What is a VAR (Value-Added Reseller)?

VAR Defined

VAR stands for "Value-Added Reseller." A VAR is a company that sells ERP software licenses on behalf of a software publisher like SAP, Microsoft, or Oracle, and then bundles that software with hands-on services such as configuration, implementation, training, and ongoing support. 

Rather than buying a license directly from the publisher and figuring out deployment on your own, a VAR packages the software with the expertise needed to actually get it running in your business.

Why Businesses Choose to Work With a VAR 

Buying software directly from a large publisher can often mean a generic, one-size-fits-all setup. Big software publishers are built for volume, so their default implementations aren't tailored to a specific industry or workflow. 

A VAR closes that gap. They purchase the software and any needed hardware, then add the "value" through pre-configuration, localized deployment, and user training. After go-live, most VARs stay involved with system monitoring, patching, and eventual upgrades or hardware refreshes.

Because a VAR handles the entire relationship, a business gets one point of contact for software, hardware, and support, instead of juggling multiple vendors.

VAR vs. Systems Integrator (SI): What's the Difference? 

VARs and SIs are often confused, and the two are sometimes distinguished only by billing rate. VAR rates commonly run $100–$185/hour, while large SI-level engagements can run $250–$325/hour or more. 

It is important to note, however, that the differences run deeper than price as they serve different needs:

• A VAR focuses on configuring and customizing a single software package, using pre-built industry templates to keep implementations fast and budgets predictable. VARs are typically the better fit for small to mid-sized businesses.
• A Systems Integrator (SI) designs and connects complex, multi-vendor environments for large organizations. SIs manage bigger risks, longer timelines, and custom-built connections between many different systems.

Many mid-market manufacturers actually use both: a VAR to configure and support the core ERP, and an SI to connect that ERP to legacy systems, logistics platforms, or EDI networks.

How a VAR Benefits Manufacturers 

Manufacturing has its own set of operational demands, and a specialized VAR is often built around exactly those needs:

• Production module configuration: setting up standard manufacturing modes, such as discrete, process, make-to-order, or mixed mode without a custom build from scratch
• Shop floor and IoT integration: connecting machines and production data directly into the ERP for real-time visibility
• Lot tracking and quality control: configuring traceability features required for regulated or quality-sensitive production
• Legacy and third-party connections: linking the ERP to older PLM systems, logistics platforms, or EDI networks already in use on the floor
• Faster, lower-risk deployment: using pre-built industry templates instead of custom development, which keeps both timelines and budgets predictable
• Lower long-term maintenance costs: modern VARs build customizations as isolated extensions rather than overwriting core system code, so platform updates and patches don't break existing workflows

Because manufacturing environments often combine legacy equipment with modern cloud ERP, a VAR's job is as much about bridging old and new systems as it is about the initial software rollout.

What to Look for When Choosing a VAR 

There's no single formula for picking the right implementation partner, but there are a few factors that do matter:

1. Industry experience – Look for a track record of live implementations in your specific vertical.
2. Implementation speed – Ask whether they use pre-built dashboards, roles, and workflows to accelerate go-live.
3. Integration readiness – Confirm they have experience with modern APIs and AI-driven tools.
4. Support responsiveness – Understand their service-level agreement, especially response times.
5. Pricing transparency – Make sure licensing, implementation, and any time-and-materials costs are clearly separated.
6. Customer satisfaction – Check third-party review sites for verified ratings from existing clients.

VAR Bottom Line 

A VAR exists to lower the total cost and risk of adopting new ERP software by combining procurement with tailored, industry-specific services. 

For most small and mid-sized businesses, working with a specialized VAR is the fastest way to get an ERP system that actually fits how the business operates, without paying for the scale of a large systems integrator you don't need.