If you are not up to speed on the channel, it is important to understand the basics. When we use the general term Channel Partner to include “VAR” (Value Added Reseller), “MSP” (Managed Services Provider) as well as ITSP (IT Solution Provider). MSSPs and focused on Security. ISVs (Independent Software Vendors) are very different and there are already over 100,000 ISVs. There are several names that companies who sell IT solutions prefer to be called. It can be a “mouth full” to include all of the possible names so we tend to use “Channel Partner” as a general default term to represent all companies that sell IT solutions to end-customers.

That said, there are distinct differences between traditional VARs, MSPs, ITSPs, MSSPs and ISVs. In general, VARs sell more hardware products as well as services, including some managed services. MSPs tend to primarily sell managed services on a recurring monthly basis but are also selling hardware to drive services. ITSPs typically offer whole solutions to specific types of customers that can include hardware, software and services, including application development. ISVs have developed specialized applications to solve specific business problems and work with everyone to sell including direct to end-users. MSSPs are focused on everything security.

And, don’t forget Influencers, DMR, POS, Retail, Consultant and so on. There are many different labels! None of which has any meaning to the end-user.

The lines between all these companies are blurring more as each day passes. It may ultimately depend on the percentage of what each company sells when it comes to products, solutions and managed services. Regardless of what each of these companies do, the next generation of “Channel Partners” will be selling a significant amount of recurring revenues, including a variety of Managed or Cloud services. Most every company will have to deliver a comprehensive IT Security service in whatever they sell.

With the recent pandemic accelerating the digital-first economy, the race is on towards the digital transformation to the next generation channel. The next decade of the channel business starting in 2020 will be quite interesting.