Why VARs and MSPs Struggle to Close Large Revenue Opportunities in 2025
An Industry Analysis for Technology Resellers and Channel Managers
Value-Added Resellers (VARs) and Managed Service Providers (MSPs) face significant challenges when pursuing high-value enterprise deals in today's complex technology landscape. This analysis explores these obstacles and offers strategic insights for both resellers and channel managers.
Core Challenges for Technology Resellers
Extended Enterprise Sales Cycles
8-12 month sales cycles drain resources, create cash flow pressure, and delay market penetration. Smaller MSPs with limited capital often prioritize faster-closing deals over strategic enterprise opportunities, restricting long-term growth.
C-Suite Access Barriers
Tech sellers frequently get trapped in mid-management conversations, unable to reach executive decision-makers who control budgets and strategic initiatives. Without executive sponsorship, deals stall or get deprioritized, creating a cycle of "almost closed" opportunities.
Complex ROI Justification
Difficulty quantifying return on investment leads to deal hesitation and extended approval processes. Enterprise customers demand sophisticated business cases with industry-specific benchmarks that many resellers lack resources to develop.
Structural Impediments to Enterprise Success
Publisher Restrictions and Channel Conflict
Software manufacturers impose rigid "Rules of Engagement" that limit partner flexibility and prevent building strategic enterprise relationships:
Deal registration systems favoring larger partners
Direct sales teams competing against channel partners
Reduced margins on enterprise deals
Unpredictable partner program changes
These constraints create uncertainty where significant pre-sales investments may yield little return if manufacturers pursue deals directly.
Solution Integration and Operational Challenges
MSPs and VARs often struggle with:
Lack of industry-specific implementation frameworks
Insufficient specialized expertise for complex implementations
Inconsistent quality across multiple customer locations
Limited ability to scale for large deployment projects
These limitations become apparent when competing against global integrators with established methodologies and extensive resources.
The Expertise and Revenue Model Disconnect
Vertical Expertise Gaps
Insufficient domain knowledge prevents tech sellers from speaking the language of enterprise prospects and understanding their unique challenges.
Outdated Revenue Models
Inability to adapt to subscription-based and consumption pricing that enterprises increasingly prefer over traditional licensing.
Technical Resource Constraints
Limited access to specialized expertise for emerging technologies like AI, cloud infrastructure, and cybersecurity.
Misaligned Success Metrics
Focus on transaction volume rather than successful implementation and customer outcomes.
The Channel Manager's Perspective: Challenges in Partner Enablement
Channel managers at technology manufacturers face their own challenges when helping VAR and MSP partners succeed with enterprise opportunities:
Partner Selection and Investment Allocation
Channel managers must determine which partners warrant deeper investment of resources, training, and co-selling support. With limited budgets, identifying partners with true enterprise potential versus those better suited for mid-market remains a persistent challenge.
Internal Organizational Alignment
Channel managers often struggle to align direct sales teams with partner-led opportunities. Internal compensation structures, territory assignments, and shifting priorities frequently create situations where manufacturer representatives inadvertently undermine channel deals.
Enablement Program Effectiveness
Despite significant investments in partner enablement, measuring the actual impact of training programs, sales tools, and marketing resources remains difficult. This disconnect creates uncertainty about which investments truly drive enterprise success.
Partner Business Transformation
As manufacturers transition to cloud-based and subscription offerings, channel managers must guide partners through fundamental business model changes requiring new financial structures, compensation plans, and engagement models—changes many resellers resist or implement partially.
The Path Forward: Strategic Imperatives for 2025
For technology resellers to capture enterprise opportunities, they must develop capabilities in several critical areas:
Strategic Partnerships
Form alliances with complementary providers to offer comprehensive enterprise solutions
Vertical Specialization
Develop deep industry expertise in 1-2 target verticals rather than pursuing all sectors
Operational Excellence
Implement scalable delivery methodologies that maintain quality across large implementations
Executive Engagement
Develop C-level relationships through thought leadership and business outcome conversations
Channel Manager Action Plan
For channel managers seeking to help partners overcome enterprise selling challenges:
Segmentation & Focused Investment
Develop clear criteria for identifying partners with genuine enterprise potential and concentrate resources on those committed to upmarket strategies.
Co-Selling Framework
Establish transparent rules of engagement between direct teams and channel partners, including clear opportunity ownership guidelines and compensation neutrality.
Business Transformation Support
Provide partners with financial modeling tools, operational best practices, and change management resources to facilitate transition to subscription models.
Outcome-Based Measurement
Shift partner program metrics from transaction volume toward customer success indicators, implementation quality, and solution adoption rates.
Conclusion
The challenges facing technology resellers in pursuing enterprise opportunities are substantial but not insurmountable. By developing targeted strategies, both VARs/MSPs and channel managers can create a foundation for sustainable growth in the enterprise segment.
Success in 2025 will belong to technology providers who bridge the gap between technical capabilities and business outcomes, developing the expertise, operational maturity, and executive relationships necessary to thrive in complex enterprise environments.
Key statistics:
Average enterprise deal cycle: 9.2 months (Forrester)
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