Rise of the frontier partner: Why the channel model is being rewritten

"Are you a frontier company?"

It's a simple question from Dicker Data general manager of marketing and strategy, Ben Johnson, but one that goes to the heart of a major shift underway across the channel.

In a new report based on insights from the Dicker Data Microsoft Partner Advisory Council (PAC) event, partners, Microsoft executives and Dicker Data leaders explore how AI, security and changing customer expectations are reshaping the future of the channel. 

Licensing, infrastructure projects and managed services remain important, but customer expectations are changing faster than many partner business models were built to handle. In essence, the traditional channel playbook is under pressure. 

So what does the next generation of successful partners look like? 

Across the Dicker Data ecosystem, AI is no longer viewed as a future opportunity. It's actively reshaping customer conversations, business priorities and the services organisations are prepared to invest in.

As customers look for guidance on governance, security, adoption and business transformation, partners are increasingly being asked to deliver far more than technology.

First AI wave has left the station

One of the strongest ideas emerging from PAC is Microsoft’s concept of the "frontier firm" — organisations embedding AI into everyday operations, workflows and decision-making rather than treating it as a side project or pilot.

"The first AI wave has left the station," Johnson said. The challenge is increasingly about execution rather than exploration.

Customers are looking for help turning AI curiosity into measurable business outcomes, creating opportunities for partners around governance, adoption, security, workflow redesign and organisational change.

Johnson believes the implications extend far beyond AI projects themselves.

"Future winners will be outcome-led, better listeners, platform and IP thinkers, builders of repeatable value, and willing to break their own business models," he said. 

Security moves to the centre of the conversation

Security continues to emerge as one of the strongest commercial opportunities available to Dicker Data partners.

Microsoft's Asia SMB security sales lead, Jordan Hennessey, describes security as the entry point for broader conversations around AI, governance and digital transformation.

"Security is increasingly becoming a services conversation rather than a licensing conversation," he said. 

Partners are raising concerns around shadow AI, data leakage, governance gaps and the growing challenge of managing AI agents and non-human identities.

As organisations accelerate AI adoption, many are discovering that governance frameworks, policies and security controls are struggling to keep pace.

That creates opportunities for partners to deliver advisory services, readiness assessments, governance workshops and managed security offerings that help customers adopt AI safely and at scale.

Partners want a simpler path to growth

At the same time, partners continue to navigate an ecosystem that’s expanding just as quickly as customer demand.

Programs, incentives, co-sell motions, workshops and funding pathways all create opportunities, but many partners say they want clearer guidance on how those pieces fit together and where they can generate the greatest impact.

Microsoft corporate accounts lead Christian Longstaff acknowledges the challenge. "We don't have a sound problem, we have an awareness problem," he said. 

One of the clearest messages emerging from the channel is that opportunity exists, but partners want simpler ways to access it.

Many are looking for greater clarity around profitability, stronger co-sell engagement and easier ways to navigate Microsoft's growing portfolio of programs and initiatives.

Dicker Data's role is evolving too

As Microsoft's ecosystem expands, Dicker Data is increasingly positioning itself as more than a traditional distributor.

Executives describe the company's role as “helping partners connect the dots” between incentives, co-sell pathways, technical enablement, marketplace opportunities and go-to-market execution.

"We need to remove the friction," said general manager of Microsoft Cloud at Dicker Data, Sarah Loiterton.

Partners are navigating AI adoption, security requirements, funding pathways and a growing number of specialist Microsoft programs. In response, distributors are increasingly being called upon to help simplify complexity and identify new growth opportunities.

Next chapter for the channel

Despite the challenges, optimism remains high.

Microsoft distribution director for Asia, Andrew Joiner, describes SMB as one of the company's biggest growth opportunities globally, while partners continue to point to AI, security and business transformation as some of the largest commercial opportunities they have seen in years.

"It's no longer just about selling products; it's about solution selling," said Loiterton.

The channel opportunity is clear, but so is the challenge. Partners are being asked to do more than sell technology. They're increasingly expected to help customers navigate the operational, cultural and governance changes that come with AI adoption.

The full PAC report explores the major themes, commercial opportunities, partner insights and practical lessons shaping the next phase of channel growth, including Dicker Data and Microsoft's vision for the frontier partner and what it means for the future of the channel.

Download the report today.