Value Added Reseller

What Does Value Added Reseller Mean?

A value added reseller (VAR) is an independent business or vendor employed to enhance original equipment manufacturer (OEM) product. VARs purchase OEM product to provide turnkey and/or customized solutions to end users.

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A VAR is also known as an independent software vendor (ISV).

Techopedia Explains Value Added Reseller

VAR solutions are common in technology and electronics, where software and hardware manufacturers bundle proprietary products for end users.

A VAR may purchase or lease the rights for a number of reasons, as follows:

  • To reconfigure a computer or OS
  • To add memory, software features or peripherals for product enhancement
  • To target specialized market segments, such as users requiring computer-aided design (CAD), video or photo editing.

A VAR may brand OEM product with one or more integrated third-party solutions. This type of VAR solution includes original OEM warranty and technical support/licensing documentation.

Concomitantly, OEMs may enhance product value by integrating software/hardware products or solutions from third party manufacturers. This strategy is often implemented in siloed marketing and sales scenarios that would otherwise be redistributed to VARs and VAR networks.

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Margaret Rouse

Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…