The evolving channel from component supplier to strategic partner

The relationship between end users and the channel is undergoing a fundamental shift. Distributors, resellers and integrators who once competed primarily on price and availability are being asked to deliver something more substantial - strategic value. The Genetec State of Physical Security 2026 survey, drawing on 7,368 responses including significant input from channel partners and consultants, illuminates what customers now expect and how the channel is responding.

The clearest signal is that end users prize long-term alignment and vendor stability above almost everything else. When evaluating solutions, 73% of end users cited the long-term viability and stability of the manufacturer as a key factor. Product performance and price followed at 45% and 43% respectively. This represents a significant shift in purchasing criteria, and a significant opportunity for channel partners who can position themselves as trusted advisors rather than transactional suppliers.

What customers want from their partners

Survey findings reveal that customers expect channel partners to bring design and deployment expertise, deliver solutions that maximise value and reduce total cost of ownership. They want partners who understand their operational challenges, can navigate the complexity of modern security architectures and will support multi-year modernisation programmes. The days of simply fulfilling orders are fading.

Integration capability is paramount. Some 60% of respondents listed integration with new technology as the primary reason for replacing legacy platforms. Customers are seeking interconnected solutions that unlock capabilities such as AI-assisted investigations, remote diagnostics and automatic updates. Channel partners who can deliver unified systems, bringing together video, access control, intrusion detection and analytics are positioned to capture this demand.

The survey also highlights growing interest in managed services. Channel partners report strong demand for cloud-based offerings including GSaaS (guarding as a service), VSaaS (video surveillance as a service) and hybrid deployments that balance flexibility with control. For the channel, recurring revenue models offer predictability and deeper customer relationships but require different capabilities than traditional project-based work.

AI creates opportunity and challenge

AI is ranked alongside access control and video surveillance as a top project priority for 2026, a first in the survey's history. Channel partners report that customers are increasingly requesting AI-enabled products, predictive monitoring and automation tools. Some integrators have responded by creating dedicated AI teams to build capability and manage customer expectations.

The main challenge is that expectations often outpace reality, with survey respondents noting that many customers do not fully understand how AI can be applied in practice. Channel partners who can bridge this gap by helping customers identify where AI delivers genuine value, setting realistic implementation timelines and measuring outcomes honestly will differentiate themselves from competitors still selling features rather than solutions.

End users are pragmatic about AI adoption. They want systems that detect suspicious behaviour, help operators navigate alarms and investigations, reduce noise and focus attention on events that matter. Some 70% expressed concerns about implementation, particularly around data use and understanding how AI systems work. Channel partners should be prepared to address these concerns with transparency about data handling and clear explanations of how algorithms function.

Legacy replacement drives project pipelines

Channel partners identified several legacy systems being replaced by customers: ageing access control boards, outdated intrusion sensors being upgraded to intelligent network-based detectors, biometric and facial recognition systems requiring improved accuracy and integration capability, and network hardware being modernised to support hybrid cloud environments. Each replacement cycle represents an opportunity to deliver broader value.

The survey indicates that channel partners expect AI-powered video analytics, cloud-based services, integrated command-and-control solutions and full-scope security modernisation projects to drive business in 2026. Those prepared to deliver these capabilities, whether through internal development, manufacturer partnerships or specialist subcontractors will capture the strongest growth.

Navigating market headwinds

Budget optimism is cautious. While 58% of consultants expect customer budgets to remain steady or increase in 2026, channel partners identified several factors that could cause project delays: budget approval processes, certification and import requirements, conservative customer spending, economic pressures including inflation and tariffs, ongoing supply chain disruptions and shortages of skilled professionals.

Regional variations add complexity. Supply chain issues ranked as higher risk in the Middle East, Africa and Asia-Pacific regions. Political instability concerned channel partners in North America more than elsewhere. Smart channel businesses are building flexibility into their project planning and maintaining transparent communication with customers about potential delays.

The workforce imperative

Perhaps the most pressing challenge facing the channel is talent. A global shortage of skilled technical professionals is causing project delays and extending training cycles. Channel partners are responding with several strategies - investing in training, cross-skilling and upskilling programmes; adopting skills-first hiring that values technical proficiency and adaptability over traditional credentials; leveraging AI to optimise workflows and boost productivity and supporting employee wellbeing to improve retention.

Collaboration with manufacturers on training and certification is becoming essential. End users increasingly expect channel partners to demonstrate expertise, and manufacturer enablement programmes. Documentation, labs, and certifications all help build credible capabilities. Channel partners should hold manufacturers accountable for providing these resources as part of the partnership.

From transactions to transformation

The channel partners thriving in this environment are those who have embraced their evolving role. They understand that customers are buying outcomes, not products. They invest in consultative capabilities that help customers define requirements and build business cases. They develop expertise in emerging technologies while maintaining deep knowledge of established systems. They build relationships based on trust, transparency and shared success. The survey data confirms that this transformation is not optional, it is the new baseline for competing in physical security.