--- title: "Vendor Consolidation Strategy for MSPs: How to Decide Which Vendor Programs to Keep, Reduce, or Exit" description: "Most vendor consolidation advice is about your customers’ stack. This is about yours: how many vendor programs you can afford to hold, and how to choose." image: https://www.altamiq.com/hubfs/Vendor%20Consolidation%20Strategy%20for%20MSPs-1.png --- [Skip to content](https://www.altamiq.com/blog/vendor-consolidation-strategy-for-msps-how-to-decide-which-vendor-programs-to-keep-reduce-or-exit#main-content) [![logo-horizontal](https://www.altamiq.com/hs-fs/hubfs/logo-horizontal.png?width=1959&height=424&name=logo-horizontal.png)](https://www.altamiq.com/) - [Platform](https://www.altamiq.com) - [Who It's For](https://www.altamiq.com) - [vs. PRMs](https://www.altamiq.com) - [Implementation](https://www.altamiq.com) - [Pricing](https://www.altamiq.com#altamiq-pricing) - [Features](https://www.altamiq.com/features) - [Blog](https://www.altamiq.com/blog) Sign in Request a demo → - [Platform](https://www.altamiq.com) - [Who It's For](https://www.altamiq.com) - [vs. PRMs](https://www.altamiq.com) - [Implementation](https://www.altamiq.com) - [Pricing](https://www.altamiq.com#altamiq-pricing) - [Features](https://www.altamiq.com/features) - [Blog](https://www.altamiq.com/blog) Request a demo → Sign in ![](https://www.altamiq.com/hs-fs/hubfs/Vendor%20Consolidation%20Strategy%20for%20MSPs-1.png?width=1669&height=942&name=Vendor%20Consolidation%20Strategy%20for%20MSPs-1.png) # Vendor Consolidation Strategy for MSPs: How to Decide Which Vendor Programs to Keep, Reduce, or Exit ![Altamiq](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Altamiq October 23, 2026  Vendor consolidation is usually discussed as something an MSP sells: help customers reduce the number of tools and vendors they run. This post is about the version nobody sells and every MSP needs. How many vendor programs can your own firm afford to hold, and how do you decide which to keep? Every program you belong to has a running cost: certifications to maintain, assessments to pass, portals to log into, agreements to honor, and a partner manager to keep warm. Those costs are real even when the vendor charges no fee. A portfolio that has grown by accident, one signed agreement at a time, usually carries programs whose cost exceeds their return.   ## Why programs accumulate   - **A client asked for it.** A single customer wanted a particular product, so you signed, and the program stayed after the customer left. - **It was cheap to join.** Entry tiers cost little, so nobody weighed the cost of keeping them current. - **A competitor had it.** Fear of being excluded from a deal drove a signature. - **Nobody owns the exit.** Joining has a champion. Leaving has none.   ## A scoring model for each program   Score each vendor program from 1 to 5 on the criteria below. Weight them to match your strategy. The numbers matter less than being forced to compare programs against the same yardstick. | **Criterion** | **The question it answers** | **Suggested weight** | | --- | --- | --- | | Revenue and margin | How much of your income depends on this vendor, and at what margin? | 25% | | Client dependency | How many clients would be affected if you left? | 20% | | Cost to maintain | Certification fees, hours, and people time per year. | 20% | | Program stability | How often has the vendor changed its program in ways that cost you? | 10% | | Strategic fit | Does it support where the firm is heading? | 15% | | Relationship quality | Do you get useful support and clear communication? | 10% |   ## A worked example | **Program** | **Revenue** | **Cost** | **Stability** | **Total (weighted)** | **Call** | | --- | --- | --- | --- | --- | --- | | Vendor A (core) | 5 | 3 | 4 | 4.2 | Invest | | Vendor B (core) | 4 | 4 | 3 | 3.8 | Maintain | | Vendor C | 2 | 2 | 2 | 2.4 | Reduce | | Vendor D | 1 | 1 | 3 | 1.9 | **Exit candidate** |   *Illustrative scores. Cost is scored so that 5 means cheap to maintain. Totals use all six criteria; only three are shown for space.*   ## Decision rules   - **Exit candidates** are programs that score low on revenue and strategic fit and high on cost. Look at them first. - **Reduce** means dropping to a lower tier, letting some certifications lapse deliberately, and stopping investment, while keeping the relationship. - **Maintain** means doing what is needed to keep standing, and nothing more. - **Invest** is for the few programs where a higher tier would clearly pay for itself.   ## The traps   1. **Consolidating onto the vendor with the most certifications rather than the best margin.** Certifications measure effort already spent, not return. 2. **Missing dependencies.** One vendor’s status can depend on another’s. In the Fortinet Engage brochure we reviewed, the cloud-oriented tiers require AWS Select Partner status. Dropping AWS might cost you a Fortinet benefit. Map dependencies before you cut. 3. **Ignoring program volatility.** Cisco retired Gold, Premier, and Select in January 2026. Salesforce collapsed 170 badges into 28 competencies in March 2026. A program that rebuilds itself every couple of years costs more to keep than its tier name suggests. 4. **Forgetting the clients.** Leaving a vendor is a project for every client that depends on it.   ## An exit checklist   - List every client using the vendor’s products, and the contract end date for each. - Check what the agreement says about notice, transfer of licenses, and any funds or credits that might be clawed back. - For Microsoft CSP, confirm how subscriptions move if you change status. Moves between partners are now monitored. - Stop paying for certifications you no longer need, and tell the engineers holding them. - Remove portal access for every user, and note the date. - Tell affected clients early, and offer a path to a replacement.   > **The honest question:** If this vendor announced tomorrow that it was ending its partner program, how long would it take you to find out who and what is affected? If the answer is “a few weeks,” the program is not being managed.   ## Running the consolidation review step by step   A consolidation review is a project with a start and an end. Here is a sequence that keeps it from turning into an endless debate.   1. **Inventory every program.** Include the ones nobody mentions. Check portals, agreements, and invoices. 2. **Gather the numbers.** Revenue, margin, and the cost to maintain, for each program, for the last twelve months. 3. **Map dependencies.** Which programs depend on others, which certifications serve several, which clients rely on which vendor? 4. **Score and place each program.** Use the framework above. Do it in a working session with people who know the vendors. 5. **Decide and communicate.** Record the decision and the reasons. Tell the people affected. 6. **Execute and verify.** Confirm each change with the vendor and update your records.   ## Who should be in the room   Include a commercial owner, a delivery lead, a finance representative, and someone who speaks for the clients. Excluding delivery means you will miss technical dependencies. Excluding finance means the cost figures will be guessed. Excluding the client voice means the plan may break something customers rely on.   ## What a good outcome looks like   A successful review does not always shrink the portfolio. Sometimes it confirms the current set and identifies two or three programs where a modest increase in investment would pay off. Sometimes it identifies programs to step down from. The outcome that matters is that every program you hold is held deliberately, with a reason you could explain to a colleague.   | **Outcome** | **Typical action** | **Follow-up** | | --- | --- | --- | | Invest | Plan the next tier and the budget for it. | Business case reviewed in six months | | Maintain | Hold standing at current effort. | Re-score at next review | | Reduce | Step down a tier or let spare credentials lapse. | Confirm client impact is nil | | Exit | Notify clients, end the agreement properly, remove access. | Archive records and document why |   ## Communicating the decision   How you communicate a consolidation decision shapes how it lands. Prepare three short messages. For staff, explain what is changing, what it means for their certifications and work, and what will not change. For clients, describe the continuity plan and the point of contact. For the vendor, give notice in the form the agreement requires, and keep the tone professional, because you may want the relationship again.   Record the reasoning and the numbers behind each decision. A year later, when someone asks why you left a program, the answer should be a document, not a recollection.   ## Revisiting the decision   Decisions to leave are not permanent. Markets move and vendors improve. Add the programs you leave to a short watch list with a review date, and record what would have to change for the decision to be reversed. That keeps the portfolio flexible without carrying the cost of every program in the meantime.   ## Frequently asked questions   ### Does consolidation mean leaving vendors? Not necessarily. It can mean stepping down a tier, stopping certification investment, or holding a minimal standing. ### How often should we review the portfolio? Twice a year, using the same scoring model each time so trends are visible. ### What is the biggest risk in cutting a vendor? The clients that depend on it. List them and their contract dates before deciding.   ## Further reading - [Gartner survey on vendor consolidation](https://www.scworld.com/analysis/most-organizations-looking-to-consolidate-security-vendors-in-2022) — Reports a Gartner survey in which 75% of organizations were pursuing security vendor consolidation in 2022. It concerns customers’ security stacks, not partner programs. ([scworld.com](http://scworld.com)) - [CompTIA on fewer vendor relationships](https://connect.comptia.org/blog/less-is-more-how-evolving-channel-relationships-can-yield-happier-partners) — CompTIA State of the Channel 2024: more channel firms now work with one to four vendor programs, and 'very satisfied' partners rose from 18% to 33%. ([connect.comptia.org](http://connect.comptia.org)) - [Cisco's partner designations FAQ](https://www.cisco.com/c/dam/en_us/partners/cisco-partner-designations-faq.pdf) — Cisco states it retired the Gold, Premier and Select partner levels on January 24, 2026, with new designations (e.g. Portfolio Partner, Preferred Partner) effective January 25, 2026. ([cisco.com](http://cisco.com)) - [Salesforce replaced 170 badges with 28 competencies](https://www.salesforceben.com/salesforce-massively-overhauls-partner-program/) — Salesforce-ecosystem press coverage of the overhaul: badges replaced by competencies and four tiers consolidated to two. ([salesforceben.com](http://salesforceben.com)) - [Microsoft's earlier partner program overhaul](https://techtarget.com/searchitchannel/news/252514822/Microsoft-Cloud-Partner-Program-resets-channel-focus) — Describes Microsoft's 2022 move from Silver/Gold to Solutions Partner designations scored out of 100 (70 needed), showing partner programs are rebuilt periodically. ([techtarget.com](http://techtarget.com))   > **AltamIQ:** AltamIQ gives you the information a consolidation decision needs: every program you hold, what it costs to maintain, who holds the certifications behind it, and how the vendors depend on one another. It is built for the firm deciding how many programs to carry, not the vendor running one.   ## Sources & verification - Keyword validation: Ahrefs Keywords Explorer, US — “vendor consolidation” 250 searches per month, keyword difficulty 1, CPC about $6. - Fortinet Engage 2.0 brochure (Exclusive Networks, 2021) for the AWS Select dependency — [https://www.exclusive-networks.com/nl/wp-content/uploads/sites/21/2021/03/Fortinet-Partnerprogramma-Engage-2.0-Benefits-and-Requirements.pdf](https://www.exclusive-networks.com/nl/wp-content/uploads/sites/21/2021/03/Fortinet-Partnerprogramma-Engage-2.0-Benefits-and-Requirements.pdf) - Cisco 360 retirement of Gold, Premier, and Select (Jan 2026) and Salesforce 170-to-28 badge consolidation (Mar 2026): see posts 5 and 6 sources. - The scoring model and weights are original and illustrative. 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