A value-added reseller (VAR) is a company that resells technology products from manufacturers, such as firewalls, switches, wireless access points, servers and software licenses, and adds its own services on top. The added value is typically design, configuration, installation, integration and help with licensing and support contracts. VARs are a common way for mid-market businesses to buy networking and security equipment, because many manufacturers sell to companies of that size mainly through partners.
At a glance
- A VAR sells you products made by others and adds services such as design and installation.
- It earns margin on products and manufacturer incentives, plus fees for its services.
- VARs often specialize in a few manufacturers and hold partner certifications with them.
- Many also offer ongoing support or managed services, blurring the line with managed service providers.
- Hardware support and software updates often come from manufacturer support programs bought through the VAR.
What problem it solves
Buying network and security infrastructure involves more than picking a product. Someone must size it for the sites and users, choose the right licenses and support tiers, configure it, install it, and integrate it with what is already there. Many manufacturers do not provide those services directly to mid-sized customers and route them to partners instead.
A VAR combines the purchase with the expertise. One partner can design a firewall or Wi-Fi refresh, quote the hardware, licensing and support, install it and hand over a working system. For businesses with a small IT team, that avoids learning a complex product line from scratch for a project that happens every few years. A VAR that tracks your license and support contract dates can also warn you before renewals lapse, which matters because expired support can mean no software updates or hardware replacement when something fails.
How it works
Partner relationships. VARs are authorized by manufacturers, often at tiered partner levels tied to certifications and sales volume. Higher tiers may bring better pricing, deal registration and access to manufacturer engineers.
Design and quote. The VAR assesses your needs, often with a site survey for wireless or a review of current equipment, then proposes products, licenses, support contracts and professional services.
Supply. Products are ordered through the manufacturer or a distributor and shipped to you or to the VAR for staging and configuration.
Implementation. The VAR’s engineers install, configure and test the equipment, then hand over documentation.
Support. Hardware replacement and software updates usually come through the manufacturer’s support contract. The VAR may add its own support, monitoring or managed services for an ongoing fee.
For help planning and buying networking and security equipment, see our network firewalls overview.
When it matters for buyers
- Hardware refreshes. Firewall, switch and wireless replacements are typical VAR projects.
- New offices. Building out network and Wi-Fi for a new site combines equipment, cabling and installation.
- License and support renewals. Expiring subscriptions and support contracts are often renewed through the VAR that sold them.
- Choosing between manufacturers. A VAR that sells several brands can compare them, though it may have preferences shaped by its partnerships.
- When ongoing management is needed. Decide whether the VAR, an MSP or your own team will run the equipment after installation.
Questions to ask vendors
- Which manufacturers do you partner with, at what level, and how does that affect your recommendation?
- Can you price hardware, licenses, support contracts and professional services as separate lines?
- Are you able to register this deal with the manufacturer, and what does that mean for our pricing?
- Who handles support after installation, and what is your role versus the manufacturer’s?
- When do our licenses and support contracts expire, and how will you notify us?
- What documentation and configuration backups will we receive at handover?
How it differs from an MSP and a technology advisor
A managed service provider (MSP) runs and supports systems for an ongoing monthly fee, while a VAR’s core business is selling and implementing products; many firms do both, so check which role a proposal covers. A technology advisor helps you choose service providers, such as carriers and cloud vendors, and you usually sign directly with them, while a VAR is the party you buy products from. An aggregator resells carrier services, such as internet circuits, rather than equipment.