26 Apr Why ERP VARs Partner with Cloud Service Providers
A Value Added Reseller (VAR) in technology is just what it sounds like—a company that resells software, hardware or networking technology at a markup in exchange for their value-add. For example, Enterprise Resource Planning (ERP) software is developed by a vendor such as Sage or Microsoft. An ERP VAR resells the vendor’s products along with implementation, configuration and customization to tailor complex software to work for a specific user or industry.
Traditionally, VARs have been project-based businesses, delivering per-user licenses for software and implementation expertise. Often there is ongoing support after the initial project is complete, but this has historically not been the key focus of VARs. Cloud computing has changed this.
5 Reasons ERP VARs Partner with MSPs for Cloud
With the rise of cloud computing and Software-as-a-Service, many VARs have adapted their businesses to either sell SaaS-native solutions or add Managed Services to their offering.
“A Managed Cloud Service Provider partner allows them to focus on their core business and adapt to change more easily”
This transition can cause a lot of strain on the VAR, but a Managed Cloud Service Provider partner allows them to focus on their core business and adapt to change more easily. VARs may look to cloud MSPs to provide virtual desktop hosting and application hosting. Here are some of the reasons why VARs go this route.
1. Cloud Architecture Partner
With an MSP partner to focus completely on cloud architecture VARs know they are delivering high levels of cloud service to their valued clients. It also frees them from spending time and resources building cloud technology so they can focus their R&D on designing customizations to deliver higher value solutions for their software clients.
2. Service & Sales Partner
Similarly, customer service that is focused on software is not the same as service that is focused on cloud services. A VAR can help their software clients more confidently knowing their cloud partner is there to provide robust customer service around cloud.
3. Support Partner
Similarly, MSPs allows VARs to focus their talent and resources on support for their software solutions. And let’s face it, cloud services requires high-volume, 24/7 support. Many VARs are small shops without the resources to manage this, or simply don’t want to get into that end of the business.
4. Security Partner
With a cloud partner that makes secure cloud hosting the core part of its business model, VARs can rest easy knowing their customers’ data is supported by the highest industry standards for security and 24/7 monitoring.
5. Licensing Partner
Many VARs have licensing expertise for on-premise licensing, but often lack subscription licensing expertise. With the right MSP, software licensing is backed by people who have experience navigating subscription-based software licenses.
The MSP Partner Difference
While many managed cloud service providers offer a quick way to migrate to the cloud, an MSP Partner has deeper knowledge to help plan strategic solutions across their customer’s IT environment. MSP Partners often have additional expertise in the software they host, so the VAR gets a cloud partner as well as a software partner. This equates to better service to the end user.
Partnering with a Managed Cloud Services Provider allows a VAR to focus on their bread-and-butter business—building innovative software solutions to meet the needs of their core industry verticals. This allows more assurance that the software experts build the software and the cloud experts build the cloud architecture. With the right cloud provider, this is a win for the VAR and the customer.