Techaisle Blog

For years, the Market Development Fund (MDF) has been the dirty little secret of the channel. A clunky, bureaucratic system of financial exchange where vendors offer funds for "marketing activities" that often have questionable ROI, and partners endure the administrative headache to claim what they see as their rightful due. It has been a cornerstone of vendor-partner programs for a generation. And according to Techaisle's definitive new research surveying 4,115 channel partners, it is a cornerstone that is crumbling into dust.

Techaisle data forecasts a stark reality: MDFs will see a continued decline, shaking up the entire vendor incentives playbook. This is not a cyclical dip; it is a structural collapse. Vendors who are still building their channel engagement strategy around traditional MDF are not just wasting money—they are broadcasting a fundamental misunderstanding of what their partners actually value today. They are investing in a dead paradigm.

The death of the MDF is not about partners wanting less support. It is about them demanding smarter support. The nature of value, growth, and marketing in the channel has irrevocably changed, and the antiquated MDF model is simply not fit for the modern purpose.

Following the Money: What Partners Actually Value

The cybersecurity perimeter is not just porous; it is an illusion. And the endpoint is no longer the last line of defense; it's the primary battleground. This is the stark reality underscored by the latest HP Threat Insights Report. For years, the industry has been locked in an arms race centered on novelty, but our analysis of HP's data, combined with exclusive follow-up Q&A, reveals a more insidious and challenging truth. The most effective adversaries are no longer focused on reinventing the wheel; they are perfecting it. They are refining age-old techniques with such precision that they systematically dismantle traditional, detection-based security postures.

This evolution marks a critical inflection point for businesses of all sizes. The core tenets of cybersecurity—user training, anomaly detection, and signature-based scanning—are being pushed to their limits. This is not an incremental change, but a paradigm shift that demands a strategic rethinking of endpoint security, moving from reactive detection to proactive isolation.

The Polishing of Deception: The End of the "Suspicious Link" Era

For over a decade, the cornerstone of user-facing security has been awareness training to identify the proverbial "suspicious link." HP's research confirms this era is drawing to a close as attackers deploy "ultra-realistic" and "highly polished" social engineering lures. These include fake PDF invoice readers that perfectly mimic legitimate applications or malicious cookie banners on spoofed travel websites that exploit the user's conditioned habit of "clicking through" to access content.

For decades, the technology channel has operated on a simple, foundational premise: partnership with the vendor. The model was clear - partners were an extension of the vendor's sales force, armed with vendor certifications, aligned with vendor GTM strategies, and loyal to the brand. Their success was inextricably linked to the vendor's success. Techaisle’s latest channel research, a comprehensive study of 4,115 partners, signals that this era is not just ending; it has already been rendered obsolete by a force that vendors have ironically championed: Artificial Intelligence.

A seismic shift is underway. Partners are quietly - and not so quietly - pivoting their allegiance away from their vendor suppliers and toward the only constituency that matters in the long run: the end customer. This is not about disloyalty. It is about survival and relevance in an AI-driven world. Techaisle research identifies a key trend that should serve as a five-alarm fire for every channel chief: the channel will pivot from vendor dependency to buyer value. This is not a future prediction; it is a present-day reality unfolding in partner business models, technology choices, and investment priorities.

The Data Does not Lie: The Anatomy of a Power Shift

The traditional vendor-partner dynamic was built on a dependency on product. Vendors created technology, and partners resold it, adding a layer of service. This created a natural fealty. But the very nature of partner revenue is changing. Techaisle data indicates that partner revenue is now predominantly driven by services, with 53% coming from services versus 47% from product resale. This is a critical tipping point. When a partner's profitability is driven more by their own expertise and intellectual property (IP) than by the margin on a vendor's product, their strategic calculus fundamentally changes.

This is where AI becomes the great accelerator of independence.

The global conversation around Artificial Intelligence is often dominated by the sheer horsepower of GPUs and the expansive promise of public cloud. While the market remains captivated by the meteoric rise of companies selling AI infrastructure, a quieter, more intricate strategy is unfolding - one that intertwines silicon, hardware, software, and a collaborative go-to-market (GTM) engine to tackle the foundational bottleneck in AI adoption: enterprise-grade infrastructure.

It is clear to me that IBM is architecting a sophisticated partnership playbook that moves far beyond traditional alliances. This is not just about co-marketing or creating reference architectures. On the contrary, it is a deeply integrated, three-way GTM model designed to deliver holistic AI solutions. This strategy uniquely positions IBM to address complex customer needs in a way that pure-play cloud providers or hardware-only vendors cannot. It is a story that has been flying under the radar, but one that the entire technology ecosystem needs to understand.

Beyond Reference Architectures: The 360-Degree Partnership Philosophy

At the heart of IBM's approach is the recognition that its strategic imperatives of AI and hybrid cloud are impossible to achieve without a robust ecosystem of partners. This strategy begins with a core group of strategic technology partners, with collaborations centered on technology leaders like  AMD, Broadcom, Dell Technologies, Intel, Lenovo, NetApp, and NVIDIA. The logic is simple yet profound: every AI solution is ultimately deployed on a server, powered by GPUs, and dependent on high-performance infrastructure to function at scale.

To capitalize on this, IBM is pursuing what can be described as a 360-degree partnership model that encompasses four key pillars:

1. Selling To: Ensuring partners are confident in IBM technology by using it themselves.
2. Selling Through: Enabling partners to integrate IBM technology into the solutions they take to market.
3. Selling With: Establishing joint account planning and a co-selling motion where sales teams from both companies approach clients in unison.
4. Building Together: Moving beyond basic reference architectures to co-create complete, market-ready solutions and blueprints.

The power of this framework lies in its transition from theoretical blueprints to tangible, integrated solutions. A historical parallel can be drawn to IBM's partnership with VMware, which transformed a nascent licensing deal into a multi-billion-dollar business by building a complete solution on the IBM public cloud. This history provides the blueprint for the deeper, more complex alliances being forged today.

The Game-Changer: A Three-Way GTM Model in Action