Deep Dive: The 2025 CRN Australia Scorecard
Partners, vendors and distributors grade this year based on how the channel has fared.
As 2025 winds up, this is the time of the year where we begin looking back on the year that was, and depending on who you are in the channel, it was either a good year or a bad year.
Speaking to vendors and distributors, they seem more glass half full, as AI brought new opportunities and revenue streams for them respectively.
For partners, it was a mixed bag of feelings with 2025, some found new opportunities and transformed their business, and others are feeling the pinch with the current economic conditions.
For the last CRN Deep Dive of the year, we have asked partners, distributors and vendors to grade the year and give us their reason behind that particular grade.
Some have given 2025 an A, with AI and partner engagement being the driving force behind the optimistic grade.
Whereas some have gone in the complete opposite direction, failing 2025 as the industry is plagued with paralysis through bad software, a drop in profitability and sub-par strategies.
But there is one thing all the major players in the Australian IT channel can agree on, and that is AI isn’t going anywhere anytime soon.
Continue reading to see how several partners, vendors and distributors have graded 2025.
Ben Johnson, general manager – marketing and strategy, Dicker Data
Grade: A
Why: We've seen the momentum around AI translate into real, closed opportunities this year, and we see that momentum continuing to accelerate into 2026. From the role we played in supporting the establishment of Australia's first sovereign AI factory with ResetData, to leading the adoption of Microsoft Copilot across multiple quarters, AI investment and AI uptake in Australia became a reality this year.
There's a group of partners who are leading the charge, and as we move into 2026 our role will be to further democratise access to all levels of AI solutions for our Australian partners. We're doing this through our AI Accelerate practice with 365 Mesh, as well as the investments we've made into AI Pods with both Cisco and Dell Technologies.
Plus, our AI Accelerate initiative will hit the road in 2026, bringing AI enablement, workshops and training to partners in their home states.
It hasn't been easy for partners this year, but for those who have doubled down on their strategic focus and who have embraced new technologies, built new processes and offerings, particularly around AI, they've done well. There is loads of opportunity out there for partners who can bring structure and focus to their end-customers, and for those who are clearly defining and showcasing the ROI they're delivering.
However, the market has been tough, particularly in the SMB and lower mid-market. We've provided an A rating here because of the resiliency our channel partners continued to show. Their innovation and ability to execute against major initiatives, such as Windows 10 end of support, cybersecurity, AI, and more, is testament to the role they've continued to play in advancing Australian businesses and the broader Australian economy.
Danny Jenkins, CEO, Threatlocker
Grade: A
Why: Across the channel, the feedback from our partners has been largely positive. Many MSPs are seeing stronger demand for cybersecurity services as customers become more aware of the risks they face. AI has been a mixed development. It is delivering efficiencies for some partners, but it has also accelerated the pace and sophistication of cyberattacks. That reality has driven more organisations to prioritise serious security investment while they adopt AI.
Overall, it has been a strong year for partners, and an important one for raising the bar on cybersecurity across the Australian market.
Jacob Pereira, Head of APAC partners, Zoom
Grade: A-B
Why: The partner engagement was definitely healthier. I think where we could have done a better job is to have more avenues of partner types supported, which I think is one key learning we're taking into next year, like marketplace and MSP support. We're also looking at how we support BPOs in the future.
Lisa Fortey, general manager, Logicalis Australia
Grade: B+
Why: I feel like, from a customer perspective, there's a little bit more confidence in the market. We're seeing governments still spending, there's an election here in Victoria next year, so we expect to see some further improvements in that area.
But, confidence has improved despite all of the overseas influences coming into play. We are still seeing some areas of some industries struggling a little bit. But for us, if I look internally, it was a year of kind of measurable improvement.
We've made some big changes this year and change is both good, but it can also be a bit disruptive. The year of change for us is all about being set up for a really strong FY27 next year, which for us, starts on the first of March. This has been just a year of change, and that's been hard, but equally, I've seen some huge improvements.
