I've discovered something that should alarm every technology vendor. They're accidentally taxing their best partners out of existence.
The tax isn't financial. It's administrative.
Every manual deal registration form, every vendor portal login, every duplicate data entry creates friction. MSPs pay this tax with their most valuable resource: time.
The cost is staggering. GTIA research reveals that 54% of channel firms now participate in just 1-9 vendor programs. The sweet spot has dropped to 5-9 programs.
This represents a massive consolidation. In previous years, healthy channel firms typically participated in 10+ vendor partner programs.
The Iceberg Problem
Vendors see only the tip of their partners' capabilities. They're making partnership decisions based on incomplete data because MSPs can't afford to register every opportunity.
Deal registration requirements create artificial barriers. Programs typically focus on large new sales while ignoring expansion opportunities and run-rate business.
The result? Vendors miss the steady revenue streams that actually indicate strong customer relationships. They can't identify churn patterns or understand which partners have real vertical expertise.
Microsoft has partially solved this with tenant and partner ID linking. Most SaaS vendors remain stuck in the stone age.
The Perfect Storm
Here's the irony. Technology companies preach digital transformation while forcing partners through manual processes.
Even when APIs exist, they're designed for Salesforce or HubSpot. MSPs actually live in PSA systems like Kaseya and ConnectWise.
Building and maintaining these integrations becomes another administrative burden.
The mismatch forces MSPs to be hyper-selective. They can only maintain a handful of vendor relationships properly.
The Real Transformation
I see a different future. One where administrative overhead disappears and MSPs can focus on what matters: building vertical expertise.
Imagine MSPs orchestrating multi-vendor solution campaigns for legal firms or dental practices. Instead of generic product pitches, they'd deliver business outcome-focused solutions backed by verified case studies.
This isn't wishful thinking. It's Level 1 Due Diligence made automatic.
When buyers can instantly verify an MSP's Microsoft Gold Partner status or specific certifications, trust becomes proof-based rather than promise-based. Real world algorithms in buyers' circles of trust become visible and verifiable.
The Bigger Unlock
The administrative tax creates a double penalty. MSPs lose productivity while vendors lose visibility into their channel's true capabilities.
Solving both sides of this equation transforms the entire ecosystem. Customers connect with the right technology stack and implementation partners faster.
The result? Shortened sales cycles and reduced churn across the board.
The administrative tax is optional. The question is whether vendors will recognize this before they lose their best partners to the handful of programs that MSPs can actually afford to maintain.