By Larry Walsh
Channel partners are, by definition, on the front lines of customer engagement and experience. Through their account relationships, vendors can gain insight into how customers view market conditions and how they’re adjusting technology investment plans and buying preferences.
In the most recent Channelnomics Partner Confidence Index (PCI) survey, we asked partners what changes they’re seeing in customer buying behavior. Over the past year, partners report notable shifts in purchasing intentions and priorities. Here are eight trends they’re observing.
1. Reduced Spending Due to M&A Activity
Nearly one in four solution providers reports that customers are cutting IT spending in anticipation of mergers and acquisitions (M&A). While only about one-quarter of partners are seeing this shift, it represents a 52% increase from last year.
Market analysts expect M&A activity to accelerate. Companies preparing for an exit may curb spending to strengthen margins and improve valuations. At the same time, acquiring firms often reduce IT outlays to consolidate suppliers and eliminate redundancies.
The upward trend suggests that partners increasingly view M&A-driven spending cuts as a meaningful headwind this year.
2. Tapping Into the Power of Ecosystems
“Ecosystem” is a term that means different things to different stakeholders. For customers, it represents a coalition of suppliers delivering integrated solutions greater than the sum of their parts. One in five partners reports that more customers are seeking solutions through ecosystem engagements — a 38% increase year over year. While the overall share remains modest, the growth underscores a broader recognition that no single company can meet all customer requirements.
3. More Purchasing Through Marketplaces
The appeal of marketplaces and hyperscalers as purchasing channels continues to expand. In this year’s survey, 36% of partners said customers are shifting more purchasing to hyperscalers and other self-service platforms — a 35% year-over-year increase.
Customers gain advantages through hyperscalers, including the ability to apply purchases against spending commitments. Marketplaces also enable buyers to bypass traditional sales processes. Channelnomics research indicates that marketplaces and hyperscalers could become the preferred point of sale for end customers by 2030.
4. Spending Less on Software Subscriptions
The technology industry now operates predominantly on subscription and contractual sales models, with customers committing to monthly or annual fees. The percentage of partners seeing customers reduce subscription spending increased 29% this year.
While customers aren’t necessarily cutting overall technology budgets, they’re reducing the number of applications purchased via subscription. SaaS sprawl has become a significant issue for enterprises and SMBs grappling with escalating technology costs. By eliminating redundant or nonessential applications, organizations are controlling expenses.
The impact on partners is mixed. In some cases, eliminating one SaaS solution results in increased spending on another platform, yet only 2% of partners report customers increasing SaaS spending — down 26% since the beginning of 2025.
5. Less Priority on Sustainability
Over the past five years, the technology industry has emphasized sustainability — reduced packaging, recycled materials, component reclamation, and lower carbon footprints in manufacturing and shipping. Customers have often driven this demand.
Today, 17% of partners report that customers prioritize sustainability as a purchasing consideration — a year-over-year decline of 18%. Much of the decrease is in North America, where regulatory priorities are shifting. In Europe, where sustainability mandates remain firmly in place, interest continues to run high.
6. Falling Demand for Transparent, Up-Front Pricing
Technology costs are rising. Artificial intelligence investments, chip shortages, data center expansion, and inflation are driving higher prices across hardware and services. Customers increasingly encounter revised quotes and unexpected increases.
Despite this environment, only one in five partners reports that customers are seeking transparent, up-front pricing — a 26% decline. Availability and access to critical technologies often outweigh price certainty, even as buyers seek greater predictability in spending.
7. Limited Cloud Repatriation
Two years ago, industry narratives suggested that high cloud costs and AI infrastructure demands would drive widespread workload repatriation from public clouds to private data centers. Some studies claimed that 72% to 84% of enterprises were moving workloads back on-premises.
In the 2026 survey, only 7% of partners reported that customers are shifting away from public clouds — a 35% year-over-year decline. This doesn’t invalidate earlier repatriation efforts, but it suggests that economics and capacity constraints in private and co-location facilities are limiting large-scale reversals.
8. Big Change in “No Change”
The pace of technological evolution remains rapid, and customers are actively adjusting their strategies. Only 6% of partners anticipate no change in their customers’ buying behavior — a 42% decline.
The signal is clear: Customers continue to invest, refine sourcing strategies, and seek solutions that deliver measurable business value.
For more insights into partner perceptions and market trends, see the Channelnomics Partner Confidence Index reports for North America and Europe. They’re available to members of the Channelnomics IQ (CiQ) program and through limited distribution upon request.
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Larry Walsh is the CEO, chief analyst, and founder of Channelnomics. He’s an expert on the development and execution of channel programs, disruptive sales models, and growth strategies for companies worldwide.