POS Solutions - Channel VAR vs ISV
Historically, POS solutions have been bought and sold through the channel. The POS channel of VAR’s (value-added re-sellers) has grown to the 1000’s in the USA alone due to the variety of vertical markets that exist in the merchant arena and the growing number of POS solution developers that support those verticals. The image below is provided by PointofSale.com and depicts the traditional POS solution business model.
In some cases, the end user can acquire POS solutions directly from an ISV (independent software vendor). However, in the POS industry, most software developers still focus exclusively on development and license their POS solutions to the channel VAR’s who provide the deployment, training and support to the end user. So, the question for the merchant becomes; what are the pros and cons of acquiring a POS solution from a VAR vs and ISV?
Here are a few questions to consider:
- Obviously, everyone involved in the transaction will turn a profit. Will I spend more on a POS solution if I purchase it from a VAR instead of buying direct from an ISV?
- Since a VAR doesn’t own and control the source code of the POS solution, will the VAR be able to support all of my needs?
- If my business model changes over time, will the VAR be able to support the functionality changes required in the POS solution?
- What happens if the POS VAR goes out of business and/or moves on to other ventures? Will the ISV behind the VAR offer me alternatives to support my POS solution?
Sometimes, the best fit for the merchant is to purchase a POS solution from a VAR instead of an ISV. Many VAR’s have decades of experience and success providing POS solutions to specific vertical markets. However, there are many other situations with circumstances that lead to an ISV being the best POS solution provider for the merchant. Often times, the merchant will save money by acquiring their POS solution from an ISV simply by eliminating the middle man.
The bottom line is that there are many points to consider when choosing the correct path in the selection process. Below, we have provided some free tools that we hope you find helpful in your POS solution selection process:
Click here for detailed information provided by PointofSale.com on selecting a POS VAR.
Click here to download a free guide with 10 things to consider while selecting a POS solution.
Other helpful resources include:
www.softwareadvice.com
www.possoftwareguide.com
www.gorspa.org