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Value Added Reseller (VAR)

Definition - What does Value Added Reseller (VAR) 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.

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

Techopedia explains Value Added Reseller (VAR)

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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