2021 Channel Tech M&A, Capital Investment Reflect Partner Program Complexity, Their Future Value Too

With still one calendar page to turn, there’s plenty of time for news to break about another merger or acquisition or capital investment in a channel program technology provider or marketing solution vendor. But if a bow was tied on all activity now, 2021 would likely stand out as a year of outstanding investment in partner program supporting solutions.

Larry Walsh, CEO and Chief Analyst at Channelnomics, a business strategy and research firm, sees the M&A activity as a way for the providers of management and automation tools to facilitate simpler means for vendors to administer their channels and interact with partners. The deals reflect “the evolution of channel management from an analog to a digital state, especially as channels become more sophisticated and data-driven. The need for better and more complete automation tools will drive the providers of these applications to either develop or acquire the resources that will enable them to provide their customers with one-stop shops for their channel management needs,” said Walsh.

“We are in the midst of a channel automation and support consolidation wave,” he continued. “The landscape is replete with well-rounded providers of channel applications and support services. Rolling up these companies into consolidated providers will clean up the landscape, simplify purchasing for the customer, and create greater value for the stakeholders of these respective businesses.”

Still, Walsh cautions that not all M&A activity is good. “The concept of a ‘channel automation stack’ is flawed on its face, given that many of the applications and resources are not equal in their application, applicability, interoperability, or use cases. Chances are we’ll see some acquisitions and consolidation that will not accrete the promised value.”

by Terry Moffatt

Read the entire article, 2021 Channel Tech M&A, Capital Investment Reflect Partner Program Complexity, Their Future Value Too, at channelmarketerreport.com.