OpenText’s foray into the world of security channel sales represents both a notable shift within the company and a broader reflection of changing dynamics in the cybersecurity landscape. While OpenText has long been viewed as an enterprise-grade vendor, its recent channel-focused moves—embodied by the hiring of industry veteran Michael DePalma—offer fresh insights into how major technology players are reimagining partner engagement, collaboration, and value delivery in response to ever-shifting security threats and partner demands.
Traditionally, OpenText’s reputation in the software ecosystem has been rooted in enterprise content management, cloud services, and specialized data solutions. The pivot toward aggressive partner engagement reflects a recognition that the channel is not just a distribution mechanism, but a strategic conduit for innovation, growth, and trust in security-sensitive environments.
DePalma, who joined OpenText Security at the start of the year, brings extensive channel experience from leading roles at Datto and Kaseya. His perspective is shaped by a decade of navigating the intricacies of partner ecosystems—ranging from managed service provider (MSP) enablement to orchestrating channel-driven sales models. For DePalma, joining a company at the cusp of its channel journey was an “exciting challenge,” underscoring OpenText’s belief that success in the crowded security market will hinge on both robust technology and a laser focus on ease of partnership.
The need for greater clarity on what OpenText offers—highlighted by DePalma’s remark that “the number one question I still get is what does OpenText do”—reveals both an opportunity and a challenge. OpenText’s multi-layered portfolio now spans endpoint detection and response (EDR), artificial intelligence-driven capabilities, Microsoft solutions, and more. Yet, brand recognition in the channel remains a work in progress, and how successfully the company addresses this will likely influence its competitiveness and mindshare among partners.
This philosophy stands out in a security market often criticized for its complexity and for vendor behaviors that generate friction for partners: restrictive deal registration, inconsistent support, confusing licensing models, and slow enablement. By promising an “as seamless as possible” experience, OpenText is betting that operational ease and trust will drive loyalty amid a crowded vendor landscape.
Moreover, the company’s work in the Microsoft ecosystem, including being a Microsoft reseller, speaks to the growing demand for integrated cloud solutions and joint value propositions that stretch beyond isolated point products. DePalma notes surprise at how underrecognized this facet of OpenText is; amplifying this element, along with continued cloud innovation, may be critical to partner and customer value in an environment where digital transformation is accelerating.
OpenText’s channel build-out comes amid sustained growth in cybersecurity spending. According to a recent report by Canalys, global cybersecurity spending via the channel was expected to surpass $80 billion annually, a reflection of growing MSP reliance and customer demand for managed security as a service (SECaaS). At the same time, channel satisfaction remains uneven, and partners are becoming more selective about which vendors earn mindshare and wallet share.
OpenText’s approach—by DePalma’s own admission—blends the energy of a “start-up” within the structure and resources of an established technology leader. This hybrid model, if executed well, offers unique advantages: agility in responding to partner needs, credibility with enterprises, and the ability to scale successful practices quickly across markets and verticals.
Yet, it is OpenText’s pronounced focus on artificial intelligence and automation that signals its intent to push beyond table stakes. Partners receive training and support not just in core security technologies, but in leveraging Microsoft Copilot and other AI-infused solutions that promise to reshape how security, productivity, and collaboration intersect.
“For us, the goal is trying to support partners in thinking about AI two ways: how it will help you internally, and how you can make revenue off it with your clients,” DePalma explains. This dual perspective recognizes that AI is not simply a technical upgrade—it is a catalyst for managed service providers and value-added resellers to create new revenue streams, streamline service delivery, and experiment with co-managed and fully outsourced security models.
This perspective is echoed by many in the channel who believe that while AI will transform operations, empathy, context, and institutional knowledge remain critical differentiators. Customers facing sophisticated threats and regulatory scrutiny want trusted advisors who can interpret alerts, tailor solutions, and respond proactively. Automation reduces grunt work; it does not eliminate the premium on expertise and relationship-building.
Furthermore, as the threat landscape grows more complex—with attackers leveraging their own automation, AI-driven lures, and multi-stage campaigns—customers increasingly seek partners who can deploy layered defenses, orchestrate incident response, and infuse security into every digital workflow. OpenText’s investment in enabling human-centric, partner-delivered security is therefore not just a value-add, but a business necessity.
This sentiment is gaining traction across the broader security channel. Increasingly, MSPs and systems integrators find themselves wrestling with vendor sprawl and integration challenges: service stacks are pieced together from a patchwork of best-of-breed, niche, and legacy solutions. When vendors simply focus on their own products, partners are burdened with overhead—be it in terms of cost, training, or integration.
