US business-to-business technology spending through the reseller channel reached $35.3 billion in the first half of 2026, driven by continued demand for hardware and a sharp rate of expansion in cloud services, according to Circana’s "Future of B2B Technology" forecast published on 5 August.
Cloud growth fastest, hardware still dominant
The report shows a mixed picture. Cloud was the highest-growth segment, expanding by 15% year on year to about $1.69 billion in H1. But cloud remains a relatively small slice of reseller dollar volumes. The bulk of spending continues to sit in IT hardware, which accounted for roughly half of reseller revenue at $17.67 billion — up 11% year on year. Software and services combined reached $15.98 billion, growing 8%.
Circana emphasises that these figures are specific to the reseller channel — purchases made through indirect distribution partners — making them a practical barometer of what enterprises and midmarket buyers are actually procuring.
What the numbers mean for buyers and vendors
Two clear dynamics stand out from the data. First, hardware remains the revenue backbone for resellers and vendors. Although cloud is expanding fastest in percentage terms, hardware still moves the largest dollar amounts and therefore exerts the greatest influence on overall market health.
Second, the trajectory of each segment diverges in the forecast. Circana expects the momentum behind cloud to hold through the second half of 2026, while growth in IT hardware and software/services is forecast to moderate. Specifically, the firm projects hardware growth to slow to around 8% and software and services to decelerate to about 4% in H2.
For IT and procurement teams negotiating renewals or new multi-year cloud agreements, the sustained strength in cloud gives vendors some pricing leverage heading into renewal season. At the same time, organisations managing tight budgets will be watching those forecasted slowdowns in hardware and software closely.
Key figures at a glance
| Segment | H1 2026 revenue | Year-on-year growth |
|---|---|---|
| IT hardware | $17.67bn | 11% |
| Software & services | $15.98bn | 8% |
| Cloud | $1.69bn | 15% |
| Total (reseller channel) | $35.3bn | 10% |
Why the reseller channel matters
- The reseller channel reflects actual buying patterns of enterprises and midmarket organisations, not vendor list prices or direct-cloud billing alone.
- Channel sales provide insight into procurement cycles and renewal dynamics that influence vendor pricing and product strategy.
- The split between growth rates and absolute dollars highlights where vendors can scale revenue versus where market influence resides.
The report’s nuance matters: while cloud’s percentage gains make headlines, the heavy lifting in dollar terms is still performed by hardware. That tension will shape vendor playbooks — whether to chase high-margin cloud expansion or defend substantial hardware instal bases — and it will inform procurement bargaining positions in the months ahead.
As markets move into the second half of 2026, attention will shift to whether cloud can sustain its growth without cannibalising software and services margins, and whether hardware demand will cool as Circana forecasts. For organisations purchasing technology, the data underlines a continued need to balance short-term cost control with longer-term architecture decisions about cloud consumption and on-premise assets.
For UK readers watching global tech spending, the US reseller market is an early indicator of enterprise appetite and vendor momentum. Suppliers, resellers and buyers in this market will be closely watching how those H2 forecasts play out and adjusting strategies accordingly.
