Revenue from traditional hardware sales is shrinking as partners lean into services that solve deeper client problems. According to recent analysis, hardware has dropped to only 13 per cent of partner profitability, while consulting, implementation, and managed services are driving growth and diversification across solutions providers.¹
For distributors and resellers alike, embracing deployment services — from planning and logistics to installation and validation — can become a vital differentiator. It has become a key strategic lever that enhances customer experience, maximises margins in hardware deals, and helps partners secure long‑term business value. While many channel organisations are adopting services that focus on configuration, cyber-security, maintenance, asset disposition and more, deployment remains a powerful tool in providing customers with highly visible and tangible outcomes that encourage repeat business. However it is frequently neglected in favour of vendor-aligned services² that often only cover the pre-deployment and decommission stages of asset lifecycles.
Channel influence is growing but must shift towards services. The latest forecasts from Canalys show that 70 per cent of customer IT spending across products, services, and telecoms will flow through partners in 2025, emphasising the ongoing importance of the channel in shaping customer technology decisions.³ However, while hardware remains essential, it no longer drives the majority of profitability within partner portfolios.¹
This shift signals that partners can no longer depend on hardware transactions alone. Instead, services that help customers adopt, integrate, and operationalise technology are where margin and differentiation increasingly lie.
Customers are increasingly focused on straightforward outcomes. Enterprise technology buyers are prioritising risk mitigation, resilience, and business continuity more than ever. Digital resilience has moved from a technical consideration to boardroom strategy discussions, with channel partners positioned as critical partners who understand both the technical and business implications of technology decisions.⁴
Physical deployment and implementation services directly address these concerns. When partners take responsibility for planning, staging, transporting, installing, and handing over infrastructure that works reliably from day one, customer experience improves measurably and partners build deeper trust that extends well beyond the sale.
Hardware deals must become turnkey engagements. For many channel partners, the traditional model ends when hardware is shipped. The emerging opportunity lies in guiding the entire process from procurement to operational readiness. This involves:
- Discovery and planning: Understanding site constraints, dependencies, timelines, and customer expectations before equipment is ordered.
- Specialist logistics: Ensuring equipment arrives safely, in sequence, and ready for implementation at multiple sites or complex environments.
- Installation and validation: Completing cabling, configuration, testing, and handover so the customer’s systems are operational without unnecessary delays.
This turnkey approach elevates customer experience as clients no longer have to stitch together multiple vendors or strained internal resources to get technology up and running. They benefit from one partner who orchestrates the work and takes accountability for outcomes.
Strategic services are becoming expected. Industry analysis highlights that the channel is transitioning from traditional “box shifting” to consultative, value‑led engagements.⁵ Partners who combine product knowledge with the ability to advise on infrastructure optimisation, customer workflows, and operational reliability are more likely to stand out in competitive environments.
Customers don’t just want hardware; they want confidence that the solutions will work as promised and continue to deliver value over time, a perspective partners can support through well‑designed service offerings.
The future of the channel will not be defined by who sells the most devices. Instead, it will be shaped by partners who help customers solve real problems, deploy technology with confidence, and maximise business outcomes. Partners that adopt a turnkey mindset, integrating planning, logistics, and installation into a coherent delivery model, will:
- strengthen customer relationships,
- differentiate themselves in crowded markets,
- improve margins on hardware deals, and
- position themselves as trusted advisors.
In 2026, physical services are no longer a nice‑to‑have. They are central to a channel strategy that delivers value beyond the product and builds long‑term customer trust.
- Canalys data on partner profitability mix showing services rising and hardware falling to 13 per cent. https://www.linkedin.com/pulse/hardware-drops-only-13-partners-profitability-mix-2025-jay-mcbain-9i4se (Accessed Jan 2026)
- Cisco’s revamped 360 Partner Program features tools to help partners differentiate and grow through capabilities and advisory value. https://www.itpro.com/business/business-strategy/cisco-looks-to-showcase-unique-value-with-revamped-360-partner-program (Published Jan 27 2026)
- Canalys forecast partner‑delivered IT will account for 70 per cent of IT spending in 2025. https://canalys.com/insights/it-spending-forecasts-2025 (Accessed Feb 2026)
- Digital resilience priorities elevate channel reasoning and advisory expectations at board level. https://www.itpro.com/business/business-strategy/why-digital-resilience-now-belongs-in-the-channel-boardroom (Published Jan 28 2026)
- Evolving channel partner models emphasise consultative, value‑led engagements beyond transactional sales. https://www.itpro.com/business/business-strategy/redefining-the-channel-evolving-partner-models-are-unlocking-innovation-value-and-recurring-revenue (Published Sep 18 2025)