Many businesses rely on a variety of products like software, hardware, and IT services to keep their operations running efficiently. However, selecting the right solutions and making them work seamlessly together can be a complex and time-consuming task. A value added Reseller simplifies this process by not only selling the necessary products but also providing additional services and customized enhancements to suit each customer’s specific needs. By offering a complete package, VARs help businesses save time, reduce complexity, and maximize the value of their investments.
Many businesses choose to work with a Value-Added Reseller through a program VAR that offers additional services, making the technology implementation more seamless. This blog will discuss what VARs are, how the value added reseller software model works, and why many businesses choose to work with them.
What Is A Value Added Reseller (VAR)?
A Value Added Reseller is a company that purchases technology products like software, hardware, or other tools from manufacturers and then resells them to customers, adding extra services or features. These better-quality services may take a variety of forms: installation, tailoring, training, or maintenance. The idea is to make the products more convenient or better fitted to the specific needs of the user. A VAR, for example, might take a basic software package and adapt it to the client’s business processes, integrate it with other systems, and provide ongoing technical support.
In other words, what is a value added reseller? It’s just a business that takes the normal product and adds a bunch of services to it in order to make it even better and sell it. This ‘value addition’ can take many forms, such as tailored configurations, technical training, or even extended warranties. Essentially, anything that makes the product more suitable for the customer can constitute added value. This is the unique selling point of VARs-they don’t just sell products; they enhance them to meet the specific needs of their customers.
Why Consider a Value Added Reseller?
There are several reasons why working with a VAR can be advantageous for businesses, especially when implementing complex technology solutions:
Expert Guidance
VARs are not just sellers; they are experts in the products they offer. Their knowledge can guide you in choosing the right software or hardware, customizing it to your company’s needs, and integrating it into your existing systems. For instance, a software value added reseller might help you select a customer relationship management (CRM) software that aligns with your sales process and then customize the software to track the specific metrics your business needs. This expert guidance instills confidence and helps you avoid the risk of selecting the wrong technology.
Time-Saving
Implementing technological solutions can be a time-consuming process, especially for organizations with limited IT staff. VARs can help streamline this adoption process, saving you valuable time and resources. They handle activities related to initial setup, configuration, and installation, allowing your internal staff to focus on their core responsibilities. This not only reduces downtime but also gets your new system up and running much faster than if you were to handle everything yourself, providing a sense of relief from the deployment burden.
Single Point of Contact
One of the biggest advantages of engaging the services of a VAR is dealing with a single contact point for all technology requirements. This means that companies can depend on one VAR for all their needs, from initial procurement to ongoing maintenance. This avoids the hassle of dealing with different vendors for different products, and it also lessens the sense of risk that might arise from balancing several service contracts. This concentration can significantly alter the game for companies without a sizable IT workforce, making technology procurement and management more efficient and less time-consuming.
Ongoing support:
Many VARs offer ongoing support services that extend well beyond the initial sale. This can include technical support, software updates, maintenance, and troubleshooting. Having this continuous support can be particularly valuable in industries where technology failures can disrupt critical operations, such as healthcare or financial services. It provides a sense of security, knowing that your technology will stay up and running smoothly over time.
The Value Added Reseller Business Model
The value added reseller model typically follows three main steps: procurement, customization, and reselling.
Procurement
What is VAR in procurement? In this first step, the VAR purchases products, such as software licenses, hardware components, or cloud services, from vendors or manufacturers. For example, they might buy licenses for popular software like Microsoft Office or Adobe Creative Cloud.
Customization/Enhancements
This is where the VAR adds value to the product by offering higher-valued services like installation of the product, modifications, or providing technical support. If the product is a software solution, for example, to fit the customer’s process better, the VAR may customize the software or integrate it with other systems. As we see the benefits of value addition, it makes the product useful for the end customer, and hence, there is justification for asking for a higher price.
Reselling
Finally, the VAR sells the enhanced solution to the end-user, very often for a higher price than the one he bought because of the added services. In most enterprises, purchasing from a VAR means getting a fully integrated solution that works with the business’s running processes rather than just a mere product.
Understanding the difference between resale vs resell is important in the VAR model. VARs often resell enhanced solutions for a higher price due to the added services. Knowing what value-added reseller software is helps businesses get more comprehensive solutions while reducing the complexity and time required for deployment. It allows companies to invest in technology that is ready to use right out of the box, saving both time and resources.
Benefits of Working with a VAR
Using a VAR can offer several significant benefits to organizations, particularly those looking to integrate new technologies:
Access to Expertise
Further, VARs can focus on specific products and industries; as such, they can authoritatively provide consultancy with the right solution. In fact, this comes into particularly good play when dealing with complex technologies, including network infrastructure, cybersecurity, and cloud services. Tech resellers that focus on cybersecurity, for instance, assist businesses in picking the right firewalls, antivirus software, and intrusion detection systems to protect against cyber threats. They also help them set their respective tools to maximum effectiveness.
