Channel partner economics are deteriorating fast. According to an Omdia survey reported by ChannelBuzz, nearly 60% of channel partners worldwide expect Q1 profits to fall by double digits compared to the prior year. Less than a third anticipated any profit growth at all, according to the same survey as reported by ChannelBuzz.
The culprits, per the survey data, are familiar: costs outpacing the ability to pass increases through to customers, and hardware vendor pricing pressure alongside order cancellation issues. Both factors compress margins at the partner layer, the businesses that sit between technology vendors and enterprise buyers.
This matters beyond the channel itself. For AI solution vendors relying on partners to distribute, implement, and support AI products, a margin crisis in the channel creates downstream friction. Partners under profit pressure reprioritize higher-margin work. That can slow AI product adoption even when demand exists at the enterprise level.
Survey methodology, including sample size, geography breakdown, and fielding dates, is not detailed in the available reporting. The Omdia data carries legitimate analyst weight, but these figures are survey estimates, not market measurements. They describe sentiment and forward-looking expectations, not Q1 actuals. Watch Q1 partner earnings reports for confirmation.