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There were not many top value-added resellers of accounting and ERP software that managed to increase their revenues over the past 12 months, but for the select few that overcame the volatile economic climate, the reasons behind it were rooted in such strategies as mergers, diversification of product lines, and expansion into new markets.
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Historically, VARs had the luxury of two easily defined and lucrative revenue streams: a decent slice of the retail selling price, up to 40%, of the solution on offer plus consulting and implementation fees based on time and materials. Regardless of economic conditions, the fundamentals of the model have not changed. Cloud computing solutions upend that model.
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