Computer Products, Value-Added Resellers Industry Terminology

Account-Based Marketing (ABM)

A targeted go-to-market strategy that focuses marketing and sales resources on a defined set of high-value accounts with personalized campaigns.

Running an ABM play for the top 50 healthcare systems; Aligning SDRs and AEs around named accounts; Building account-specific solution briefs and landing pages.

Advanced Replacement (Advance Exchange)

A warranty/RMA service model where a replacement unit is shipped to the customer before the defective item is returned, minimizing downtime.

Offering next-business-day advance exchange on switches; Using vendor programs that support advance replacement; Quoting advanced replacement as part of premium support.

API Integration

Connecting systems via Application Programming Interfaces to automate processes like product catalog sync, pricing, quoting, order status, and ticketing.

Integrating distributor APIs into CPQ for real-time pricing and availability; Syncing PSA/ERP with RMM alerts; Automating order tracking updates to the customer portal.

As-a-Service (XaaS)

Consumption or subscription-based delivery model for technology solutions (e.g., SaaS, HaaS, UCaaS), shifting spend from CapEx to OpEx and emphasizing recurring revenue.

Packaging workstations as HaaS; Selling UCaaS instead of PBX hardware; Bundling devices, software, and support into a monthly per-user fee.

Attach Rate

The percentage of primary products sold with additional items (services, warranties, accessories) attached.

Tracking extended warranty attach on laptops; Improving security software attach on firewall deals; Setting targets to lift services attach by 10%.

Backorder

An order status indicating items cannot be fulfilled immediately due to insufficient inventory; fulfillment occurs when stock becomes available.

Communicating revised ETAs for backordered SSDs; Splitting shipments to deliver in-stock items; Offering alternates to reduce backorder exposure.

Bill of Materials (BOM)

A structured list of parts, components, and quantities required to build a configuration or solution.

Creating a BOM for a 50-seat VDI deployment; Validating compatibility across BOM components; Using BOM import to speed CPQ.

Bundling

Packaging multiple products and/or services together at a combined price to increase value and simplify purchasing.

Bundling laptops with docking stations and AV support; Offering a security stack bundle (EDR, SIEM, MDR); Building bundles for specific verticals like retail POS.

Channel Conflict

Competition or friction between routes-to-market (e.g., vendor direct sales vs. partner, or partner vs. partner) over the same customer or opportunity.

Preventing conflict via deal registration; Escalating protection when a vendor team goes direct; Establishing clear rules of engagement.

Channel Incentives

Programs that motivate partner behavior, including rebates, SPIFs, market development funds, special pricing, and tier-based benefits.

Claiming back-end rebates on Q4 networking sales; Running a SPIF for security renewals; Using MDF to fund a webinar series.

Channel Partner

A company that sells, integrates, supports, or manages a vendor’s products and solutions within the indirect channel (e.g., VARs, MSPs, integrators, ISVs).

Recruiting new partners for a co-sell motion; Aligning services with a vendor’s partner program; Collaborating with an ISV on a joint solution.

Configure-Price-Quote (CPQ)

A process and toolset that enables accurate configuration, pricing, discounting, and quote generation for complex solutions.

Auto-validating server configs in CPQ; Pulling distributor availability into quotes; Enforcing margin floors and approval workflows.

Cost of Goods Sold (COGS)

Direct costs attributable to the products sold, including hardware, software licenses, and third-party services; used to calculate gross margin.

Reducing COGS via distributor rebates; Separating service labor from COGS in reporting; Analyzing COGS by vendor to optimize mix.

Customer Success

A proactive post-sale discipline focused on adoption, value realization, renewals, and expansion to maximize customer lifetime value.

QBRs to drive adoption of EDR features; Playbooks to improve renewal rates; Health scoring to prioritize at-risk accounts.

Deal Registration

A vendor program process where a partner claims an opportunity to secure price protection, support, and reduced channel conflict.

Registering a 500-seat network refresh; Gaining special pricing after approval; Using registration status to defend an opportunity.

Dropship

A fulfillment method in which the distributor or manufacturer ships goods directly to the end customer on behalf of the reseller.

Setting up blind dropship with branded packing slips; Choosing dropship to meet tight deadlines; Avoiding double freight by shipping direct.

