Channel partner investment in cloud hyperscalers: a strategic pivot point

Canalys’ (now part of Omdia) data from a recent poll reveals that of those partners whose clients are currently using hyperscaler vendor services, 60% of partners’ clients are currently using just one or two hyperscaler vendors on average. This concentration reflects a maturing market where enterprises prioritize operational simplicity, cost efficiency and deep integration with preferred platforms – typically AWS, Microsoft Azure or Google Cloud.

However, the latest Canalys (now part of Omdia) estimates also show continued investment in alternatives, particularly Alibaba, Huawei, Oracle, Salesforce and Tencent.

As cloud computing continues to dominate IT infrastructure strategies, channel partners are increasingly aligning their investments with the evolving demands of enterprise clients. According to Canalys (now part of Omdia), global IT spending is projected to grow by 7% in 2025, reaching US$5.3 trillion, with partner-delivered IT accounting for just over 70% of that total.

This surge underscores the critical role of channel partners in enabling digital transformation, particularly through cloud services. However, across 2024, the size of the channel partner-delivered market in cloud infrastructure services globally accounted for just 34.7% of the total market.

The reliance on a narrow set of hyperscalers can limit innovation, reduce negotiating leverage and expose clients to vendor lock-in. For partners, it restricts the breadth of solutions they can offer and narrows the scope of their value proposition.

However, this challenge is also a compelling opportunity.

The case for broadening cloud vendor engagement

Expanding the portfolio of hyperscaler relationships can unlock significant value for both partners and their clients. By diversifying across multiple cloud platforms, partners can:

• Mitigate risk: reducing dependency on a single vendor helps clients avoid service disruptions, pricing volatility and compliance risks tied to one ecosystem.
• Enhance flexibility: different hyperscalers excel in different areas – Google Cloud in AI and analytics, Azure in hybrid cloud and enterprise integration, AWS in scalability and breadth of services. A multi-cloud approach allows partners to tailor solutions more precisely to client needs.
• Drive innovation: exposure to varied cloud-native tools and services fosters innovation and experimentation, especially in areas like AI, machine learning, and edge computing.
• Increase revenue streams: supporting multiple cloud platforms enables partners to tap into new markets, industries and use cases, expanding their total addressable market.

Strategic investment areas

To capitalize on this opportunity, channel partners must invest strategically in several key areas:

• Certifications and skills development: building expertise across multiple hyperscaler platforms is essential. This includes technical certifications, sales enablement and solution architecture capabilities.
• Vendor relationship management: establishing strong alliances with multiple cloud providers can unlock co-selling opportunities, marketing development funds (MDF) and early access to new technologies.
• Cloud management platforms (CMPs): investing in tools that provide unified visibility, governance and cost optimization across multi-cloud environments that can differentiate partners in a crowded market.
• Vertical specialization: tailoring multi-cloud solutions to specific industries, such as healthcare, finance or manufacturing, can enhance relevance and drive deeper client engagement.

The road ahead

The Canalys Channels Ecosystem Landscape 2025 emphasizes that the channel is entering a new era of AI-driven transformation, with cloud infrastructure at its core. As hyperscalers moderate their own infrastructure investments following a surge in 2024, the onus will increasingly fall on partners to deliver value-added services, integration and innovation.

For partners, the message is clear – staying competitive in the cloud era requires more than loyalty to a single vendor. It demands agility, breadth and a commitment to delivering the best-fit solutions for clients, wherever those solutions reside. By broadening their hyperscaler engagement, channel partners can not only future-proof their businesses but also become indispensable advisors in their clients’ digital journeys.