Customized Solutions
Unlike traditional resellers who sell generic products, VARs customize their offerings to meet the unique requirements of each business. For instance, a value added reseller software company might customize an enterprise resource planning (ERP) system to include features specifically required by a manufacturing company, such as inventory tracking and supply chain management. This customization ensures that the technology fits seamlessly into the existing workflow, which can improve efficiency and reduce the need for further modifications.
Cost Savings in the Long Run
Although working with VARs may have higher upfront costs due to the extra services, it usually pays off in the long term. Properly set up technology boosts productivity while reducing downtime and maintenance costs. For example, a VAR that specializes in top cybersecurity VARs will be able to implement a holistic security solution that helps avoid expensive data and hacker-attributable downtime.
Access to Relationships with Vendors
Quite often, a VAR has good relations with its vendors or manufacturers, which are helpful for the business enterprise in many ways. Because of the close ties, the reselling vendor may provide access to the VARs for better pricing, priority in support, or early access to the releases of new products. Companies utilizing the services of a VAR can reap the benefits from these relationships without going through the trouble of negotiating with the vendors themselves. Indeed, a few VARs, especially those having reseller status from vendors, may offer certain specialized services or incentives because of their close relationship with the manufacturer.
Bundled Services and Products
One of the largest advantages of engaging a VAR is procuring bundled solutions. A VAR might combine hardware, software, installation services, and ongoing support into a single package that is somewhat lower in total cost compared to the individual component purchases. For example, assume that a business requires a new server setup. A VAR can also bundle in a package that includes the server hardware, operating system, installation, and all related technical support to make it easier for the company to get everything in a single purchase.
Challenges of Working with a Value Added Reseller Software
While there are clear benefits to partnering with a VAR, there are some potential challenges to consider:
Higher Initial Costs
Because VARs provide additional services, the upfront costs may be higher compared to purchasing products directly from vendors. Businesses need to evaluate whether the added benefits, such as expert installation and ongoing support, justify the extra cost. It is, however, important to put this initial cost into perspective with the long-term benefit of having a more integrated and stable solution.
Dependency on the VAR
The company may find itself fully dependent on the VAR for continuing support, maintenance, and troubleshooting. This presents a problem if the VAR changes its services, hikes its prices, or goes out of business. The businesses should make provisions to have a value added reseller contract that describes terms of support in addition to the contingency plans.
Limited Product Line
It is very common for VARs to specialize in their products or deal exclusively with a few vendors. This can have a constraining effect on businesses’ options. A number of companies may need several VAR frameworks to provide them with the types of technology product choices they desire.
Contractual Obligations
Such representation usually comes with a contract between a company and a VAR involving service level agreements, exclusivity agreements, or even long-term commitments. Such commitments are detrimental to flexibility, especially considering that the company’s needs change over time. Any VAR contract should be carefully reviewed to assess all the terms and conditions.
Examples of Value Added Resellers
There are many well-known VAR value added resellers in different industries. Here are a few examples:
PureVPN
PureVPN is a strong example of a value added reseller in the cybersecurity space, particularly in providing VPN services. Through its VPN reseller program, PureVPN offers businesses the ability to resell VPN services under their branding. This white-label approach means companies can integrate PureVPN’s technology into their offerings and provide secure internet access solutions to their clients.
With PureVPN’s white label software reseller model, businesses don’t have to build VPN technology from scratch. Instead, they can use PureVPN’s infrastructure and support to rebrand the product for their customers.
CDW
CDW is a leading IT reseller that offers a range of products and services, including hardware, software, and IT solutions. Their offerings include managed services, security solutions, and cloud computing. As a top cybersecurity VAR, CDW provides specialized services to protect businesses from cyber threats.
SHI International
SHI, an established VAR, sells everything from software reseller licensing to cloud services. It specializes in cloud implementations for enterprise businesses and offers end-to-end support to ensure successful migrations.
Insight
Insight is a technology reseller that also sells IT products and services, including hardware procurement, software deployment, and managed services. As an expert in cloud services with a focus on digital innovation, I have helped many companies optimize their IT.
Zones, Inc.
Zones offer comprehensive IT solutions comprising hardware, software, cloud computing, and cybersecurity. With a strong focus on managed services, Zones is able to provide complete solutions tailored to business needs. For example, the company offers cloud management services that include data storage, virtual servers, and disaster recovery planning. As an IT reseller, Zones helps businesses through the complexities of technology procurement and integration.
