Putting the value in value added reseller: Why both manufacturers and customers rely on VARs

Many organizations struggle to keep tabs on their IT assets. The number of products, manufacturers, and licensing agreements is enough to make any person’s head spin. That’s why most companies use some sort of IT asset management (ITAM) to keep track of the various renewal dates and understand what licenses they have on hand. But even then they have little strategic direction for their licensing.

Software manufacturers too have their work cut out for them. They can’t afford to spend the time and money to find every potential customer for their software. In order to earn a reasonable profit on their products, they need a base of customers and a dedicated sales force.

To make the landscape more manageable for both the manufacturers and their ultimate customers, value-added resellers (VARs) serve as a liaison, helping manufacturers get their software in users’ hands while offering customers a range of manufacturer and software options that best fit their business objectives.

It’s too difficult for one customer to attain knowledge about every manufacturer, product, and licensing option on the market, just as it’s nearly impossible for manufacturers to gain clear insight into customer markets and needs. Since both spheres are so vast, VARs meet in the middle to fill the gap.

Value add for customers

No organization looking to license software or hardware has the time or resources to research every potential manufacturer’s products and compare the costs and benefits. VARs, on the other hand, have staffs devoted to staying up to date on the products available, as well as the nuances of every agreement. When customers work with VARs, they receive advice on which manufacturers and products can best support their goals, as well as guidance on manufacturer pricing. Continue Reading…

Tags: , , ,