By contrast, a more collaborative approach—exemplified by OpenText’s partnership with Secure Code Warrior—offers the promise of tighter integration between platforms, streamlined workflows, and joint go-to-market motions. In this model, partners benefit from unified threat visibility, shared threat intelligence, and an ecosystem where innovation is shared rather than siloed.
While time will tell how far OpenText and the wider industry push this model, there is growing recognition that the age of “winner takes all” platform wars may be giving way to an era where open APIs, partnerships, and coinnovation define competitive advantage.
For MSPs, VARs, and integrators, the opportunity is both compelling and fraught with new challenges: to discern real differentiation from market noise, to invest in people and automation in equal measure, and to advocate for integrated, customer-centric solutions that span the ever-blurring lines between security, productivity, and business growth.
OpenText’s journey is still unfolding. The coming quarters will reveal whether its channel-first aspirations translate to measurable impact for partners and customers. Yet, the willingness to embrace change, back words with concrete enablement, and prioritize collaboration bodes well for its prospects in a market that prizes agility, trust, and relevance above all else. As the security channel continues to reshape itself, OpenText’s evolution stands as a test case for how established vendors can rethink their place in a transformed ecosystem—and for how partners can leverage such shifts for lasting competitive advantage.
Source: Channel Insider OpenText’s Michael DePalma on Security Channel Opportunity
OpenText’s Strategic Channel Pivot: Past Enterprise Legacy Meets Partner-Centric Future
Traditionally, OpenText’s reputation in the software ecosystem has been rooted in enterprise content management, cloud services, and specialized data solutions. The pivot toward aggressive partner engagement reflects a recognition that the channel is not just a distribution mechanism, but a strategic conduit for innovation, growth, and trust in security-sensitive environments.DePalma, who joined OpenText Security at the start of the year, brings extensive channel experience from leading roles at Datto and Kaseya. His perspective is shaped by a decade of navigating the intricacies of partner ecosystems—ranging from managed service provider (MSP) enablement to orchestrating channel-driven sales models. For DePalma, joining a company at the cusp of its channel journey was an “exciting challenge,” underscoring OpenText’s belief that success in the crowded security market will hinge on both robust technology and a laser focus on ease of partnership.
The need for greater clarity on what OpenText offers—highlighted by DePalma’s remark that “the number one question I still get is what does OpenText do”—reveals both an opportunity and a challenge. OpenText’s multi-layered portfolio now spans endpoint detection and response (EDR), artificial intelligence-driven capabilities, Microsoft solutions, and more. Yet, brand recognition in the channel remains a work in progress, and how successfully the company addresses this will likely influence its competitiveness and mindshare among partners.
The Channel’s New Priorities: Simplicity, Seamlessness, and Collaboration
As the demand for cybersecurity solutions escalates, one of OpenText’s core differentiators—according to DePalma—is a relentless commitment to simplicity and partner-centricity. “I really want partners to see us as the easiest channel vendor they’ll work with... We sell through RMMs and marketplaces, and you can come to us directly. Our goal is to make it as seamless as possible for partners to get what they need,” he said in a recent interview.This philosophy stands out in a security market often criticized for its complexity and for vendor behaviors that generate friction for partners: restrictive deal registration, inconsistent support, confusing licensing models, and slow enablement. By promising an “as seamless as possible” experience, OpenText is betting that operational ease and trust will drive loyalty amid a crowded vendor landscape.
Moreover, the company’s work in the Microsoft ecosystem, including being a Microsoft reseller, speaks to the growing demand for integrated cloud solutions and joint value propositions that stretch beyond isolated point products. DePalma notes surprise at how underrecognized this facet of OpenText is; amplifying this element, along with continued cloud innovation, may be critical to partner and customer value in an environment where digital transformation is accelerating.
Unlocking Market Share: The Security Channel in 2024 and Beyond
With the proliferation of security vendors and solutions, the struggle for channel attention is fiercer than ever. Market analysts and channel watchers agree: partners increasingly gravitate toward vendors who offer not just compelling products, but cohesive integration across workflows and genuine support for MSP and VAR business models.OpenText’s channel build-out comes amid sustained growth in cybersecurity spending. According to a recent report by Canalys, global cybersecurity spending via the channel was expected to surpass $80 billion annually, a reflection of growing MSP reliance and customer demand for managed security as a service (SECaaS). At the same time, channel satisfaction remains uneven, and partners are becoming more selective about which vendors earn mindshare and wallet share.
