When organizations need technology solutions that go beyond off-the-shelf products, they often turn to value added resellers (VARs). These specialized partners provide expertise, customization, and ongoing support that transform standard products into comprehensive business solutions, tapping into a market where enterprise software and IT services are predominant drivers of growth in overall IT spending.

Understanding how VARs operate can mean the difference between successful technology implementation and costly missteps. This guide examines the VAR ecosystem, from business models to selection criteria, giving IT leaders the knowledge they need to make informed partnership decisions.

VAR Meaning: Understanding the Basics

Definition and core functions

A value added reseller (VAR) is a company that purchases products from manufacturers, enhances them with additional services, features, or customizations, then resells the complete solution to end customers. Unlike standard resellers who simply distribute products, VARs add significant value through integration, support, and specialized expertise.

This model delivers more tailored solutions that meet specific business needs. VARs provide customization, support, and integration services that create more value for customers and distinguish them in the marketplace.

Evolution in the technology sector

The concept of VARs emerged from the need to offer customers complete solutions rather than piecemeal products. Over time, the technology sector evolved, and value added resellers began offering sophisticated services, including hardware and software integration, cloud migration, and cybersecurity. The VAR business has shifted towards offering managed services and ongoing support to meet new market demands.

Differentiation from standard resellers

Unlike basic resellers, who just pass products along, VARs customize products to meet their clients' needs. They deliver complete solutions. They integrate components, provide training, and offer post-sale services—resulting in higher customer satisfaction and loyalty.

VAR Business Model Explained

Revenue structure

Value added resellers generate revenue from both product sales and added services. They might charge for consulting, implementation, and ongoing support, creating multiple income streams. Some also establish recurring revenue models by offering maintenance contracts or managed services.

Partnership dynamics

To succeed, VARs form strong partnerships with manufacturers. These relationships provide access to training, discounts, and partner incentives, making it easier for VARs to sell products effectively. In return, manufacturers benefit from value added resellers' local market expertise and customer relationships.

Product sourcing and distribution channels

VARs source products from manufacturers or distributors and add value by bundling them with other solutions. Distribution channels vary, but many value added resellers work closely with manufacturers through partner programs designed to foster collaboration and encourage growth.

Examples of leading value added resellers

To make the concept of a VAR more concrete, consider major technology partners like CDW, SHI International, and Insight Enterprises. These companies are prominent examples of VARs. They don't just sell laptops or software licenses; they partner with hundreds of manufacturers to design, implement, and manage comprehensive IT solutions. They bundle hardware, software, cloud subscriptions, and professional services—such as network configuration, security audits, and ongoing support—into a single package for their enterprise customers.

VAR Services and Solutions Portfolio

VARs offer a comprehensive range of services that extend far beyond simple product sales:

• Technical implementation: Deploy and configure complex solutions including software systems, custom hardware assembly, and network configurations tailored to client environments

• Product customization: Modify software to integrate with existing systems, create specialized workflows, and enhance standard hardware to meet specific requirements

• Support and maintenance: Provide ongoing help desk services, troubleshooting, maintenance contracts, and timely updates to minimize downtime

• Integration services: Connect disparate tools and platforms to eliminate silos and ensure seamless operation across technology stacks

Value Added Reseller Benefits

For manufacturers

These resellers expand the market reach of manufacturers by customizing solutions for niche audiences. They also reduce the need for manufacturers to provide direct support, allowing them to focus on product development.

For end customers

Customers benefit from tailored solutions that meet their unique needs. Value added resellers also offer expert advice and ongoing support, making it easier for businesses to adopt new technologies confidently.

For channel partners

They add value by acting as intermediaries between manufacturers and customers. They improve product adoption and customer satisfaction, benefiting everyone involved in the supply chain.

Choosing a Value Added Reseller

When selecting a VAR partner, evaluate these key factors:

• Industry expertise: Verify they understand your sector's specific challenges and regulatory requirements

• Technical certifications: Confirm certifications with relevant manufacturers and technology platforms

• Service level agreements: Review response times, support availability, and maintenance service guarantees

• Track record: Request client references and case studies from similar implementations

• Partnership approach: Ensure they prioritize collaboration, transparency, and long-term relationships

VAR Market Ecosystem

Manufacturer relationships

Strong partnerships with manufacturers allow value added resellers to access exclusive products, training, and marketing resources. Many manufacturers offer partner programs to ensure VARs have the tools needed to succeed.

Distribution channels

VARs leverage both direct and indirect distribution channels. Some collaborate with regional distributors for logistical support, while others work directly with manufacturers to reduce costs and ensure faster delivery.

End-user connections

With deep knowledge of customer needs, VARs act as trusted advisors. Their ability to build strong relationships with end-users ensures that solutions are implemented effectively and generate long-term customer satisfaction.

Partner program structures

Manufacturers often create tiered partner programs that reward value added resellers based on sales performance and market penetration. These programs provide incentives, technical support, and co-marketing opportunities to help them grow.

VAR Technology Specializations

VARs typically specialize in one or more technology areas:

• Software solutions: ERP systems, business applications, productivity tools, plus training and customization services

• Hardware products: Servers, workstations, networking equipment, configured and deployed with complementary services

• Cloud services: Cloud migrations, multi-cloud management, SaaS implementations, and hybrid cloud strategies

• Security implementations: Firewalls, intrusion detection systems, compliance tools, and comprehensive cybersecurity frameworks

VAR Industry Trends and Future Outlook

Digital transformation impact

Digital transformation strategy is driving demand for cloud services, AI, and IoT solutions—areas where VARs excel in delivering value-added offerings, especially as private and public cloud workloads are expected to increase significantly.

Emerging technologies

Technologies like artificial intelligence, blockchain, and edge computing present new opportunities for VARs to expand their service portfolios and remain competitive.

Market evolution

The VAR landscape is shifting toward managed services and subscription-based models, a trend underscored by the rise of Software-as-a-Service (SaaS) as the primary driver behind cloud-service delivery, helping customers reduce capital expenses while ensuring continuous support.

Growth opportunities

The demand for tailored solutions and end-to-end services is growing, with overall IT spending on services, infrastructure, and software projected to reach $3.8 trillion. VARs can capitalize by investing in technical expertise and expanding into new technology domains.

Value Added Reseller Best Practices

Quality assurance

Delivering high-quality solutions ensures customer satisfaction and builds trust. VARs should establish robust quality control measures to maintain standards.

Customer service standards

Providing exceptional customer service is essential. VARs that offer fast, reliable support are more likely to retain clients and generate positive referrals.

Technical expertise maintenance

Continuous training and certifications help VARs stay ahead of technological advancements and maintain their competitive edge, which is critical in an environment where over half of all employees require significant reskilling and upskilling.

Partnership management

Successful VARs prioritize strong relationships with manufacturers and customers alike, fostering collaboration and ensuring mutual growth.

Making VARs work for your organization

The bottom line is, by understanding the role and value of a VAR, you'll be better equipped to select the right partner to enhance your technology investments. But managing the knowledge from VARs, vendors, and internal teams can create information silos that prevent you from realizing that value. To truly optimize your technology investments, you need a single source of truth that unifies this expertise.

Guru is the AI Source of Truth that connects all your company's information, including technical documentation and partner knowledge, into one company brain. Our Knowledge Agent delivers trusted, permission-aware answers right where your teams work, ensuring everyone has the correct information to support your technology stack. See how it works—watch a demo.