State of the Industry Oli Venn, SE Manager for Northern Europe at WatchGuard


Technologies, believes AI-driven threats, regulatory pressures and the decline of legacy tools will reshape the MSSP industry. He notes that crypto ransomware is giving way to pure data extortion, requiring stronger data governance and incident response. Te EU Cyber Resilience Act will force vendors and partners to embed secure by design principles, creating sustained demand for compliance as a service. Venn also expects growing demand for managed AI-based


monitoring of soſtware supply chains as open source ecosystems adopt automated defences. He predicts that 2026 will see the first fully autonomous AI-driven breach, making AI-enabled detection and remediation essential. Human-only operations will not be able to match the speed of AI-powered attacks. He also highlights the fall of traditional VPNs and the rise of Zero


Trust Network Architecture (ZTNA), which gives MSPs a scalable, high- margin security service to bundle with endpoint and SOC offerings. For Venn, the state of the channel in 2026 will be defined by how quickly partners embrace AI-enabled SOC operations, secure by design compliance, supply chain assurance and ZTNA-led access. Tose who operationalise these capabilities “will not only protect customers more effectively but also unlock predictable recurring revenue and deeper long-term partnerships.”


to customer strategy. Partners are no longer simply providers of technology; they are advisors, interpreters and risk managers. Customers want clarity, simplicity and outcomes, not just products. Tis shiſt is visible in every corner of the industry. Whether it’s


BT Wholesale describing connectivity as an experience, Commvault emphasising end-to-end cyber resilience, or Westcon Comstor highlighting data-driven insight, customers expect partners to take responsibility for the full lifecycle of technology. Te rise of managed services is accelerating this trend. As Farrelly


notes, MSPs are becoming the primary engine of growth in cyber resilience. Storrar sees MSPs moving away from hyperscalers toward hybrid models that offer more control and resilience. Venn sees MSSPs taking on AI-enabled detection and remediation, and Barron considers customer service to be a defining differentiator. Te channel is not just adapting to change — it is becoming the


mechanism through which customers navigate it. Despite the rapid evolution of technology, many leaders emphasise


that the human element remains central. Watts reminds the industry that “people and personal customer service are what matters. Our business is much more than a platform. People are the heart of what we do, and that won’t change.” Tis emphasis on human connection is not nostalgic; it is


practical. As AI, automation and digital ecosystems expand, the differentiator becomes the ability to interpret, guide and reassure. Technology may deliver capability, but people deliver confidence.


A channel defined by adaptability If there is a single thread running through every contribution to this article, it is adaptability. Te channel has always been resilient, but the demands of 2026 require a deeper form of flexibility, one that blends technical expertise with strategic insight, operational discipline and emotional intelligence. Te industry is navigating AI acceleration without AI overreach,


Promise, pressure and the need for human judgment Love it or hate it, there’s no getting away from AI – it remains the defining force shaping the industry, but the tone around it has matured. Te excitement is still there, but it is tempered by a more realistic understanding of what AI can and cannot do. Laura Wilkinson, Senior Director of Regional Marketing at Exclaimer, warns that the channel risks over-automating the customer journey. “Issues will arise if the customer journey is saturated with unnecessary AI. Channel businesses are already learning that ‘more automation’ is not the same as ‘better customer experience’.” Wilkinson notes that many teams lack the skills to evaluate AI’s


real impact. “Te biggest concern at the moment is teams lacking the relevant skills, knowledge, and experience to ask: what impact will this really have on the customer or partner?” Exclaimer’s own experiments with AI-led outreach show that AI can be effective, but only when guided by human judgment. For Wilkinson, the real opportunity lies in the selective, thoughtful


use of AI to deepen personalisation and trust. “Vendors and partners that help customers decide where AI belongs – and where it does not – will thrive.” Her message echoes a broader industry sentiment: AI is powerful, but it must be applied with intention, not enthusiasm alone. Across all these themes — security, connectivity, AI, data sovereignty — one pattern stands out: the channel is becoming more central


18 | January/February 2026


supply chain pressure without panic, connectivity transformation without fragmentation, security threats without fatigue, data sovereignty without paralysis, customer expectations without over- automation, and consolidation without losing identity. Tese are not small challenges. But the channel’s strength lies in its ability to evolve in response to them. Kilpatrick’s metaphor of the tunnel captures the mood well.


Tere is light ahead, but the industry is still working through the complexity that surrounds it. Te optimism is cautious, but it is real. As 2026 unfolds, the channel is positioned to play a more


influential role than ever. Te forces shaping the market are converging, and customers are looking for partners who can help them navigate this convergence with clarity and confidence. Te leaders quoted throughout this piece share a common belief:


the industry is moving in the right direction, even if the path is not always straightforward. Tere is growth ahead, but it will be earned through trust, collaboration and thoughtful application of technology. Te channel’s task now is to continue that movement with purpose, integrity and a commitment to delivering real value. 2026 will not be defined by speed alone. It will be determined by


the quality of decisions, the strength of partnerships and the ability to balance development with responsibility. Te channel has shown it is ready for that challenge — and prepared to lead.


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