2021 VAR industry trends new challenges and opportunities

2021 VAR industry trends-new challenges and opportunities

Introduction

Value-added resellers (VAR) are organizations that improve or modify product offerings from the primary source for reselling. Notwithstanding the product given by suppliers or makers, the organizations may likewise sell their supplementary products (be it an item or a service). Typically, the value exudes from offering proficient support services, such as good assembly, consulting, installation, modification, and implementation.

Value-added resellers are prevalent in industries such as IT managed services, automobiles, and furniture. ePlus happens to be one of the key players in the VAR industry. It is among the top US-based IT managed services providers with associations in different countries. The expertise of ePlus is spread across the entire technology spectrum, including audio and video communication.

TRENDS IN THE VAR INDUSTRY: 2021

A DIRECT VENDOR-TO-CUSTOMER RELATIONSHIP

VARs have the expertise in guiding the customers through an already-prevalent product from the OEM. From intricate software usage to precious add-ons and customizations, a direct relationship with customers has been established by the VARs. Such customers were not able to have that one-on-one experience with the vendor.

In present times, there has been a constant change in the role of the VARs since vendors are now directly reaching out to the customers, via direct sales and providing them that personal connection. Such a process wears off the VAR as the middleman, which means VARs are in direct competition with vendors.

COMPETITION THROUGH TRANSPARENCY IN PRICING

Gone are those days when customers used to approach a vendor or VAR without any prior knowledge about pricing. Online review platforms and comparison sites have made it more than easy to compare prices across various solutions and D2C options. Such a situation leads to VARs being pressurized to offer the best possible pricing on their offerings to wear out the competition.

THE PRESENCE OF HOSTING AND CLOUD COMPUTING Previously, solutions were hosted on private cloud for customers by VARs. All of that has now changed. The rise of public cloud hosting options has saturated the market, thereby making it easier for customers to set up their solution which is way less costly when compared to private ones.

GREATER EMPHASIS ON SECURITY SOLUTIONS The fact that security breaches have become more and more common, specifically in many industries that have shifted to the cloud, has led the cybersecurity expenditure to double general IT spending in 2020.

Word is there from Gartner that the global spending on IT security is likely to grow by 8.7%, whereas the general IT spending would increase by just 3.2%. A majority of the security market would be service-based by 2020. It means that security-as-a-service models will soon be in greater demand. VARs who will have the availability to offer advanced security features like password protection and risk assessment will surely have the competitive gain.

THE EVER-INCREASING NEED FOR INFRASTRUCTURE ECOSYSTEMS AND INTEGRATIONS Since operations have shifted to digital solutions in almost all departments, businesses are embracing several distinct software to function different needs, from accounting software and CRMs to dedicated security providers. Such a dispersed environment needs to transform into seamless foundation businesses rely on. Those who provide the companies with greater value via handling integrations and communications between various pieces of software are most likely to be more sought after.

CONCLUSION Even though the VAR industry is on the path of becoming more and more competitive, if you are aware of your business strategy and along with that you have the support of a renowned value added reseller software, be rest assured that you are going to sail through. To make this happen, make sure the reseller management software has all the features and abilities along with the required support service to facilitate your needs and requirements.