VAR

“Well, at a time when consumer spending is down and most global marketplaces have declining growth rates, VAR's growth rate has doubled because our customers are getting more value and we're getting more efficient about providing it.”

“So, with an OA, being an OEM, you own your own code, you own what you create, but obviously you don't own the ERP platform Product. Ah, a value added reseller provides configuration and training, ah, and support on an ERP, but they don't generally write any or…”

“Typical VAR split is fifty-fifty up to that. It actually, a value-added reseller may only get 40% of the revenue. Whereas original equipment manufacturer can get, oh 70 to 80% depending on volumes.”

“I think the reason most are burned by them is just because they try to go after them too early. They're like little kids on a soccer field. They go where the ball is, and if you're just starting out or you're sub hundred million dollars, you're not the ball ye…”

“And the thing is they don't have the sales force to carry pre chasm products. They're good at distributing things where there's a known budget, but if you're doing something. Fundamentally new, there's no way that a VAR can actually pitch, educate the customer…”

“Microsoft currently is passing through all that revenue to the VARs. So Microsoft's not actually getting a margin on nimble. So the VARs are getting that margin, and so ultimately what's happening is that the VARs make the margin on the monthly current revenue…”

“About 20%.”