Collaboration is Key David J. Gosman, CEO, pcAmerica
The relationship between an Integrated Software Vendor (ISV) and Value Added Reseller (VAR) is the driving factor of successfully selling solutions to end users.
VARs are face to face with the changing needs of their clients, and work tirelessly to satisfy those needs through delivery of solutions consisting of software, hardware and additional services. ISVs develop the software aspect of the solution and respond to the needs of their VARs. Both parties are part of the same ecosystem that successfully and reliably delivers solutions to end users.
The world changes daily, and along with it changes the software needs of end users who constantly adapt to position themselves for success. A VAR's overall experience and intimate knowledge of their clients, combined with an ISV's relationships and compiled knowledge of several clients across the entire channel, should be combined and applied through partnership to four key areas for both parties to achieve long term success.
1.) Product Development. I've seen several occasions where an ISV designs a product based on what they think clients need, resulting in a solid software package that doesn't do what end users want it to do. A good ISV should not only conduct market research and keep up with the news, but also communicate with VARs and their respective end users to garner hands-on knowledge. Collaborating on ideas will ensure ISVs are developing the right features in the right way, enabling VARs to deploy a successful solution that addresses the needs of the end user.
2.) Marketing. ISVs have an excellent knowledge of the specific features and values of their system, and should make this information available in clear and concise marketing materials. VARs are typically more in tune to the specific geography or client type they are attempting to pursue. I've had countless experiences where our VARs have taught me how some features in our software can be used for something we didn't originally intend -- tips we can use to help them market, as well as enhance our own marketing, and share it with our entire VAR community.
3.) Sales Process. The VAR is the face to the end user, and without them, there wouldn't be a sale. ISVs can, however, lend assistance in various ways to help the VAR close a deal. Several potential clients, especially larger ones, need assurance that the VAR they want to buy from can leverage a relationship with the ISV, to solve future needs of technical support or software enhancements. We've even helped many of our VARs in direct presentations to end users, a tactic that has resulted in a great close rate.
4.) Service. As mentioned above, ISVs rely on their VARs to sell software. VARs, in turn, rely on the ISV to successfully help support the solution during and after deployment. VARs consistently rank support as the single most important aspect of an ISV when choosing which software product they sell. We've witnessed many situations where an end user will put pressure on a VAR to provide a solution fast, regardless of complexity. In order for an ISV to be successful with their VARs, they need to take on this urgency as their own, be hands-on and work together to provide a rapid solution.
ISVs and VARs have different responsibilities to achieve the same goals -- develop, market, sell and service a solution that meets or exceeds the requirements of an end user. I've spent a lot of hands-on time discussing what both parties need to contribute to these four key areas to meet that goal. Lack of collaboration leaves both parties fighting for survival. A strong partnership of mutual communication, understanding and commitment, is the recipe to ensure mutual success.
David J. Gosman is CEO of pcAmerica, a Pearl River, N.Y.-based ISV, which provides retail and restaurant point of sale software to an established VAR and distribution channel. For more information, David can be reached via email at: david@pcamerica.com.
The relationship between an Integrated Software Vendor (ISV) and Value Added Reseller (VAR) is the driving factor of successfully selling solutions to end users.
