Glosary
VAR: A value-added reseller (VAR)
is a company that adds some feature(s) to an existing product(s),
then resells it (usually to end-users) as an integrated product or
complete "turn-key" solution. This practice is common in the
electronics industry, where, for example, a software application
might be added to existing hardware. This value can come from
professional services such as integrating, customizing, consulting,
training and implementation. The value can also be added by
developing a specific application for the product designed for the
customer's needs which is then resold as a new package.
SI: In our context the system
integrator is very similar to a VAR but has more resources, aims to
large projects and has a global presence. The SI specializes
in bringing together component subsystems into a whole and ensuring
that those subsystems function together, a practice known as System
Integration. In the biometric industry system integrators
integrate multiple systems for inputting, processing, interpreting,
storing, and categorizing personal identification data.
OEM: An original equipment
manufacturer, or OEM is typically a company that uses a component
made by a second company in its own product, or sells the product of
the second company under its own brand. The specific meaning of the
term varies in different contexts. In the biometrics industry
when a company licenses products or components from another company
and sells the products or components with the purchasing company's
name or logo on them (usually, but not always as part of a product),
the company that resells the product is called the OEM. For
example, when a mobile device manufacturer purchases finger scanners
for their device, the device manufacturer sells the finger scanner to the end user
via sales of their mobile device, and the mobile device manufacturer
is called the OEM in relation to the maker of the finger scanner.
End user: Economics and
commerce define an end-user as the person who uses a product. The
end-user or consumer may differ from the person who purchases the
product. For instance, a zookeeper - the customer - might purchase
elephant food for an end-user: the elephant. If the VAR/SI is
the purchaser, most of the times it will deploy a turn key project to the end
user that will include hardware, software and professional services.
The VAR/SI will support the end user during the life of the project.
Agent: Typically sells direct on
behalf of the vendor. An agent does not buy from the vendor
and never takes ownership of the goods.
Sometimes will partner with an SI or local VAR to complete the turn
key project being offered to the end user. In this scenario the
agent provides most value selling the complete solution to the end user,
while the SI
or VAR deploy and support the project.
Distributor: A distributor (also
called wholesaler) sells to VARs if it is more efficient and
economic for the vendor. The distributor must not compete with
the VAR and sell to the VAR customers, the end users. Because
of this potential conflict and specially in the in the biometrics
industry, VARs sometimes resist having to buy from distributors, and
prefer to buy more economically from the vendor. If a
distributor sells to end users it must assume responsibility for
support, therefore acting as a VAR.