SOFTWARE-AS-A-SERVICE (SAAS) APPLICATIONS ARE becoming increasingly attractive to VARs looking to expand their technologies because it helps them address existing markets. It also helps expand their reach into new technologies and markets by adding new solutions to their line card. In the financial services industry, SaaS applications bring additional services such as credit card acceptance and remote check deposits to small companies.

SaaS applications aren't a "silver bullet" for VARs looking to increase their product offerings. As a reseller, SaaS programs provide less control over traditional managed hosting. Since the vendor controls the software, security and data, it makes it imperative that VARs choose the right vendor. SaaS applications should be bundled with complete service packages if the VAR is expected to succeed. The VAR shouldn't be just getting software, but software plus service. VARs need to know that the products they are selling are reliable, and their vendors will stand behind them with technical support and service. To make this expansion, VARs need to be discriminating about what to look for in a vendor program. Here are some guidelines on how to identify a sound "software plus services" reseller program aimed at SMBs:

Building blocks. Look for reseller programs that are utilizing a software model that helps VARs deliver their core products, bundle services and build brand awareness in the marketplace.

Market differentiator. Look for products that are market- leading and integrate service packages that give the VAR a competitive edge.

Choice. Look for software plus services instead of just software-as-a-service. If the service is limited, then the software is limited. The service offering needs to be an open model that can be tailored to fit the customer's unique needs.

Sales and marketing support. Look for a reseller program that offers plenty of support in selling and positioning the payment solution. VARs need collateral, presentation materials, sales script outlines and talking points on key features and benefits that they can cobrand and make their own.

Well-defined technical support. The service-level agreement should outline a clear path for system uptime, data ownership and support - including hours of support and turnaround time.

Partner support. Software vendors and service providers should participate in the sales process. For example, a software developer may offer a Web seminar on a new SMB payment solution. A great reseller program will allow the VAR to invite their SMB customers to participate and will provide pull-through of sales solutions. The service provider should have staff members who are trained on the products and that have awareness of the channel program so they can provide the right level of support for the SMB. Some service providers will also allow VARs to participate in their sales and marketing materials, building better VAR brand awareness.

Compelling incentives. VARs can always sell more product if the reseller program offers services that can be positioned as an added benefit.

Security and compliance. Understand that small businesses are facing increasing pressures and extensive fines if they don't remain compliant with new data security regulations such as the Payment Card Industry (PCI) Data Security Standards (DSS). While VARs aren't liable for violations of card association security regulations, customers who feel their security concerns are not being met will look elsewhere for payment solutions. Opening the discussion about card association security standards allows the VAR to proactively sell other services and emerging technologies, such as remote check deposit, contactless payment, and wireless services. VSR