As you’re evaluating ERP systems, you’re probably thinking about who you should be partnering with. While partnering with an ERP selection consultant is a given, you’re not sure what role a value added reseller (VAR) or system integrator (SI) might play.
Today, we’re breaking down the system integrator vs value added reseller conundrum so you can decide what experts you want on your team.
What is a VAR?
A value added reseller is a company that resells software, hardware, and other technology products. VARs purchase these products from manufacturers or distributors, customize them, and then resell them at a markup.
The value that VARs add comes from their ability to customize and configure a product to meet specific needs.
For example, if you’re looking to purchase a new ERP system, you might work with a VAR to select the right software and hardware components. Then, the VAR can configure them to meet your business needs.
The VAR might also provide training and support services to ensure you’re able to use the system effectively.
VARs often specialize in a particular area of technology, such as networking, security, or cloud computing. This specialization allows them to stay up-to-date with the latest developments in their field and provide you in-depth product knowledge during implementation.
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What is a System Integrator?
A system integrator is a company that specializes in integrating different technologies and systems. SIs offer a range of services related to system integration, including planning, design, implementation, and maintenance.
SIs typically work with clients who have complex IT environments, and who need help bringing together different software and hardware components into a cohesive whole.
For example, if you’re a large enterprise with many disparate systems and applications, you might work with an SI to design and implement a custom solution that meets your needs. The SI would work with your IT team to identify the components that need to be integrated and then develop a plan to connect them.
SIs typically have expertise in a wide range of technologies, including networking, databases, programming languages, and more. They also have experience working with various vendors and products and can help you select the right software.
System Integrator vs Value Added Reseller: Which One is Right for Your Business?
Your decision to work with a system integrator vs a value added reseller will depend on your specific business needs and the type of technology solutions you require. Here are some factors to consider:
1. The Complexity of Your IT Environment
If you have a complex IT environment with internal and external applications that need to speak to each other, an SI may be the better choice. SIs typically work with mid to large-sized organizations that require custom solutions, while VARs typically work with small and medium-sized businesses.
In our experience, system integrators provide more than simple configuration changes – they address complex business scenarios with customizations or integrations.
2. Your Budget
VARs may be a more cost-effective option if you have a limited budget. Since they primarily sell technology products, they may be able to offer competitive pricing.
In addition, VARs excel at keeping projects on budget and on schedule, which is vital for smaller organizations.
For instance, a VAR can transition a small company from QuickBooks to a complex solution while staying within the company’s limited budget.
3. Your Need for Ongoing Support
If you need ongoing support for your technology solutions, an SI may be the better choice. SIs typically offer a range of services, including maintenance and support, to ensure your systems continue to run smoothly.
For example, system integrators can provide support for future phases of your implementation, after you’ve implemented your mission-critical business requirements. One of our recent clients added integrations and portals after go-live with the help of a system integrator.
Why Not Use Both Experts?
System integrators and value added resellers play important roles in digital transformation projects. In fact, many businesses work with both types of partners throughout their projects. A business might work with a VAR to purchase and customize a product and then engage an SI to integrate that product with their existing IT environment. This approach allows a business to access the expertise they need from multiple partners, while maintaining control over their overall digital strategy.
A recent manufacturing client had VARs focus on configuration updates while the SI focused on integration and customization. Meanwhile, the Panorama Consulting team brought project management and organizational change management expertise to provide further risk reduction.
Ultimately, the right partners will not only help you achieve your technology goals but also act as strategic allies in driving business success. The same is true of ERP implementation consultants – these experts can work with a value added reseller or system integrator to keep your project on budget, on time, and on target to realizing expected benefits.
Contact Panorama’s team below for a free ERP consultation.
