Techaisle Blog

As an analyst, my lens is always focused on the foundational shifts reshaping the technology industry. Rarely do we encounter data as unambiguous as that which illustrates the burgeoning chasm between technology partners who are actively scaling their AI capabilities and those who remain static. This isn't merely about AI adoption; it's about the very economics of the channel, revealing a stark divergence in expected revenue and profitability that every technology vendor, channel partner, and discerning customer must confront head-on.

Techaisle recently studied 2500 channel partners, and this data provides an incisive look into "Expected Revenue Change" across these two distinct partner archetypes. The message is unequivocal: embracing AI for scaling is no longer a strategic option but a survival imperative that directly impacts the bottom line.

Let us dissect the profound implications of this data:

Having recently attended Zoom's 5th Analyst Event, "Perspectives," I emerged not just with notes, but with a profound sense of a company at a pivotal inflection point. For too long, the narrative around Zoom has been confined to "just meetings." While its ubiquitous video conferencing platform undeniably became a lifeline during the pandemic, the presentations at Perspectives unequivocally demonstrated a strategic pivot so ambitious, it merits a deeper dive. This shift is not just timely but essential. Techaisle's recent research of 2,100 midmarket firms vividly illustrates the accelerating demand for advanced technologies: 86% are prioritizing technology investments in workforce and employee experience platforms, and a staggering 91% are focusing on GenAI solutions. Furthermore, the familiarity and adoption of cutting-edge AI is growing rapidly, with 45% of core midmarket and 68% of upper midmarket already very familiar with Agentic AI, and 35% of core midmarket and 58% of upper midmarket actively piloting Agentic AI solutions. It is against this backdrop of surging demand for advanced workforce, experience, and AI capabilities that Zoom isn't merely adding AI; it's aggressively transforming into an "AI-first work platform," with a clear and intensified focus on partners to drive this evolution. This isn't just about new features; it's about fundamentally redefining how work gets done, and it carries significant implications for SMBs, midmarket, enterprises, and crucially, for the entire partner ecosystem.

The Provocative Core: Beyond the Meeting Room

The whispers about Artificial Intelligence have ceased. They have been replaced by the roar of active investment and strategic integration across the Small, Midmarket, and Upper Midmarket business segments. For technology vendors and channel partners, this isn't a future trend; it's the defining market imperative of today. The window for abstract discussions on AI's potential has closed. What remains is a critical, immediate demand for tangible solutions that deliver concrete business outcomes. Firms are no longer merely experimenting; they are actively integrating AI into their core functions to achieve competitive advantage. Are you ready to meet this demand, or will your opportunity cost of inaction be as high as that faced by businesses who fail to adopt AI?

The latest Techaisle research reveals an unequivocal commitment to AI across these vital business segments. This pervasive adoption signals a profound shift, with a vast majority of SMBs and Midmarket firms - 94% of SMBs and an even higher 96% of Upper Midmarket firms - currently using or planning to use Generative AI. This isn't just about exploring; it's about embedding AI into the very fabric of their operations. This commitment is underpinned by aggressive investment strategies, with 81% of SMBs and Midmarket firms planning to increase their AI investment in 2025, and nearly half of them anticipating increases of over 25%. The message is clear: these segments view AI as a cornerstone for future success. The perceived opportunity cost of not adopting AI is remarkably high, with a staggering 82% to 93% across all business segments agreeing or strongly agreeing on its significance. This overwhelming consensus underscores the urgency and necessity for technology vendors to pivot from general enablement to focused, impactful AI solution delivery.

Zoho, a company that has long prided itself on a vertically integrated, "own-the-stack" philosophy, has thrown down a significant gauntlet in the AI arena. While the rest of the industry has been loudly proclaiming AI capabilities, often built on a handful of mega-scale Large Language Models (LLMs), Zoho has been quietly building. Now, the curtain has been pulled back, revealing a comprehensive, multi-layered AI strategy that culminates in a move few might have predicted: their own homegrown, built-from-scratch LLM.

As an industry analyst, the immediate question is whether this audacious strategy is a masterstroke of vertical integration that will deliver unparalleled value, or a resource-intensive march into a highly competitive and rapidly evolving quagmire dominated by tech giants.

The Full Stack Unveiled: More Than Just an LLM