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MICROSOFT SETS MASTER VAR RULES

Jeff EdwardsBusinesses that want to be named Master VARs by Microsoft must have a minimum of $1 million operating capital and at least $500,000 in gross license revenue in the previous 12 months. Those are some of the terms spelled out last week in a blog post by Jeff Edwards, director of channel strategy for Microsoft Business Solutions.

Microsoft is getting ready to approve Master VARs and these standards apply to organizations that want to work with 30 to 50 dealers each in order to give smaller organizations the opportunity to stay in the Microsoft channel. Successful candidates for MasterVARdom also must have at least 90 percent of clients renewing their Business Ready Enhancement Plans. With the new program, smaller resellers would become Sales Affiliates of Master VARs which would maintain their independence, although not their brand. Four Master VARs will reportedly be chosen. Edwards post also noted that, "This program is the only channel collaboration model that is officially endorsed by Microsoft and it is currently only available in the United States." Presumably, that is yet another warning that Microsoft does not approve of buying clubs in which VARs collaborate simply for greater margin.
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