GTIA State of the Channel 2026: Complexity is the key driver for demand

Carolyn April, Vice president of research and market intelligence at GTIA, revealed three key pillars to channel growth in 2026 and beyond; the hybrid model, AI and complexity

Technology is becoming more complex with the advancement of AI, and there has never been a better time to be in the channel.

Speaking at the GTIA’s Channelcon EMEA event in London earlier this week and focusing on stats from UK, DACH and Benelux respondents, April said 49 per cent of all firms questioned – including MSPs, IT Solution Providers (ITSPs), VARs and distributors - saw complexity as the number one draw for channel demand.

“Complexity is the biggest positive, believe it or not that the channel identifies as keeping them growing in the future,” said April. “Customers are a bit lost in a lot of technology as it grows and becomes more complex to use – that makes us relevant and that’s going to keep us healthy going into the future.”

Also, key is the fact that most channel firms have retained a hybrid model, rather than focusing all their eggs into one basket.

“The channel today remains a hybrid type of business,” said April. “Most channel companies are not only selling one thing and not only presenting themselves as one business model. The reality is 20 years have gone by since the beginning of managed services and really only about four in 10 of you could identify today as purely a managed services business. Most companies remain hybrid and that diversity is not a bad thing.”

Looking at the channel landscape, 54 per cent of UK and Ireland respondents said it was changing rapidly, compared to 49 per cent in the DACH region and 53 per cent in Benelux. And on a positive note, just two per cent of UK respondents felt the channel was in decline, with the same result in DACH. However, in Benelux, nine per cent said the channel was declining.

The next three top drivers after complexity according to the GTIA were cybersecurity services (41 per cent), AI/Gen AI adoption (37 per cent) and cloud computing (31 per cent).

The top services still creating revenue for the channel were consulting (60 per cent), data services (60 per cent) and break-fix (53 per cent). AI was lower down with 37 per cent of votes, but that is likely to be very different in the coming years as channel firms work out how to monetize it.

Some of the bigger barriers to growth for UK channel firms according to the findings, were the skills/talent shortage (37 per cent), external factors such as geopolitical (34 per cent), weak profit margins (30 per cent) and customer spending remaining stagnant (24 per cent). Both DACH and Benelux placed external factors at the top of the list.

AI is here to stay – get used to it and get on top of it

April said AI was something that cannot be ignored by the channel any longer.

“We are at a major inflection point with AI today. Right now, for the majority of the channel, adoption is not the question. Everybody in some way, shape or form, has adopted AI,” she said.

GTIA’s stats showed the UK and DACH region ahead of Benelux when it came to being ‘AI driven’, with 30 per cent, 31 per cent and 19 per cent votes respectively. Interestingly Benelux was ahead when it came to being ‘AI invested’ at 49 per cent, compared with 43 per cent (UK&I) and 42 per cent (DACH). Again Benelux led the charge when it came to being ‘AI curious’ with 30 per cent picking that option, compared to 23 per cent in DACH and 22 per cent in the UK&I.

Conversely it was the UK&I that led the field when it came to being ‘AI averse’ at five per cent, compared to three per cent DACH and two per cent Benelux.

April said the fact that everyone is at the starting line of AI is one of the biggest challenges for the channel.

“Everybody in the room is getting into AI at exactly the same time and this didn’t happen in the past. You are all at the starting line in a race and everyone is your competitor, so competition is going to be steeper, larger and more difficult to navigate. It is a rapid, rapid change that is going on right now.”

She added that the key to success would be a measured approach.

“Maturity is the game in AI. So you can take your time – not too much time – but do things methodically. Get your house going internally well with AI before you move external. Don’t try and sell stuff that you are not really well versed in as that will end up being a fail down the road. Be operationally disciplined and think about diversity as your friend within your company. Businesses that operate on good fundamentals are the ones that are going to succeed with AI.”