Free Newsletters for the Channel
Register for Your Free Newsletter Now
Tech Advisors Grew Cybersecurity, Managed IT Revenue in Q3
In a tale as old as time, tech advisors pointed to concerns about their vendor partners in our latest survey.
2 Min Read
tech_BG/Shutterstock
Technology advisors are increasing their revenue across the board, especially in IT-focused categories.
Channel Futures just released the results of its third quarter Market Outlook Survey, which shows agents growing in both headcount and booked revenue. Notably, cybersecurity revenue grew year-over-year for 54% of partners.
The survey yielded results from 55 respondents who identified themselves as technology advisors (TA). A plurality of these companies (33%) were below $1 million annual revenue. The next two largest revenue ranges were $1 million-$2.49 million and $2.5 million-$4.9 million, both representing 19% of the TA community. The majority of respondents (62%) employed between one and 15 people.
Security, Managed IT Revenues Grow
Partners shared how their booked revenue in the third quarter increased over the second quarter, and the results show growth in all areas of the technology portfolio. Even UCaaS, for which 17% of partners reported a decrease in revenue, saw growth for 41% of partners.
Cybersecurity saw the largest percentage of tech advisors (54%) reporting an increase in booked revenue — 42% an increase of 10% or less, and 12% an increase of more than 10%. Next came UCaaS (41%) and mobility/wireless (40%).
Channel Futures added three tech categories to its questionnaire: managed IT services, SaaS and energy. Energy was by far the least commonly offered technology for partners, with 41% saying it isn't in their portfolio. Nevertheless, the number tells us that 59% of partners are selling energy services. Managed IT services saw solid growth, with 38% of tech advisors reporting a increase in booked revenue.
Cloud infrastructure was the most commonly offered technology. Only 11% of TAs said they don't sell cloud. Moreover, 30% of advisors said their cloud revenue grew year-over-year for the quarter.
Q. How did your booked revenue in Q3 2024 compare with Q3 2023 in the following areas?
Supplier-Related Challenges
In a tale as old as time, tech advisors pointed to concerns about their vendor partners. The two most cited challenges from TAs related to suppliers: supplier quality of service and managing vendor relationships. In the advisor model, the vendor manages and bills the end user, and subpar support can reflect poorly on the TA.
In addition, agents noted that customer inertia – in other words, clients' unwillingness or indecision to evaluate new technologies – was a top challenge. On the other hand, 25% of tech advisors cited customer retention and account management as top challenges.
Q. What were the top challenges your business faced in Q3 2024? (Select up to three)
Supplier quality of service | 31% |
Managing vendor relationships | 29% |
Customer inaction/ inertia | 27% |
Customer retention/ account management | 25% |
Recruiting and retaining talent | 22% |
Uncertainty about commissions | 16% |
Industry consolidation | 15% |
Onboarding new vendors | 15% |
Government regulations | 13% |
Adding in-house managed or professional services to my portfolio | 13% |
Insufficient access or use of data platforms and tools | 11% |
Pace of technological advancement | 9% |
Other | 9% |
About the Author
You May Also Like
Mar 24 - Mar 27, 2025
Mar 24 - Mar 27, 2025
The Channel Partners Conference & Expo, co-located with MSP Summit, is the gathering place for the technology services community. Agents, VARs, MSPs, integrators and service providers will converge to share ideas and drive discussion on the topics shaping our industry.
REGISTER NOW