Endpoint Detection and Response (EDR)

Security technology that monitors endpoints to detect, investigate, and respond to threats in real time.

Proposing EDR as part of a cyber hygiene bundle; Integrating EDR alerts into the SOC; Replacing legacy AV with an EDR platform.

End-of-Life/End-of-Support (EOL/EOSL)

Vendor lifecycle milestones when a product is no longer sold (EOL) and later no longer supported (EOSL), triggering refresh or maintenance decisions.

Scheduling firewall refreshes before EOSL; Offering TPM for post-EOSL hardware; Using EOL notices to drive pipeline.

Enterprise Agreement (EA)

A multi-year, volume-based licensing contract that provides standardized terms, discounts, and centralized management across an enterprise.

Migrating to a vendor’s EA with true-ups; Bundling security and collaboration in one EA; Managing co-termination for simplicity.

Gross Margin

Revenue minus COGS, often expressed as a percentage; a key profitability metric for deals, lines of business, and the whole firm.

Targeting 18% blended margin on hardware; Protecting services margin in CPQ; Reporting margin by rep and vendor.

Hardware as a Service (HaaS)

A model where customers subscribe to hardware bundled with services (deployment, support, lifecycle), paying a recurring fee instead of purchasing outright.

Offering laptops as HaaS at a per-user monthly rate; Including advance exchange and DaaS analytics; Using HaaS to shift spend to OpEx.

Hyperconverged Infrastructure (HCI)

A software-defined architecture that tightly integrates compute, storage, and networking with unified management.

Proposing HCI to replace aging SANs; Running a POC comparing HCI nodes; Quoting scale-out capacity increments.

Inside Sales

Sales roles that primarily sell via phone, email, and digital channels; often include SDR/BDR and mid-market AE motions.

Inside team qualifying inbound leads; Coordinating demos and discovery; Routing enterprise prospects to field reps.

Integration Services

Professional services that connect systems, migrate data, and configure solutions so components work together as a cohesive stack.

Integrating POS with inventory and ERP; Tying identity management to M365; Scripting API connectors for ticketing.

IT Asset Disposition (ITAD)

The secure, environmentally responsible process of decommissioning, wiping, remarketing, or recycling IT assets.

Providing serialized certificates of destruction; Monetizing buyback on retired laptops; Onsite data wipe before removal.

Just-in-Time (JIT) Inventory

An inventory strategy that minimizes on-hand stock by aligning deliveries closely with demand to reduce carrying costs and obsolescence.

Using JIT with VMI for top-moving SKUs; Coordinating JIT for project-based kits; Mitigating JIT risks with safety stock.

Kitting

Assembling multiple SKUs into a single package with labeling, imaging, and accessories for streamlined deployment.

Preloading images in a laptop kit; Building site-specific network kits; Applying asset tags during kitting.

Lead Time

The duration from order placement to delivery, affected by production, logistics, and configuration steps.

Quoting extended lead times for GPUs; Splitting POs to meet milestone dates; Using alternates to reduce lead time risk.

Lifecycle Management

End-to-end governance of assets and solutions from planning and procurement through deployment, maintenance, and retirement.

Establishing 3–5 year refresh cycles; Tracking warranty and EOSL dates; Budgeting TCO over the lifecycle.

Managed Service Provider (MSP)

A partner that delivers ongoing, proactive management of IT systems under subscription or retainer models.

24x7 monitoring via RMM; Offering managed backup and DR; Converting break-fix clients to MSP contracts.

Market Development Funds (MDF)

Vendor-provided funds to support partner marketing activities that drive pipeline and revenue.

Claiming MDF for a regional roadshow; Co-branded ads for a product launch; Reporting ROI to secure future MDF.

Minimum Advertised Price (MAP)

The lowest price a reseller is allowed to publicly advertise for a product, set by the manufacturer.

Ensuring online listings comply with MAP; Using promo codes to discount without violating MAP; Auditing marketplace sellers for MAP adherence.

Multicloud

A strategy of using services from multiple public or private cloud providers for resilience, performance, or cost optimization.

Splitting workloads across AWS and Azure; Selling backup to a secondary cloud; Managing egress costs in a multicloud design.

