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).
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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