Connection
Yet another popular technology reseller is Connection. It sells a wide array of tech products and services, from networking and data centers to end-user computing. Connection’s strategy is to work closely with clients first to understand their technology goals and then provide solutions that benefit the customer. Everything from software licensing to fully managed IT services can be done through this company, which truly makes them a correct fit for whatever businesses may need other than just selling the product.
Dell Technologies Partners
Dell works with many value added reseller companies to deliver customized hardware and software solutions. These partners help businesses implement Dell’s technology in ways that best fit their needs, whether it’s through integrating servers, storage solutions, or network management tools. By working with a Dell VAR partner, businesses can take advantage of Dell’s resources and expertise while receiving customized service and support.
VAR vs. MSP – Understanding the Key Differences
While both Value Added Resellers and Managed Service Providers offer crucial technology solutions, their approaches to service delivery and ongoing support differ significantly. Businesses need to understand these differences to decide which type of partner best suits their needs. Let’s explore how each works and the main distinctions between them.
VARs: Focused on Product Sales with Added Services
The VARs usually deal with the “resell” aspects of technology products in the form of software, hardware, and IT solutions and add value by offering customization, integration, and training. From their traditional role, VARs often enhance the product they sell to suit customer-specific needs by making it more functional and attuned to the customer’s company operations.
For example, a software reseller can sell CRM solutions to a business and offer further customization to make the software correspond to his sales process. Installation of the product, configuration, and even training of employees in how to use it effectively usually lies within the VAR role. For the most part, involvement with a VAR is project-based: they involve themselves with the client for a fixed period, usually to see through some sort of one-time implementation or upgrade. Some do provide extended support to fix ongoing issues, but it isn’t really their primary function.
A key advantage of VARs is their deep expertise in specific products or industries. VARs are particularly useful for companies that need specialized, customized VAR solutions or for businesses that are undertaking large-scale, complex technology integrations. Their services end when the project is successfully delivered, making them ideal for companies looking for a partner for short-term projects like setting up a new system or deploying new software.
MSPs: Continuous IT Management and Support
On the other hand, Managed Service Providers (MSPs) take a proactive, continuous approach to managing a business’s IT infrastructure. Rather than just focusing on individual projects, MSPs are responsible for providing ongoing support, maintenance, and monitoring of a company’s entire IT ecosystem, typically under a subscription model.
MSPs handle a variety of services that are critical for keeping a business’s technology running smoothly. These include network monitoring, cybersecurity, data backup, software updates, and troubleshooting. An MSP’s involvement is continuous, as it acts as an extension of the client’s IT department. They make sure that the company’s systems are secure, up-to-date, and optimized for performance. For example, an MSP might monitor a business’s network to detect and prevent cyberattacks or manage cloud resources to ensure they are being used efficiently.
Key Differences Between VARs and MSPs
Let’s examine the differences between Value-Added Resellers and Managed Service Providers. While both types of companies provide technology solutions to businesses, their roles, service models, and approaches differ significantly.
Scope of Involvement
VARs focus on selling and initially implementing technology products, typically to business customers for short-term projects. Most of their work entails building or customizing technology to meet their customers’ particular needs, with no ongoing management after the implementation is complete.
On the other hand, MSPs offer long-term, continuous IT management and support. They handle daily operations like system updates, security monitoring, and troubleshooting under a subscription-based service model. So, with all this ongoing involvement, MSPs are an extension of the IT department for the client to make sure all systems remain up and secure over time.
Type of Services
The main focus of VARs is on the customization, installation, and product-specific services. For example, value added reseller software will configure a certain software solution that meets the unique needs of some specific department, like sales or marketing. An MSP, however, offers core IT management services, including network monitoring, data backup, and cybersecurity. A business in this aspect needs to manage more than just specific products; it also needs to manage its whole IT infrastructure.
Project vs. Ongoing Service
VARs are best for businesses seeking help with one-time projects such as setting up a new system or deploying software solutions. Their engagement ends when the project is completed. Meanwhile, MSPs are better suited for companies needing continuous IT support to ensure that their systems are always operational and secure.
Cost Model
VARs typically involve a one-time cost for the products and services provided during the implementation phase. Any additional support is usually offered as an add-on. Meanwhile, MSPs operate on a subscription-based model, where businesses pay a fixed monthly fee for ongoing IT management and support. This model can offer predictable costs and ensure continuous service.
Ideal Use Cases
VARs are best for businesses looking to purchase specific products and services for a project-based need—such as implementing new software, upgrading a server, or customizing a technology solution for their operations.
In contrast, MSPs are Ideal for businesses looking for end-to-end IT management. Companies that don’t have an in-house IT team or that need comprehensive support across multiple systems and networks will benefit more from an MSP’s ongoing services.
