Scale is no longer optional. That's the clearest message from a wave of M&A activity reshaping the IT channel, as vendors, distributors, MSPs, technology advisors and platform operators all move to bulk up or get left behind.
Consolidation pressure is coming from multiple directions at once. Broadcom's VMware partner purge created a vacuum that 11:11 Systems has been systematically filling, one acquisition at a time.
Microsoft cut two-thirds of its global distributors, then handed marketplace integration rights to just five companies. TD Synnex CEO Patrick Zammit told Channel Dive that Dell and "many, many" others are next. For the partners caught in the middle, the message seems to be: get big or get tiered.
MSPs are responding by buying VARs. That's not because VARs look like them, but precisely because they don't. Deep customer relationships and project-based revenue are suddenly more attractive than another recurring-revenue clone.
Meanwhile, private equity is flooding the technology advisor space, drawing comparisons to insurance brokerage consolidation — a market that took decades to mature but ultimately rewarded scale.
This week, AppDirect's acquisition of PartnerStack signals that even the infrastructure of partner management is being consolidated.
Not everyone is selling. Sandler Partners is staking out a counterposition, betting that the boutique experience becomes more valuable as everything else gets swallowed whole.
The deals keep coming. The question for every channel firm is the same: are you acquiring, or are you about to be acquired?
Here’s a selection of stories from the last few months detailing salient deals and trends shaping channel consolidation.