RESEARCH
Channel transformation gains urgency
Quocirca’s State of the Channel 2026 study reveals growing customer demand for cloud, workflow, security and AI services, but highlights execution and enablement challenges for print channel partners
Quocirca’s new State of the Channel 2026 study reveals a sector in a critical evolutionary phase. Channel partners recognise the need to diversify beyond traditional print revenue streams, but many face persistent challenges in transitioning to offer services-led business models. Based on findings from a survey of 144 channel partners conducted in June and July 2026, the report explores how partners are responding to changing customer requirements, declining print volumes, growing digitisation demands and evolving vendor relationships. Modest growth expectations Print industry channel partners remain broadly optimistic about their future prospects. Half of respondents expect revenues to increase in 2026, compared to 2025, and a further 27% expect them to remain stable. Growth expectations are modest, with respondents forecasting average revenue uplift of just 3.5% in 2026. Against a backdrop of inflationary pressures, rising operating costs and ongoing print volume decline, future growth will depend on success in offering cloud, workflow, security and information management services that clearly link to business outcomes. However, IT services such as these currently account for just 21% of channel partner revenue on average, suggesting that, while they are part of the channel mix, they are not yet a substantial growth engine for most partners. Partner challenges The most pressing challenge for the channel is expanding digital and software services, cited by 41% of respondents, followed by the integration and application of AI (40%). Driving innovation across products, services and business
models is cited by 31%, and aggressive cost reduction and operational efficiency is a priority for 29%. This indicates that partners are more focused on building new propositions and business models rather than simply driving down costs. This is a positive signal if partners can make informed decisions about where to focus investment successfully. Growth opportunities The study also shows that traditional print revenues face continuing pressure. 72% of partners expect customer print volumes to decline over the coming year, with an average reduction of 7.5%. At the same time, 57% anticipate rising scan volumes, forecasting average growth of 6.2%. However, only 27% of those surveyed currently monetise scanning activity, highlighting a significant opportunity to develop new revenue streams around document capture, workflow automation, compliance and information management. Partners are seeing the strongest customer demand in cloud-based services, with more than half (52%) of respondents identifying cloud print management and services as a leading customer requirement. Digital workflow automation (46%), secure products (44%), and print security solutions (43%) are also customer focus areas, highlighting where growth potential lies. Vendor enablement The report further highlights the growing importance of sustainability. While 53% of partners report moderate or strong customer interest in sustainable products and services, many continue to seek better vendor support in areas such as lifecycle impact metrics, energy consumption data, training, certification and financial incentives that help create compelling sustainability-led customer propositions.
A recurring theme throughout the study is the importance of vendor enablement. Only 8% of respondents describe their primary vendor’s partner programme as highly effective, with many citing gaps in pre-sales support, sales collateral and practical guidance for selling more sophisticated services portfolios. Louella Fernandes, CEO, Quocirca said: “Channel partners clearly understand where the market is heading. The challenge is no longer one of strategy but one of execution. The transition from familiar hardware-focused sales models to services-led business transformation requires new skills, new commercial approaches and stronger vendor support. Those that move quickly will be better positioned to capture emerging opportunities in cloud print, workflow automation, security and AI-enabled information management.” The channel’s priority for the year ahead is clear: accelerate execution, build services-focused capabilities and create measurable value across print, cloud, workflow automation, security and information management. Louella argues that the channel’s future relevance will depend on its ability to connect print to wider business outcomes. “Partners need practical enablement that helps them sell and deliver services more effectively. Vendors that invest in stronger training, pre-sales resources, certification programmes and commercial frameworks will be best placed to accelerate channel transformation and strengthen partner loyalty. “We are seeing rising activity from vendors in partner enablement, as many seek routes to market for their own diversifying services offering, but this will take time to translate into the transformative momentum that will shape the channel’s future,” she concluded. www.quocirca.com
30
01732 759725
Powered by FlippingBook