FUTURE
TECHNOLOGY
Keeping a finger on
the pulse for achieving
successful channel
leadership
I
ntelligent Tech Channels spoke to Avinash
Advani, CEO at Spire Solutions, and K.S.
Parag, Managing Director, FVC, about the
true significance of value-added resellers
(VAR) and value-added distributors (VAD) in
the channel.
The key requirements of being a
successful VAR/VAD today
Avinash Advani
The VA in VAR and VAD means ‘value-added’,
so the success of a VAR/VAD is absolutely
linked to the ability of the partner to provide
the maximum value to its ecosystem, for
example, its vendors and customers.
Those VARs/VADs that can differentiate
themselves and grow profitability are usually
the ones that offer unique services. These
services are ones which require innovative
strategic thinking as well as investment in
both resources and training.
But it all starts with focus and technical
excellence. The ‘Jack-of-all-trades, master-of-
none’ cannot survive in today’s competitive
32
market. It is fundamental to have a strict
focus so that a VAR/VAD can be recognised
and reputed as a domain expert, be it a
specific service offering, a technology area,
a vertical, or a market segment. Developing
expertise then comes from achieving
technical excellence.
In addition, VARs/VADs need to become
thought leaders by keeping their finger on
the pulse of the technology industry and
ensuring that their portfolio includes next-
generation products and services that are
emerging, as well as those that are spurring
market demand.
Furthermore, VARs/VADs need to be
agile and flexible by maintaining pace with
industry trends and paradigm shifts, such
as Digital Transformation, cloud adoption,
Artificial Intelligence (AI), automation, IoT,
etc. Accordingly, corporate positioning and
portfolio offerings need to be adapted to
avoid becoming stagnant.
Also, the point product sale is fading
as product margins shrink and customers
look to outsource through long-term
vi
na
sh
Experts discuss the challenges of remaining competitive as a VAR/
VAD in the channel and the future trends they predict will shape
operations of VARs/VADs.
Ad
van
i,
CEO
at S
pire Solutions
partnerships. Therefore, VARs/VADs must
begin the transition to managed services to
ensure they can sustain both profitability
and customer satisfaction.
Lastly, effective cashflow management
is critical for the success of a VAR/
VAD in today’s market. It is important
to consistently demonstrate payment
performance so that effective credit terms
are in place with suppliers, enabling VARs/
VADs to bridge the gap between AP and AR.
VARs/VADs must
begin the transition to
managed services to
ensure they can sustain
both profitability and
customer satisfaction.