Recently we have been discussing emerging trends in Microsoft Dynamics. Of these, one of the more popular ones is for businesses to join with a “Master VAR” (value added reseller) to help sell Dynamics and affiliate software. However, there are some downsides. While businesses that choose to integrate in this way maintain control of the company, they often lose their name in the process. Obviously, this can be a difficult pill to swallow. Established businesses will be hesitant to give up their unique identity to sell under a different title entirely. So, in what situations does it make sense to give up a name?
When The Field Is Convoluted
What do I mean by convoluted? Turning back to the Dynamics example, it might seem as though there are only so many varieties, so a business might choose the one that works best and move on. Companies are usually pretty aware of their business needs but rarely know their software needs. Therefore, if a small business owner calls a consultancy that specializes in Dynamics AX implementations, he is likely to be overwhelmed by the extraneous complexity of the product relative to his needs. Within a Master VAR ecosystem, however, that same customer could contact the Master VAR, who would supply them with the appropriate sub-VAR to meet their business needs. This breaks down the confusion and matches customers with businesses that are tailored to their niche, resulting in greater satisfaction and more money for everyone.
When The Home Environment Is Dry
Sometimes a well-equipped business is confounded by a lack of need in its immediate area, even if there is a great need for its services nationwide. This could be because of localized economic strain or simply a lack of sustainable customers in an area. However, this issue can be largely alleviated by joining a Master VAR. Essentially, these large business groups can spread over a massive area, exposing a business to a much larger customer base than previously possible. Because many implementations are done remotely, this can breathe life into a struggling business regardless of its immediate environment.
Obviously there are too many considerations regarding the value of a name to cover in one blog post. Both personal and business reasons may impact the eventual decision. However, if the choice is to join a Master VAR or struggle, businesses should realize that there is a very real advantage to joining a large group, particularly in the current Microsoft Dynamics environment. In many cases, it is better for both the company and the customer.