OpenText’s approach—by DePalma’s own admission—blends the energy of a “start-up” within the structure and resources of an established technology leader. This hybrid model, if executed well, offers unique advantages: agility in responding to partner needs, credibility with enterprises, and the ability to scale successful practices quickly across markets and verticals.
EDR, AI, and Training: The Cornerstones of OpenText’s Channel Playbook
Cybersecurity is rarely static, and OpenText’s channel ambitions reflect an acute awareness of rapid evolution in both technology and threats. Endpoint detection and response (EDR) sits at the heart of its security portfolio, mirroring industry trends where visibility, containment, and mitigation at the endpoint have become indispensable in defending against ransomware, targeted attacks, and insider threats. Modern EDR platforms by leading vendors feature behavioral analytics, real-time remediation, and cloud-based management—capabilities that partners increasingly demand for both efficiency and efficacy.Yet, it is OpenText’s pronounced focus on artificial intelligence and automation that signals its intent to push beyond table stakes. Partners receive training and support not just in core security technologies, but in leveraging Microsoft Copilot and other AI-infused solutions that promise to reshape how security, productivity, and collaboration intersect.
“For us, the goal is trying to support partners in thinking about AI two ways: how it will help you internally, and how you can make revenue off it with your clients,” DePalma explains. This dual perspective recognizes that AI is not simply a technical upgrade—it is a catalyst for managed service providers and value-added resellers to create new revenue streams, streamline service delivery, and experiment with co-managed and fully outsourced security models.
The Human Element: Why Personal Touch Still Matters in the Age of AI
Despite the growing buzz around agentic and generative AI, there is a persistent anxiety among some MSPs: will automation and self-service tools make human-led services redundant? DePalma is quick to dismiss such fears. “At the end of the day, it’s still more efficient to leverage an expert, and we want to enable partners to be prepared and realize the opportunities,” he argues.This perspective is echoed by many in the channel who believe that while AI will transform operations, empathy, context, and institutional knowledge remain critical differentiators. Customers facing sophisticated threats and regulatory scrutiny want trusted advisors who can interpret alerts, tailor solutions, and respond proactively. Automation reduces grunt work; it does not eliminate the premium on expertise and relationship-building.
Furthermore, as the threat landscape grows more complex—with attackers leveraging their own automation, AI-driven lures, and multi-stage campaigns—customers increasingly seek partners who can deploy layered defenses, orchestrate incident response, and infuse security into every digital workflow. OpenText’s investment in enabling human-centric, partner-delivered security is therefore not just a value-add, but a business necessity.
Reimagining Channel Collaboration: Toward a More Integrated Ecosystem
One of the most intriguing aspects of OpenText’s channel vision is its aspiration to foster a “return” to genuine vendor and partner collaboration. According to DePalma, “MSPs want more vendors working together, and we want to lead that charge... If we can be at the forefront of more collaboration, I think other vendors will realize they need to do that to stay competitive.”This sentiment is gaining traction across the broader security channel. Increasingly, MSPs and systems integrators find themselves wrestling with vendor sprawl and integration challenges: service stacks are pieced together from a patchwork of best-of-breed, niche, and legacy solutions. When vendors simply focus on their own products, partners are burdened with overhead—be it in terms of cost, training, or integration.
By contrast, a more collaborative approach—exemplified by OpenText’s partnership with Secure Code Warrior—offers the promise of tighter integration between platforms, streamlined workflows, and joint go-to-market motions. In this model, partners benefit from unified threat visibility, shared threat intelligence, and an ecosystem where innovation is shared rather than siloed.
While time will tell how far OpenText and the wider industry push this model, there is growing recognition that the age of “winner takes all” platform wars may be giving way to an era where open APIs, partnerships, and coinnovation define competitive advantage.
Security Channel Trends: Opportunities and Risks for Today’s Partners
The promise of OpenText’s evolving channel program must be weighed alongside market realities. The security channel faces both exceptional opportunities and notable risks—some intrinsic to the sector, others shaped by broader macroeconomic and technology trends.Key Opportunities
- Explosion in Managed Security Demand: As threat vectors multiply and regulatory requirements tighten, customers are turning to MSPs and MSSPs at unprecedented rates, pushing vendors to double down on partner enablement and support.
