Providing hardware is no longer enough for a VAR to maintain and grow profitability — hardware is cheap(er) and add-on services are where the wider margins stretch out and wait. But networking and security solutions specialist ZyXEL has developed a cloud-based service level agreement (SLA) and cloud-based licensing system where VARs can easily purchase licenses and SLAs and then resell them.

To access the portal, VARs click on the 'Security Licenses' tab on each product page. License keys are delivered through the checkout process and sent via e-mail, but VARs first must register their security products on the portal before a discount is applied to the service license.

Steven Joe, executive vice president of channel business for ZyXEL Americas, explained that as long as a VAR registers its end user customer, ZyXEL will offer service renewals and new licenses for up to three years to boost reseller revenues and reduce the workload. In other words, if you register that customer, that customer is yours, and Zyxel provides the back end.

“It has to be easy, user-friendly and online. By being online, we can provide that solution to all our VARs and the ones we want to sign,” Joe said. “This is based on the needs of the VAR. It’s a service to help them maintain and grow their profitability.”

ZyXEL also recently launched a trade-in program for SonicWALL solution providers who switch to ZyXEL. According to the company, participating partners also will be inducted into ZyXEL’s Partner Program at the top Diamond level. Eligible SonicWALL models include: TZ100, TZ100 Wireless, TZ200, TZ210, NSA2400, NSA3500 and NSA4500.