Technology services distributors (TSDs) are piloting partnerships with cybersecurity software vendors as partners and customers demand a broader vendor list and service model.

In April, TSD Avant announced a partnership with managed detection and response (MDR) vendor Arctic Wolf. This is a milestone in the emerging TSD market, which is refining its vendor portfolio to meet the needs of mid-market and enterprise customers. Arctic Wolf's MDR services are already common in typical TSD portfolios, but it uses its own technology stack rather than borrowing other vendors' platforms, providing self-service capabilities for internal cybersecurity teams.

Self-service options are a key differentiator and also mark an expansion of vendor options in the broker model. TSDs are attracting OEM vendors whose technology customers want to buy and manage directly rather than consume through service providers. Technology advisors (TAs) selling through TSD vendor contracts are also demanding these options. Several blue-chip OEMs have signed partnership agreements, including content delivery network providers Akamai and Cloudflare, but many TAs have a wish list of potential vendors in mind.

"We are starting to have these conversations," JP Panzica, CEO of Accelerate Partners, told Channel Dive. "If we can have OEMs in the channel, we can look to procure these products and achieve greater success in the enterprise market."

This is not a simple shift. Cybersecurity product vendors typically sell through resellers, bypassing the broker model of TSDs and TAs. They have traditionally relied on value-added resellers (VARs) for billing and customer management. To work with TSDs, vendors must accept a long-tail commission model that is unfamiliar to their leaders. Having channel management and operations roles in place is also crucial.

"It's very rewarding and exciting, but there have also been some tears because it takes a lot of work to succeed in the new frontier of the TSD channel," said Mark Stackpoole, CEO of Detroit TSD GTS.

TSDs are promoting their model to vendor leaders behind the scenes and training their partner base to sell cybersecurity products. Distributors need sales partners to attract vendors, and they need a deep vendor list to attract partners.

"You need a balance of both," said Alex Danyluk, Chief Strategy Officer at Avant. "They grow together and reinforce each other. This is an exciting time as the TA and TSD industries are accelerating with a flywheel effect."

Some TSDs hope that successful sales with initial software vendors will attract the attention of competing vendors.

"Overall, we bring more new customer logos to vendors than any other method. Period," said Koby Phillips, Senior Vice President of National Partners at Telarus. "So as long as that holds true, there's always appeal here."

The strength of TAs and TSDs in acquiring new customers is widely recognized.

"This is definitely the fastest-growing new customer acquisition segment in Akamai's partner ecosystem," Dave Allen, Vice President and Head of Geo Sales at Akamai, told Channel Dive last year.

Scraped knees

The challenge for the TSD market is staying relevant after the sale, as vendors seek to offload service components to partners and CFOs question residual commissions.

"Sometimes our distribution model is like a cake. The front end is nice, but on the back end you have to pay the price," Phillips said.

TSD agreements come under scrutiny when channel and sales leadership changes or when vendors stop emphasizing top-line revenue.

Coro Cybersecurity's recent exit from direct TSD agreements is one example. This SMB-focused cybersecurity vendor heavily invested in the broker model three years ago, adding channel managers and sponsoring TSD conferences. However, the company notified TSDs in October 2025 that it would no longer sell through them. Coro continues to pay commissions on acquired deals but is directing future deals to VARs and managed service providers that bill customers directly.

Stackpoole said TAs and TSDs were a bit late in building sales momentum with Coro.

"We talked to other TSDs, and they said 'We're on the verge of closing 20 deals a month,'" he said. "I think if they had another six months of metrics and financial data, they would never look back."

There is still a pipeline between Coro and agency partners, albeit indirectly. The company has agreements with service provider Adaptiv Networks and TSD P2. TAs now access Coro through these intermediaries. But according to Coro CEO Joe Sykora, exiting direct agreements does not mean abandoning TSDs.

"As Coro has evolved into a 100% channel-focused company, new TSD opportunities are now supported through our ecosystem of channel partners rather than direct TSD sales motions," Sykora said in an email. "TSDs continue to play an important role in our channel strategy, and we remain committed to supporting these opportunities through partners. Our focus is on creating a model that makes it easier for partners to do business with Coro while maintaining a strong focus on the MSP and reseller community. Although the structure has evolved, our commitment to supporting TSD-driven business remains unchanged."

Overlay model

Coro's approach may gain momentum as MSPs and MSSPs become more relevant to vendors.

Five years ago, Cisco tested the TSD model for its unified communications and contact center service offerings but eventually withdrew. Another alternative, which other key network vendors are considering, is appointing technology overlay personnel to specifically support MSP partners selling through agents.

This model would avoid the impression that TSDs are competing with their MSP and MSSP vendor partners, which is one reason many TSDs avoid registering as Microsoft resellers—AppDirect and Intelisys are notable exceptions in their market. In fact, many of their vendors are already Microsoft CSPs.

"This at least allows for some sensible boundaries," said William Madison, managing member of consulting firm Innovative Networx.

Nevertheless, Madison said OEM vendors may take a dual-track route, balancing an ecosystem approach with a direct-to-TSD approach.

"The more these underlying technology providers invest in this space, the more they can capture different routes to market," Madison said.

A multi-pronged approach will be easier for large companies capable of piloting new sales models. Helping smaller vendors build confidence is crucial to the TSD market, which is known for aligning with challenger brands.

"The smaller versions of those OEMs have to be more deliberate, and as long as they can handle that part, I think you'll see more of them trying to get into this motion," Phillips said.

GTS has worked to meet OEMs halfway, requiring less upfront investment and filling channel management gaps. According to Madison, the company has become a unique incubator for relationships between network vendors and TSDs.

This approach is not industry standard. Larger TSDs choose a "show me" model, requiring vendors to commit to a full standard investment.

"Dedicated resources, sponsorship budgets, active participation in our events," Managing Director Alan Sandler and Chief Revenue Officer Justin Marano said in an email. "These are conditions, not preferences. A shortlist of vendors truly investing in the channel always beats a long list of names."

Sandler Partners describes its approach as more conservative than other TSDs. The company is recruiting SaaS and cybersecurity vendors for direct relationships but wants to avoid overlap in its product list and needs to quantify partner demand for products.

Omdia Principal Analyst Devan Adams said TSDs need to recruit both MSSPs and OEMs to increase their relevance in cybersecurity.

"TSDs must attract both if they want to overcome the stigma of being seen primarily as telecom distributors rather than true technology distributors; although connectivity/network still accounts for the majority of TSD billing," Adams said. "Top TSDs account for about 40%; this is the slowest-growing part. So for their own survival, TSDs need to reduce dependence."