Another RSPA RetailNOW has come and gone, and as always, it served as an invaluable bellwether for the retail IT channel. This year, my conversations (from education sessions to board meetings and countless discussions with industry stalwarts) centered around three undeniable trends: the practical application of AI, the burgeoning landscape of data monetization, and the ever-critical domain of cybersecurity. For you, the trusted advisor, understanding these shifts isn’t just about staying current; it’s about identifying where to strategically invest your resources and adapt your offerings.
Convert AI from hype to real-world impact
AI has been a buzzword for a while, often obscured by futuristic visions that felt distant from the everyday realities of RSPA members. RetailNOW 2025 provided much-needed clarity, showcasing AI’s tangible impact in three key areas.
First, and most immediately accessible, is AI for user productivity. This is the low-hanging fruit: AI assisting with marketing copy, summarizing lengthy emails, or streamlining routine administrative tasks. However, I heard one particularly novel use case that stood out: a company leader leveraging AI to create a “virtual board of directors” for strategic guidance. Each board member has its own persona and speciality, providing a broad range of feedback and direction. This illustrates how AI, even in its current state, can augment leadership and decision-making in unexpected ways.
Second, we saw the potential for AI to improve internal business processes. Imagine feeding all your company’s data into an AI-powered data lake, enabling automation and efficiency gains across the board. While this level of integration might be a stretch for most smaller resellers right now, it highlights a future where AI can profoundly optimize back-office operations, from inventory management to human resources.
Finally, and perhaps most impactful for the core retail market, is the use of AI to enhance external customer interactions and merchant decision-making. At its simplest, this involves AI providing basic, yet effective, recommendations. In its more advanced forms, we’re talking about AI with access to deep customer data, making informed suggestions on inventory levels, dynamic pricing, and personalized promotions. For ISVs, the opportunity here is to embed AI capabilities directly into your POS or other merchant-facing software, empowering retailers with intelligent insights to drive sales and optimize operations.
Data monetization is the next frontier of recurring revenue
Just as payment processing transformed the retail IT channel by introducing new recurring revenue streams beyond hardware sales, data is poised to be the next major money-maker. We’re already seeing new “data companies” entering the space, some even offering POS systems for free, because their primary interest lies in the valuable data these systems collect.
This trend demands careful consideration. Data is undeniably valuable, and if VAR partners are the ones bringing customers to these platforms and enabling the data flow, they absolutely deserve a cut of that revenue. The traditional POS software companies, many of whom have long-standing, channel-friendly relationships, are actively exploring data monetization strategies. It’s crucial that as they navigate this new landscape, they prioritize their VAR partners and establish equitable revenue-sharing models.
Beyond compliance to true trusted advisor status
I wouldn’t consider RetailNOW a security-focused show. Sure, there were some sessions dedicated to the topic, but overall I’d warn show attendees that my perception is that they’re sleeping on security as a threat. I see security manifesting in two critical areas: internal protection for VARs and ISVs and external protection for their merchant customers.
First, internally, VARs and ISVs must harden their own defenses. Recent incidents, like the ConnectWise breach, serve as stark reminders that a vulnerability in your systems can directly expose your customers to significant risk. You cannot be a trusted advisor if your own house is not in order. This means implementing robust internal cybersecurity practices to prevent breaches that could compromise client data or systems.
Second, and equally vital, is external security for merchant customers. Many POS VARs mistakenly believe that since credit card data is largely out of scope (due to PCI compliance and tokenization) and much data resides in the cloud (presumed to be the software vendor’s problem), they are absolved of responsibility for broader security. This is a dangerous misconception. If a breach occurs, your customer will still call you, the trusted advisor they rely on for their technology. You are on the hook, regardless of where the data resides or whose “fault” it technically is.
To truly be a trusted advisor, VARs and ISVs must proactively guide their customers on comprehensive security. This includes adopting best practices for both their own operations and their clients’, such as strong password hygiene, multi-factor authentication (MFA) across all systems, regular phishing awareness training, and, crucially, well-defined incident response and business continuity plans. These last two are often overlooked until a crisis hits, but they are absolutely essential for minimizing damage and ensuring resilience in the face of a cyberattack.
RSPA RetailNOW 2025 underscored that the retail IT channel is evolving rapidly. By strategically addressing these trends in AI, data monetization, and security, you can position your business and your customers for sustained success in this dynamic market.