In terms of how we communicate, not just externally, but internally to our teams and how we've been able to deliver both to our own individual teams and then to our customers as well. But you know, there's still more to do.
Lee Gurd, general manager, Computer Alliance
Grade: B
Why: We have had a very good year with revenues up although some continued pressure on GP. We are continuing to grow our service attach which is strengthening our place in the Queensland market and leading to a deepening of our customer relationships which offers a strong platform for future growth.
Alex Coates, CEO, Interactive
Grade: B
Why: 2025 has been a transformative year for the channel. According to industry analysts, APAC channel growth outpaced global averages, powered by AI adoption, digitisation at scale, hybrid becoming the new norm, and sovereignty requirements. The pace of change has been relentless, and partners and customers alike have had to adapt faster than ever before.
I’m energised to see the level of collaboration this year - it’s refreshing, and it signals a real shift in mindset. For us, the launch of our Unite28 strategy was a pivotal moment to show why partnerships matter more than ever. In a fragmented market, collaboration, even with competitors, creates resilience and accelerates innovation.
Customers expect integrated solutions - they want outcomes. When we come together, we can solve their toughest challenges faster and better than any of us could on our own.
I think this year laid the foundation for even deeper ecosystem collaboration in 2026.
It’s been a strong year for some partners, but let’s be honest - it’s also been a tough one for many. The reality is that those who did well doubled down on what really matters: putting the customer at the centre. They focused on what customers truly need, what’s moving their industry, and what success looks like for them.
To preserve margins, partners are having to work hard on adopting AI, driving automation, productising their offerings, and building repeatable models, because that’s what creates scale and sustainability.
For us, the launch of Unite28 was about making collaboration real. We’ve moved beyond transactional relationships to co-create with partners, because when we work together, we’re bigger than the sum of our parts. All boats rise when we focus on the customer outcome.
The partners who lean into collaboration and co-creation, and who stay laser-focused on customer-centricity, are the ones creating the most value.
Jay Snyder, SVP partner and alliances, Dynatrace
Grade: B
Why: I honestly think it's been an exceptional year. I think agentic is the next wave of cloud that created so much momentum years ago when cloud kicked off, and people weren't really sure what it was going to be and then all of a sudden it became a tidal wave, and it's never slowing down.
I think because that happened and you're seeing a similar pattern emerge with agentic, people learnt their lesson last time, and they don't want to miss the wave. People are really excited about it, they're learning about it, they're understanding the impacts from a data and AI perspective to their business, to their customers, and they're looking to partner with firms that have capabilities that they can bring to market faster than they ever have, which is, which is great for us and it's good for the partners. It's a new set of opportunities to show their skills.
Through what we've done here. I think we've done some things well, but we still have much more work to go do to make the partners as impactful as they need to be. But we're doing some things well, co-innovation is getting there, co-marketing is getting there, co-go-to market has got a little bit of work to do.
Hope McGarry, executive managing director, Ingram Micro Australia
Grade: B
Why: It’s been a tough year that has seen characteristic resilience by the channel to navigate headwinds including cost pressures, skills shortages, and complexity. It's been a privilege to serve them and from our vantage point, we’ve seen strong hardware growth, especially in end-user compute, and partners investing in cloud and automation to maintain momentum. However, the skills shortage is biting hard, and this is where partners have leaned on our teams to adapt without adding headcount.
It’s been a challenging year for profitability and operational efficiency for many in the channel. Margins remain tight and profitability remained a top concern in 2025. Partners who embraced managed services, cloud subscriptions, and consulting fared well, creating recurring revenue and deeper customer relationships.
AI has emerged as a powerful enabler and a huge opportunity for partners, and we are working closely to make it practical and profitable for them.
Navneesh Garg, CEO, Adactin
Grade: B
Why: This score reflects strong buoyancy in the enterprise sector (BFSI, Healthcare, Energy) and federal government driven by modernisation, security uplift, and regulatory changes. However, performance was slowed by state government caution, which prioritised consolidation and internal restructuring, leading to project delays.
