Overview

Challenges

The critical transformation occurring in the technology industry, driven by a shift from one-time product sales to recurring revenue models, is creating new challenges for vendors and their partner ecosystems. Traditional structures are misaligned with modern expectations of value creation, particularly in the burgeoning field of artificial intelligence (AI). This publication will put forth the argument that, to remain competitive, vendors must evolve their partner strategies, focusing on enabling partners to drive customer outcomes rather than merely facilitating transactions.

Summary

The article discusses the fundamental transformation in the technology industry as businesses transition from one-time product sales to recurring revenue models. This shift presents both opportunities and challenges, particularly for partners who must adapt to new market dynamics driven by artificial intelligence and evolving business models. To succeed, vendors and partners need to redefine their collaboration strategies and focus on delivering continuous customer value.

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Included in the full report

Transformation to Recurring Revenue:

The shift from one-time transactions to subscription-based models requires a complete overhaul of partner strategies to focus on long-term customer engagement.

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AI as a Game Changer:

The rise of artificial intelligence presents opportunities for creating new service categories but also exposes gaps in skills and outdated business models.

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Profitability Struggles:

Traditional partner profitability models are becoming unsustainable in the subscription economy, requiring a realignment of economic structures and incentives.

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Channel Drift Risks:

Misalignment between modern offerings and legacy partner structures can lead to channel drift, necessitating updated metrics and reward systems aligned with customer outcomes.

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Focus on Partner Services:

Future strategies should emphasize build, run, and grow services that drive customer success beyond initial sales, fostering sustainable relationships and revenue growth.

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Publication date:

October 28, 2025

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