VAR-to-VAR

VAR-to-VAR is a business model based on cooperation between value-added resellers (VARs) that allows the companies to obtain professional services and solutions outside their specialties or geographic areas... (Continued)

What is VAR-to-VAR?

VAR-to-VAR is a business model based on cooperation between value-added resellers (VARs) that allows the companies to obtain professional services and solutions that would not have been accessible to them otherwise.

Successful VAR-to-VAR partnerships expand geographic reach, tap each other's expertise and enhance the brainstorming process. Such cooperative ventures can increase the buying power of both companies and reduce overhead and production cost. By buying in bulk, VAR-to-VAR partnerships are sometimes able to negotiate pricing from suppliers of critical components. VAR-to-VAR partnerships have successfully challenged larger, consolidated enterprises for lucrative contracts when neither of the smaller companies could have done so alone.

VARs tend to be ideal clients for one another because they understand each other's service-related challenges. The ultimate result is good for the end user because it encourages the evolution of the best possible product. Nevertheless, some companies find the VAR-to-VAR paradigm difficult to accept, especially if their past experiences have involved rivalries with other players in their field.

This was first published in August 2008

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