VAR (value-added reseller)

A VAR (value-added reseller) is a company that resells software, hardware and/or networking products and provides value beyond order fulfillment. VARs may offer a range of professional services as their primary value-add.

A VAR (value-added reseller) is a company that resells software, hardware and/or networking products and provides value beyond order fulfillment.

That value may take a number of forms. Traditionally, a VAR created an application for a particular hardware platform and sold the combination as a turnkey solution. In many cases, such bundles targeted vertical market niche applications.

While such custom-application VARs still exist, many VARs have turned to services as their key value-add. A VAR may provide consulting, design, implementation and training services around the hardware, software and/or networking components it resells. VARs offering such professional services in addition to products are often referred to as solution providers. Such companies typically form channel partnerships with one or, more often, multiple product vendors for assistance in building and marketing solutions.

Many product vendors offer partner programs that target VARs. Smaller VARs, however, may need to source products through distributors if the vendors they work with use a two-tier distribution model.

VARs have evolved over the years, with the VAR-to-solution provider shift providing one example. More recently, VARs have been becoming managed services providers (MSPs). As product margins decline and competition among solutions providers intensifies, VARs have looked to managed services as a source of recurring revenue and improved profitability. A VAR may become a pure-play MSP or add managed services as a line of business to complement its VAR operation.

Also see OEM (original equipment manufacturer), a company that includes hardware components from other companies in its own product.

This was first published in April 2015

Continue Reading About VAR (value-added reseller)

Glossary

'VAR (value-added reseller)' is part of the:

View All Definitions

Dig Deeper on Channel business management strategies

Pro+

Features

Enjoy the benefits of Pro+ membership, learn more and join.

Related Discussions

Margaret Rouse asks:

What types of value-adds do VARs offer?

1  Response So Far

Join the Discussion

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

MicroscopeUK

SearchCloudProvider

SearchSecurity

SearchStorage

SearchNetworking

SearchCloudComputing

SearchConsumerization

SearchDataManagement

SearchBusinessAnalytics

Close