The technology services distribution (TSD) market reached $16.6 billion in gross billings in 2024, up 14.5 percent , driven by growing demand for cloud/colo, cybersecurity, and UC/CCaaS solutions.
Research from Omdia shows that the top six TSDs — Telarus, Intelisys, AVANT Communications, AppDirect, Sandler Partners, and BridgePointe — account for 72.3 percent of the market and grew 13.4 percent collectively.
Other notable TSD players include ACS Cloud, Clarus Communications, Global Telecom Solutions, Hyperion Partners, Jenne, Liquid Networx, MORUGA, P2 Telecom, TD SYNNEX, and XCV Partners.
While connectivity sales remain a core revenue stream, their growth is slower than emerging solutions, signaling a shift toward higher-margin technologies. To sustain growth, TSDs are increasingly optimizing partner mixes, expanding MSP and VAR partnerships, and enhancing enablement programs to boost average contract value (ACV) and retain tech advisors, Devan Adams, Principal Analyst, Channel, at Omdia, said.
Private equity and venture capital investments are reshaping strategies across the sector, prompting partner tiering, supplier consolidation, and adoption of AI-driven internal tools to improve execution. As the market matures, IT and telco suppliers, as well as channel partners, are advised to closely monitor these dynamics to capitalize on emerging opportunities.
Cloud, Cybersecurity, and AI-Driven UCaaS Fuel Growth in Technology Services Distribution Market
The TSD market is seeing a shift in growth dynamics as traditional connectivity and networking sales plateau due to saturation and pricing pressures. According to Omdia research, cloud/colo, cybersecurity, and AI-enhanced UC/CCaaS solutions are emerging as the fastest-growing segments, driven by workload migration, security demands, and regulatory compliance.
Capital influx from venture capital and private equity is reshaping the sector, prompting tighter partner tiering, supplier rationalization, and adoption of advanced enablement tools to improve execution and ROI. Optimizing partner mix is also critical: while tech advisors account for 86 percent of partners, expanding relationships with VARs (7 percent) and MSPs (4 percent) — which generate higher-value contracts — can increase client retention and wallet share.
A SWOT view of the TSD market highlights strong channel networks and broad supplier offerings as key strengths, while limitations include restricted access to hyperscaler cloud and AI services, slow-growth legacy offerings, and a North America-centric footprint. Opportunities lie in advanced communications, edge computing, cybersecurity, and digital distribution platforms, whereas threats include hyperscaler competition, evolving partner programs, and reliance on agent-heavy networks.
As the market matures, TSDs that adapt to higher-value services, innovative partner models, and emerging technologies are best positioned to capitalize on growth opportunities in the IT and telecom channels.
Top Technology Services Distributors Drive Growth Amid Cloud, AI, and UC/CCaaS Expansion
The global TSD market continued its strong trajectory in 2024, led by both established and emerging players expanding offerings in cloud, cybersecurity, and AI-driven communications solutions. According to Omdia, the top six TSDs — Telarus, Intelisys, AVANT Communications, AppDirect, Sandler Partners, and BridgePointe — accounted for the majority of market growth, with gross billings ranging from $755 million to $2.9 billion and year-on-year growth between 4.5 percent and 32 percent.
Telarus posted $2.9 billion, driven by its Telarus Hub platform and the AI Quick Solution Assessment (QSA) module for advisors, alongside a series of acquisitions including Americomm and Chorus Communications.
Intelisys generated $2.7 billion, integrating partner operations and launching the Channel Exchange marketplace to streamline SaaS sales.
AVANT Communications, with $2.1 billion in billings, focused on vendor enablement and AI-powered partner tools, supported by new investments from Court Square and Pamlico Capital.
AppDirect grew 12 percent to $2 billion, expanding cloud and AI marketplaces, securing AWS Advanced Tier status, and completing multiple acquisitions such as Tackle.io and NXTSYS. Sandler Partners, with $1.4 billion, leveraged UC/CCaaS expansions and connectivity tools while partnering with Pax8 to broaden cybersecurity offerings.
BridgePointe Technologies led in growth rate at 32 percent, totaling $755 million, backed by strategic partnerships, capital investments from Charlesbank, and M&A activity including PPT Solutions and Parallel Technologies.
Other notable moves in the sector include ACS Cloud Partners launching ACS Automotive and winning ChannelVision awards, Global Telecom Solutions (GTS) acquiring AMT Telecom Group, and P2 Telecom partnering with Coro Security for billing services. Liquid Networx was named Fortinet’s Unified SASE Partner of the Year, while Hyperion Partners was acquired by MAI Capital Management. Mergers and strategic launches also marked XCV Partners, Clarus Communications, Jenne, Inc., MORUGA, TD SYNNEX, and Innovative Business Solutions, demonstrating ongoing consolidation and innovation across the market.
RAJANI BABURAJAN