VAR vs. OEM – Key Differences
Original Equipment Manufacturers (OEMs) and VARs also have distinct roles:
- OEMs
OEMs primarily produce hardware or software components that other companies integrate into their products or sell under different branding. For example, a computer manufacturer may use an OEM to supply components like processors, hard drives, or memory modules. OEMs do not typically provide the added services that a VAR financing would, such as installation or customization.
- VARs
Purchase products from OEMs and add services to create a complete solution before selling to the end-user. For instance, a vendor reseller might buy servers from an OEM, set up the operating system, configure the network, and then sell the fully assembled and ready-to-use server to the customer. Adding value can have several benefits, as it can make a significant difference for businesses that prefer to buy tailored and ready-to-deploy solutions.
How to Find VARs?
Finding a reliable reseller for value added benefits can be crucial for companies looking to implement new technology. Before choosing a VAR, it’s important to check which reselling vendors they partner with, as this can influence the range of products and services they offer. Here are some steps to identify suitable VARs:
- Check Vendor Recommendations
Many technology vendors have built networks of partner VARs that are certified to sell and support their products. Companies like Microsoft, Cisco, and HP have large partner programs that include training and certification. Choosing a VAR from the vendor-recommended list can be a good way to ensure the reseller has the appropriate expertise to support the product.
- Industry-Specific VARs
Some VARs specialize in certain industries, such as education, healthcare, or manufacturing. Businesses should seek out value added reseller software companies with relevant experience. For example, a hospital looking to implement a new patient management system may want to partner with a VAR that specializes in healthcare technology solutions.
- References and Client Feedback
Before engaging a VAR, it’s wise to ask for references or case studies from previous clients. This information can provide insights into the reseller’s service quality, expertise, and ability to deliver on promises. Online reviews and testimonials can also be helpful in evaluating a VAR’s reputation.
- Certification Levels
Many IT resellers hold certifications from leading technology companies, indicating a certain level of expertise and training. Certifications can be a sign of a reseller’s capability to deal with specific technologies or industries. For instance, top cybersecurity VARs might hold certifications from companies like Palo Alto Networks, Fortinet, or Symantec, showing their ability to implement and manage security solutions effectively.
- Evaluate Their Partner Programs
Some VARs are part of exclusive VAR programs with leading tech vendors. These programs often provide the VAR with special access to resources, discounts, and training that they can pass on to their clients. Businesses looking for a value added reseller should consider a VAR’s status within these programs to assess their level of vendor support.
Pros & Cons of the VAR Business Model
Pros:
- Specialized Knowledge:
VARs often have deep expertise in specific industries or products, providing businesses with tailored recommendations that best suit their needs. For example, a VAR software company focused on finance can help a bank implement compliance-focused software solutions.
- Comprehensive Services:
Many VARs bundle services like installation, training, and ongoing support with the products they sell. This can save businesses time and resources compared to sourcing these services separately.
- Strong Vendor Relationships:
VARs often have close relationships with vendors, giving them access to better pricing, priority technical support, and early updates. Companies working with a technology reseller can benefit from these established connections.
- Simplified Procurement:
Businesses can streamline their purchasing processes by working with a single VAR partner for multiple products and services, reducing the need to manage multiple vendors.
Cons:
- Higher Initial Costs:
Buying from a VAR generally means a higher upfront investment due to the value added services. While these services add value, businesses must determine whether or not the added cost is worth the situation at hand.
- Vendor Lock-In:
Depending on the terms of the value added reseller software contract, companies may face difficulties switching to other providers or products. Contracts may include exclusivity agreements or long-term commitments that limit flexibility.
- Service Quality Varies:
Not all VARs provide the same level of expertise or service quality. It’s essential to vet VARs thoroughly to avoid potential issues.
- Limited Choice of Products:
Some VARs may only sell products from a limited range of vendors. If a business needs a specific brand or solution, it may need to look elsewhere.
Conclusion
Among all well-thought-out business decisions, one may be a company’s choice to partner with a Value Added Reseller to receive, manage, and gain maximum advantage from its technology investments. To guarantee that the technology is used effectively, the VAR software solutions include installation services, customization, and aftercare support in addition to the product itself. By making operations more efficient and effective, this type of holistic strategy helps businesses get the most out of their technology investments.
One of the best options available for companies looking for valid technology partners is PureVPN’s reseller program. PureVPN helps organizations resell secure VPN services under their brand. With PureVPN’s vast infrastructure throughout the world, it will take little time for enterprises to become VPN resellers in the cybersecurity vertical with a strong solution. They can sell premium VPN services to their respected clients through partnerships with PureVPN, hence expanding their service bouquet and growing their standing in the competitive IT industry.