- AI-Driven Innovation: Those who invest early in AI-based tooling, automation, and data-driven insight (as OpenText is advocating) are poised not just for operational gains but for entirely new lines of business, such as managed detection and response (MDR) powered by AI triage.
- Collaboration-First Ecosystems: Vendors that foster open, collaborative channel strategies—integrating with peers, offering open APIs, and supporting mutual enablement—are seeing faster adoption and higher satisfaction rates among channel partners.
- Hybrid Cloud and Microsoft Integration: For customers accelerating their hybrid cloud journeys, vendors with deep Microsoft integration and strong migration/support services are becoming go-to partners, expanding revenue potential across both security and productivity workloads.
Potential Risks
- Partner Fatigue and Vendor Sprawl: With every vendor touting a “unique” channel experience, partners risk becoming overwhelmed by overlapping offerings, shifting requirements, and incessant product rebrands. Differentiation based on ease, openness, and true support is essential.
- Overpromise on AI: The hype around generative and agentic AI is considerable. Channel partners should maintain healthy skepticism, demanding proof points and actual ROI over abstract capability claims. Without meaningful differentiation, AI can quickly devolve into checkbox features.
- Security Product Commoditization: As EDR, SIEM, and XDR offerings proliferate, price pressure and commoditization continue to rise. Vendors must combine technical excellence with robust partner value (margins, training, co-marketing) to maintain a compelling proposition.
- Integration Friction: Even the most advanced solutions can become liabilities if they are hard to integrate or manage within partner toolsets. Ease of integration and robust APIs will separate winners from also-rans.
Table: Comparing Key Factors for Channel Security Vendors
| Factor | OpenText (as described) | Typical Legacy Vendor | Next-Gen Channel Leader |
|---|---|---|---|
| Product Breadth | Broad (EDR, AI, Cloud, Microsoft) | Focused (often siloed) | Multi-platform, cloud-native |
| Partner Model | Flexible, supports RMM & marketplaces | Deal reg/VAR-heavy | Cloud marketplaces, consumption-based |
| Ease of Doing Business | Prioritizes seamlessness | Often complex | High touch, integrated support |
| AI & Automation | Significant investment | Early stage / minimal | AI-first, open APIs |
| Collaboration Philosophy | Advocates vendor co-op | Vendor lock-in | True ecosystem integration |
| Training & Enablement | Robust, includes Microsoft Copilot | Basic product training | End-to-end journey, business consulting |
Analysis: Can OpenText Deliver on Its Channel Promise?
The coming year will likely be a proving ground for OpenText’s newly invigorated channel play. Success will depend on several key factors:- Authenticity of Simplicity: If OpenText can genuinely reduce friction and complexity, it will win advocates among partners weary of administrative burdens.
- Execution on Collaboration: Moving from words to action—such as delivering joint integrations and meaningful ecosystem benefits—will differentiate OpenText from “me too” channel programs.
- Real Results from AI: Partners should closely scrutinize metrics around automation effectiveness, incident response times, and partner profitability stemming directly from OpenText’s AI initiatives.
- Transparency with Partners: OpenText’s willingness to acknowledge gaps (such as ongoing efforts to clarify its portfolio and capabilities) is refreshing, but real transparency also requires candid communication around roadmaps, support issues, and program changes.
Final Outlook: An Evolving Channel Ecosystem with OpenText Poised for Growth
OpenText’s renewed commitment to the channel, embodied in its investment in leadership, AI, and collaboration, mirrors tectonic shifts underway across the entire security market. Partners and customers alike are clamoring for vendor relationships that move beyond transactional models to trusted, long-term partnerships underpinned by transparency and shared innovation.For MSPs, VARs, and integrators, the opportunity is both compelling and fraught with new challenges: to discern real differentiation from market noise, to invest in people and automation in equal measure, and to advocate for integrated, customer-centric solutions that span the ever-blurring lines between security, productivity, and business growth.
OpenText’s journey is still unfolding. The coming quarters will reveal whether its channel-first aspirations translate to measurable impact for partners and customers. Yet, the willingness to embrace change, back words with concrete enablement, and prioritize collaboration bodes well for its prospects in a market that prizes agility, trust, and relevance above all else. As the security channel continues to reshape itself, OpenText’s evolution stands as a test case for how established vendors can rethink their place in a transformed ecosystem—and for how partners can leverage such shifts for lasting competitive advantage.
Source: Channel Insider OpenText’s Michael DePalma on Security Channel Opportunity
