Up the value chain

10.07.2006
Where's the value in a Value Added Reseller (VAR)?

It's a question constantly posed in the industry. VARs are the experts in the field of providing solutions to the end-user (whether enterprises, mid-markets or SMEs), and they should know the best way to get a deal for their clients: under budget, on time, every time.

It's easy to be glib and say that we should get what we pay for. But if we take a deeper look we soon discover that the world of the VAR is not that simple.

VAR ecosystems

In a typical solutions channel structure, the VAR is the first and last line of support to the client. They advise, implement and provide maintenance and support to the end-user. In the meantime they also forecast, build pipelines and devise sales and marketing strategies so vendors can maintain a healthy margin to keep their business doors open. A delicate balance, and one that contributes to a sensitive channel ecosystem.

According to David Mitchell, senior consultant for Ovum: "Channels over the last five years have achieved a balance that works for vendors and end-users alike." However, he sees a change starting to manifest-one expected to have an impact on the way VARs do business, and how they view their revenue and business models moving forward.