A business that enhances an existing product or service by incorporating additional features, integrations, or services before reselling it to end customers. The value-added component is what differentiates a VAR from a standard distributor or retailer. This value often comes in the form of customization, installation, consulting, training, or ongoing support tailored to the customer’s unique needs.
VARs play a crucial role in complex technology ecosystems, particularly in industries where products are not sold as standalone items but rather as part of comprehensive solutions. For instance, a VAR might purchase hardware or software from a manufacturer, then bundle it with complementary tools, proprietary software, or implementation expertise to deliver a turnkey solution for a specific market segment.
Manufacturers and service providers benefit from VARs because they extend market reach and customer support without expanding their own operations. Meanwhile, customers gain from the VAR’s domain expertise and localized support, which can significantly improve deployment success and total cost of ownership.
VAR relationships are typically formalized through partnership or reseller agreements, which define pricing, licensing, and service expectations. Many vendors operate structured partner programs to attract and train VARs, ensuring that they maintain product knowledge and provide consistent quality across the reseller network.
In modern contexts, the VAR model has evolved beyond physical hardware and traditional software licensing. Cloud platforms, SaaS products, and managed service providers (MSPs) have incorporated the same principle, offering layered value such as analytics, integration, and automation. This evolution has blurred the line between VARs, system integrators, and channel partners. Still, the central idea remains: to enhance and resell a solution in a way that adds measurable value to customers.
Related Martech Zone Content
