Resellers accelerate disruption in IT ecosystem with value-added services

Resellers, especially Value-Added Resellers (VARs), are transforming the IT supply chain by delivering customised solutions and integrated services, accelerating innovation and market reach across complex sectors like cybersecurity, cloud computing, and enterprise IT.

In the IT ecosystem, resellers play a pivotal role as intermediaries between product creators—such as manufacturers, vendors, and distributors—and end users. These companies purchase IT products or services, which can range from hardware and software to cloud services, and then sell them either to businesses or consumers. Their function is crucial in indirect sales channels because they simplify procurement by enabling customers to source multiple technology solutions from a single provider, thereby avoiding the complexity of managing various vendor relationships. Additionally, by handling product sourcing, order processing, billing, and delivery, resellers relieve buyers of logistical burdens, offering convenience and efficiency. Their partnerships with vendors and bulk purchasing power often allow them to provide competitive pricing, sometimes bundled deals, which is especially advantageous to small and midsize businesses seeking easier access and consultative selling support.

Operating usually within vendor or distributor partner programs, resellers benefit from tiered discounts dependent on their purchase volumes and partnership levels, sometimes ranging from 10% to over 50%. These programs also include protections such as deal registration to safeguard sales opportunities, along with rebates and performance incentives. Vendors frequently support resellers with co-branded marketing resources, training, and sales assistance. In return, resellers generate profit by buying at discounted rates and selling at a markup, while managing critical customer-facing responsibilities including fulfillment and technical support.

Among various types, Value-Added Resellers (VARs) stand out by enhancing the core products they sell. Rather than simply reselling, VARs bundle products with additional services—installation, configuration, training, consulting, and ongoing support—to deliver tailored solutions. This approach is common in sectors with complex requirements like enterprise IT, cybersecurity, and healthcare technology, where bespoke integration and support are vital. For example, an IT VAR might supply networking equipment combined with on-site setup, or a software VAR might offer licensing bundled with implementation and asset management services. According to Gartner, VARs not only acquire goods at discounted rates but justify a markup by adding presales engineering, proof of concepts, and sales support, thereby creating more comprehensive and customised offerings. Webopedia and other industry sources reinforce this view, noting that VARs act as more than middlemen—they develop add-ons and additional services, sometimes combining multiple products into turnkey solutions, which makes them indispensable in the delivery of integrated IT systems.

Other reseller models include Direct Market Resellers (DMRs), who operate without physical storefronts and sell predominantly via online or telephone channels. These resellers compete largely on pricing, product selection, and rapid delivery and serve both consumer and business markets. Additionally, in hosting and internet services, web hosting resellers and Virtual Internet Service Providers (VISPs) purchase server capacity or internet services from larger providers and resell them under their own branding, often targeting niche or underserved segments.

Several major IT industries depend heavily on reseller networks. Enterprise software firms like Microsoft, Adobe, and IBM utilise resellers to reach varied business sizes. Cybersecurity providers such as Fortinet and Palo Alto Networks rely on VARs to implement complex security frameworks. Cloud service providers including AWS, Google Cloud, and Microsoft Azure partner with resellers to assist clients with onboarding and managing cloud infrastructure. Furthermore, various hardware products including servers, laptops, and networking equipment, and telecommunications services often reach end users through reseller channels, especially in regional or rural markets where local presence is crucial.

It is essential to distinguish resellers from distributors and dealers within this ecosystem. Distributors typically buy in large quantities from manufacturers and sell to resellers or dealers, acting as wholesalers. Dealers often function as smaller retail entities selling directly to consumers. Resellers, by contrast, may work alongside distributors but focus primarily on end-customer sales while sometimes adding services to enhance the value provided.

Overall, resellers—and particularly Value-Added Resellers—serve as critical connectors in technology markets, providing customers with more accessible, affordable, and tailored IT solutions while supporting manufacturers in expanding their reach and service capabilities.

📌 Reference Map:

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• Paragraph 4 – ^[1] (TechTarget), ^[2] (TechTarget)
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Source: Noah Wire Services