The Asia-Pacific (APAC) technology channel is undergoing a structural shift, moving at “two speeds” driven by rapid acceleration in some areas and significant rationalization in others, according to Sheena Wee, Principal Analyst at Omdia.
Speaking at the Canalys Forums APAC 2025 in Vietnam, Sheena Wee highlighted that the divide between these two speeds is widening every quarter, reshaping partner strategies and vendor priorities.
APAC Channel Transformation Driven by Vendor Programs
Sheena Wee noted that changes in vendor programs, go-to-market strategies, and transactional incentives are simultaneously fueling growth and triggering consolidation. While some partners are scaling rapidly by aligning with high-growth technologies and new vendor models, others are slowing down due to tighter margins, reduced incentives, and rising operational pressures.
Currency volatility remains a major concern for channel partners across APAC, with fluctuations affecting pricing, profitability, and long-term planning. Wee emphasized that technology vendors must clearly define the business value they bring to partners during this period of uncertainty.
Channel Partners Shift Toward AI-Driven Business Models
AI readiness and experimentation are emerging as critical differentiators for partners navigating this transition. According to Omdia insights shared at the forum:
Forty nine percent of channel partners are developing AI use cases and customer solutions
Partners are building AI skills and investing in internal AI transformation
Many are creating virtual demo and PCO lab environments to accelerate customer engagements
Several vendors are pursuing specialized mergers and acquisitions to strengthen AI capabilities
The ability to respond quickly to AI opportunities is becoming essential, with partners moving from initial experimentation to structured solution-building.
APAC-to-APAC Service Delivery to Triple by 2028
Cross-border IT service delivery inside the APAC region is expected to grow sharply. By 2028, the number of APAC partners providing cross-border IT services within the region will triple. This trend is driven by:
The rise of regional delivery hubs
The growing need for consistent service quality across multiple APAC markets
Demand from multinational and regional enterprises for integrated capabilities
Wee said that vision, specialization, collaboration, and location will define the winners as partners race toward future-ready service models.
AI Adoption Accelerates as Hyperscale Investment Surges
In his keynote, Steve Brazier, Informa Fellow and Co-founder of Canapii, highlighted the unprecedented speed at which AI is being adopted globally. He noted that AI is the fastest technology ever adopted, with 4-5 percent of users converting into paying customers—far higher than early adoption rates for previous digital technologies.
Consumers are increasingly willing to pay for premium AI services, driven by value-added features and rapid innovation cycles. Brazier shared an AI growth chart highlighting the rapid expansion of major AI companies including OpenAI, Gemini, Microsoft, Perplexity, Deepseek, and Anthropic.
Hyperscale Capex Reaches $616 Billion in 2025
Hyperscale investment continues to accelerate to support the AI boom. In 2025, hyperscalers committed a record $616 billion in capital expenditure. AWS, Google, Meta, and Microsoft accounted for $361 billion of this total, reflecting the massive demand for AI infrastructure, cloud services, and high-performance computing.
Alongside hyperscale spending:
Sovereign AI investments are projected to reach $75 billion
Neocloud providers will spend $181 billion to expand AI-ready infrastructure and services
These investments underscore the scale of global AI transformation and the competitive race among nations and cloud providers.
The Road Ahead for APAC’s Channel Ecosystem
The APAC channel stands at a pivotal moment. Partners that embrace specialization, AI integration, and cross-border service capabilities are positioned for rapid acceleration. Those that resist change or lack clear value differentiation may face rationalization pressures.
As AI reshapes customer expectations and hyperscale investments redefine the digital infrastructure landscape, APAC vendors and partners must align vision, capabilities, and collaboration models to thrive in the next phase of growth. By
Baburajan Kizhakedath