Overall, the significant positive disruption from technology and innovation with AI has been the major success factor. CIOs are re-engaging innovative vendors to focus intensely on productivity improvement and scaling IT operations, which has substantially increased our pipeline. We are highly optimistic that these AI-led initiatives will translate into constructive work and greater success this financial year.
David Dekker, chief operating officer, Atturra
Grade: B-
Why: It hasn’t exactly been a slam dunk in 2025 as the market for the technologies we support has been more reluctant to invest in enterprise-wide compared to recent years. At the same time, there’s been a lot of talk around AI and this has created a certain measure of hype. It feels like a time when the term “digital transformation” was coined several years ago and every company has used it to death for years.
AI is a similarly broad term. I do believe AI provides many opportunities for companies like Atturra. For those who want to build their own AI models, they need a clear data strategy and that plays to our strength. For those who want to use a vendor’s AI capability, for example as part of their ERP system, we’re perfectly placed in 2026 to advise them given our strong industry and technology experience.
Vito Rinaldi, managing director, Blue Crystal Solutions
Grade: C-D
Why: 2025 has been a challenging year for partners in the channel. A few forces have converged to create headwinds.
Vendors bringing more opportunities in-house: This has squeezed the traditional channel model, reducing the volume of partner-led opportunities and limiting revenue accessible to services-focused providers like us.
Heightened cyber security caution: Elevated cyber-security threats have made organisations more risk-averse. Many customers are choosing to “stick with the devil they know,” even when their incumbent supplier is underperforming. The threshold for switching partners has become significantly higher, leading to longer sales cycles and fewer competitive displacement wins.
AI interest vs actual monetisation: AI has been a bright spot in terms of engagement, with strong curiosity and a growing willingness to experiment. However, monetisation remains modest.
Customers are still in early testing phases, and while we’ve secured several AI clients, engagements are small to medium, fragmented, and exploratory rather than transformative. The market is enthusiastic but not yet commercially mature. We are getting promises and giving a lot of advice.
Overall, 2025 has been a year where partners have needed to work harder for smaller wins, navigate increased vendor/channel insourcing, and adjust to customers prioritising security stability over innovation. That’s why it’s a C to D for the channel this year.
James Davis, chief strategy officer, The TSP Advisory
Grade: F
Why: The majority of the industry isn't looking forward, they are paralysed, they are looking backwards, or they are driving agendas based on fear, uncertainty and doubt, and flogging licenses to solution that don't meet their promise.
The partners are seeing continued decreases in profitability the industry average is 6 percent EBITDA and about 25 percent of the industry is operating at break even or a loss, that doesn't make for great reading.
But the scary thing for me is most partners don't have a plan to get out of that position, they are looking for the industry to tell them what to do, but the industry thought leadership has generally been overly simplistic, treating new things such as "AI" as a bolt on to existing models without understanding and helping the partners understand the transformation they need to go through to meet the needs of their modern clients.
I could go on, but there is no silver bullet, the changes aren't a simple bolt on, they are massive transformation. And transformation takes years to achieve, but partners have been standing still.
There is so much opportunity which I would actually grade as an A, I have never seen so much opportunity in the industry but it isn't a product driven future it is an advisory led future with a portfolio of solutions that solve real client challenges and unlock opportunities for the end clients. We as an industry need to stop making it about ourselves, we need to look at everything through our client perspective.
Maybe, just maybe, we are feeling enough pain that we may change our approach into 2026, but sadly I feel 2026 is going to be a bad year for the majority partners. We are going to see further reductions in profitability, increased client churn, deceased spending as more clients look to exit. If you haven't been working towards something and waiting for the silver bullets you are going to be in big trouble.
But those partners that have a vision, strategy and plan and that are transforming will start to take more and more advantage of the limitless opportunities available to them.
This is what I am focusing on into the future and not looking backwards, and the more we come together, the more we focus on the end clients and the more we get pragmatic we as an industry we are going to start seeing A grades, seeing us all succeed together, and all be better off.
Some responses have been edited and condensed for clarity.