How Cloud Computing Could Destroy VARs

A typical VAR is used to frequently selling large ticket items which may not all have the largest margins but in volume can throw off a good amount of cash and profit. As a result, many resellers have developed a business model with commensurate expenses and as the market shifts to cloud-based services with OPEX (News – Alert) budgets being used instead of CAPEX, customers are reducing their immediate spend and spreading their dollars over months if not years.

And the typical VAR is not ready for the shift. This is what was discussed in a recent conversation at TMC (News – Alert) headquarters in Norwalk, CT with George Fandos, Vice President of Global Data Center for Westcon Group.

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