Net Terms

Payment terms that specify when the invoice is due (e.g., Net 30, Net 45), impacting cash flow and credit risk.

Extending Net 45 to strategic accounts; Offering 2/10 Net 30 for early payment; Aligning vendor and customer terms to avoid gaps.

Opex vs Capex

Operating expenditures (recurring expenses) versus capital expenditures (long-term asset purchases); influences buying models and budgeting.

Positioning XaaS to shift to OpEx; Structuring leases to reduce CapEx; CFO prefers OpEx for predictability.

Original Equipment Manufacturer (OEM)

The company that designs and produces hardware (and sometimes software) sold directly or through partners; also denotes special licensing terms.

Registering an OEM-led server deal; Understanding OEM vs retail licensing; Following OEM warranty processes.

Partner Relationship Management (PRM)

Processes and platforms for onboarding, enabling, and managing partners, including portals, training, deal reg, and incentives.

Launching a new PRM portal; Tracking certifications and competencies; Automating co-op claims in PRM.

Point-of-Sale (POS) System

Hardware and software used to process retail transactions, including terminals, scanners, printers, and inventory integration.

Rolling out POS kits to 300 stores; Integrating POS with ERP and e-commerce; Adding payment security to POS upgrades.

Procurement

The set of activities to source, evaluate, negotiate, and purchase goods and services.

Running competitive bids across distributors; Negotiating freight terms and SLAs; Standardizing vendors to improve pricing.

Proof of Concept (POC)

A limited-scope evaluation to validate technical feasibility and business value before full deployment.

30-day EDR POC with success criteria; POC lab for HCI performance; Customer-funded POC credited to purchase.

Quote-to-Cash (Q2C)

The end-to-end process from configuring and quoting through order, fulfillment, invoicing, revenue recognition, and renewals.

Mapping Q2C in the PSA/ERP; Reducing quote-to-order cycle time; Automating renewals in Q2C.

Remote Monitoring and Management (RMM)

Tools and processes used by MSPs to monitor, patch, and manage endpoints and infrastructure remotely.

Deploying RMM agents during onboarding; Automating patch windows; Triggering tickets from RMM alerts.

Request for Proposal (RFP)

A formal procurement document inviting vendors or partners to propose solutions under defined requirements and evaluation criteria.

Responding to an RFP for statewide Wi-Fi; Hosting an RFP Q&A session; Aligning RFP responses to scoring rubrics.

Return Merchandise Authorization (RMA)

The approval and process required to return defective or incorrect products to the vendor or distributor.

Issuing an RMA for DOA servers; Coordinating RMA shipping labels; Tracking credit after RMA receipt.

Service Level Agreement (SLA)

A contractual commitment defining service performance metrics (e.g., uptime, response time) and remedies for non-compliance.

99.9% uptime SLA for UCaaS; 1-hour P1 response SLA in managed services; SLA credits for missed targets.

Stock Keeping Unit (SKU)

A unique identifier for an individual product or service, used for cataloging, pricing, and inventory tracking.

Normalizing vendor SKUs across distributors; Mapping SKUs to bundles in CPQ; Decommissioning obsolete SKUs post-EOL.

Total Cost of Ownership (TCO)

The full cost of acquiring, operating, supporting, and disposing of a solution over its lifecycle.

Comparing on-prem vs cloud TCO; Including power, cooling, and staffing in TCO; Using TCO to justify refresh timing.

Value-Added Distributor (VAD)

A distributor that provides additional services (credit, configuration, training, integration, logistics) beyond basic product fulfillment.

Using VAD integration labs for staging; Leveraging VAD credit lines for large deals; Enrolling in a VAD-led enablement program.

Value-Added Reseller (VAR)

A reseller that bundles hardware, software, and services to deliver complete solutions and business outcomes.

Acting as the prime on a multi-vendor project; Adding deployment and support to OEM gear; Building vertical-specific solutions.

Vendor Managed Inventory (VMI)

An arrangement where the supplier monitors and replenishes the customer’s inventory levels to agreed thresholds.

Setting min/max for top movers; VMI with consignment stock at a staging facility; Reducing stockouts with VMI dashboards.