InformationWeek SMB TechEncyclopedia

(Value Added Reseller) An organization that adds value to a system and resells it. For example, it could purchase a CPU and peripherals from different vendors, graphics software from another and package it all together as a specialized CAD system. Although VARs typically repackage products, they might also include programs they have developed themselves. The terms VAR and ISV are often used interchangeably. See OEM, ISV and systems integrator.