Sehgal.

“The smaller the business, the less pushback. The bigger the business, the larger volume of people you have who are definitely worried about AI,” he said.

“Will it take their jobs? It's doing things better than they could do in a shorter time and that's scary. So, there is definitely a fear factor in the use of AI in larger corporates.

“I don't think AI will replace our jobs. I think the job will be replaced by someone who knows AI better than you do.”

Jobs are safe for now though as the need for human verification is still vital when leveraging AI, Sehgal said.

“I think it's hugely important to verify everything. The person that cuts and pastes the output from ChatGPT to an email is an idiot, to be honest.

“These AI tools are going to give you a head start on something you're trying to achieve, but just get it done quicker. But you need to check it.”

Both Golan and Sehgal have saved time and cost when using AI to their advantage.

The duo lifted the lid on how they’ve then reinvested the money saved.

Performanta has a two-pronged approach to reinvenstment.

“One is back to the client, two is for the development of other AI tools.”

Meanwhile, Transputec has been investing internally to develop more solutions and in training people improve output.

“So you’re still giving back to the customer through improved services.”

M&A in the European tech sector: Opportunities, risks, and market dynamics

Mergers and acquisitions are accelerating across the European tech channel, driven by demand for specialised services in AI, cybersecurity, and data.

To examine how these shifts are redefining acquisition targets, the importance of recurring revenue models for private equity, and the critical role of second-level management and succession planning, the XChange EMEA audience heard from Fabian Brand and Emiel Havinga from Futureproof Group.

Brand told delegates that the increased complexity of IT is a big factor in driving consolidation for smaller service providers.

“Stricter laws and regulations such as NIS2 and DORA are big factors as well. That comes with more responsibility to your clients,” he added.

“Clients are expecting more and more, trusting them more and counting on them more.

“Smaller entities don’t always have the capacity available to adapt to these changes.”

Havinga pointed to demand as another factor.

“Most investors by now have seen that IT services is a very good business to be in as a financial investor, given the recurring nature, inherent growth and future perspective.”

But what models are most attractive to PE firms?

“I think the most important factor is the contracted added value and your resale value,” said Havinga.

“Just being a reseller of Microsoft products is not sufficient to drive valuation.

“Everything depends on what you as a company add to that Microsoft license, in addition to all the other products in order to package that into a full service offering, which is what the customers are asking for.”

Brand also believes the quality of recurring revenue is a deciding factor.

“But the other big thing that buyers are looking at is the contract duration of this revenue.

“You can package it in the right way, but I think most buyers will be more comfortable with acquiring a company under multi-year contracts, versus only annual contracts that renew on a monthly basis.

“Buyers look at a certain type of risk profile and growth opportunities. I think with multi-year contracts, you do capture that low-risk profile.”

The million-dollar question then, is how can these service providers effectively demonstrate growth potential and market presence to a potential buyer?

The answer is to invest in your reputation.

“Make sure you’re known in the community. Reach out, talk to people. See what fits best with your company. Have different conversations with the different types of buyers,” urged Havinga.

Brand added that to demonstrate growth potential is also to be able to show historical growth.

“If you’re able to expand your service offering within your existing client base it gives potential buyers security that you're able to get those clients and improve your service offering for them.”