Simplicity is the channel's next competitive advantage

On the face of it, the channel model is the perfect arrangement. Partners gain access to technologies and revenue opportunities they could never build alone. Customers benefit from top-drawer advisers who can bring together the right solutions for their needs. And vendors get to extend their reach into markets and sectors that would be impossible to serve directly. Everybody wins.

So why is there so much friction in the channel, and why is it seemingly getting worse? A report by the global channel trade association – the GTIA – found that satisfaction with vendor relationships has declined year over year, falling from 39% in 2025 to just 18% in 2026. 

The reasons cited in the report touched on a number of challenges, including the rise of AI. But there are other issues as well, such as the sheer complexity and administrative burden of setting up and maintaining a properly functioning partner program. 

The hidden operational cost for partners

The result is that staff end up spending a disproportionate amount of time running the program rather than working with customers. 

Sales teams are forced to spend time on administration rather than selling. In some cases, people are employed for no other reason than simply to carry out the back-office functions of running a program. 

There are certification and recertification requirements. Time is spent completing mandatory training courses, as well as tracking and maintaining multiple vendor accreditations. 

Then there are the onboarding processes for new vendor relationships, managing multiple partner portals and logins, deal registration administration, and rebate and incentive program management. And let’s not forget the inconsequential task of monitoring program changes, updates, and new requirements. 

The operational cost of running some programs is becoming a real burden. And it’s happening because somewhere along the line, the channel has started to mistake complexity for sophistication. 

In other words, the IT channel has become so focused on complicated products, architectures, services, and business models that it assumes something is better simply because it is more complex.

Little wonder, then, that when the conversations dwell on such matters, they ‘risk turning into therapy sessions about how bad some programs are’.

Clearly, one approach to handle increased complexity is to invest in platforms, processes, and people to handle it. In fact, the channel ecosystem has become so convoluted that an entire specialist software sector has emerged to help vendors manage the process. 

The 2025 Canalys Channels Ecosystem Landscape report found that there are 261 companies – driving $7.46 billion in revenue in 2024 – simply to help companies ‘design, develop, execute and manage a broad channel partner and alliance ecosystem’.

Simplicity is becoming a competitive advantage

The other approach, though, is to make them simpler – something that really hit home during a recent bucket-list trip to Italy. 

Life there moves at a different pace, and it pushed me to reassess how I look at things – not just personally but also in terms of my work with the channel as well. I have to say that it has reshaped my own thinking in terms of making things simpler, clearer and less complicated.  

For me, that means going back to basics. And I think it can be boiled down to four core areas. 

First, vendors need to simplify the rewards and incentives on offer. As we’ve seen repeatedly, complex incentive structures, overlapping programmes, and opaque reward mechanisms tend to create unnecessary administrative effort and uncertainty. In reality, partners should be able to clearly understand how their investment translates into benefits. 

Second, sales enablement needs to focus on capability, not box-ticking compliance. Training, certifications, and specialisations should help partners solve customer problems and grow their expertise, not tie them up in unnecessary red tape.  

Third, there should be a laser-like focus on improving the overall partner experience. Portals, onboarding processes, deal registration systems, and day-to-day workflows shape how partners experience a vendor. As I mentioned earlier, small points of friction can quickly accumulate into a significant operational burden. 

Finally, vendors need to create greater commercial predictability for their partners. After all, they need to make decisions about hiring, training, and business development based on expected returns. Without clear discount structures, transparent requirements, and predictable program rules, how can partners be expected to plan and invest with confidence?  

In fact, I’m so convinced that this is the right approach that I would argue that simplicity is becoming a competitive advantage. After all, partners have finite time and resources to deal with such matters. Vendors that respect those constraints, through clear programs, predictable rewards, streamlined processes, and reduced friction, are much better placed to succeed.