Future Proof Your Reseller Business When POS Providers Go to the Cloud

A value-added reseller's (VAR) job isn't easy. Their biggest fear is when solutions providers sunset products and force VARs to offer cloud solutions.

That leaves resellers in the dark because the POS provider controls future service and support opportunities with remote support, not the local expert who is there for the merchant when they need them.

Matthew Dye, Director of Sales for Total Touch Point of Sale at Electronic Merchant Systems, took some time to answer questions about how a VAR can fill the void left by disappearing products and profit opportunities and keep their hard-earned reputations intact.

Q: What should a VAR look for to replace a solutions provider who has sunset their go-to product?

Dye: Start by looking for a similar product that would be popular with your existing target market (such as bars, restaurants, and nightclubs). If the company has a parent company that is a processing platform, confirm that the solutions provider has retained the original coding experts that created that POS system. Be certain the POS software allows for payment processor neutrality and only incentivizes resellers to consider processing with the parent company via the value and competitive pricing/profitability they bring their resellers.

Q: VARs are being forced to use cloud-only-based solutions. Is cloud necessary? What alternative solutions can a VAR consider?

Dye: Cloud-based POS systems are not necessary but can be an asset. However, server-based systems are much more secure.

If it's a hybrid restaurant management system like Total Touch POS utilizing the cloud for certain functions, they usually outperform its cloud-based competition. Another feature that should be considered is processor and/or internet service provider failure. Redundant ISP or hot spot backups are expensive but can’t provide backup when the processor goes down. With server-based store and forward capabilities, your merchant will never go down.

How much consideration should a VAR place on customer support when choosing a new solution?

Dye: This is one of the most crucial issues. I highly recommend that you call their support to see if it’s U.S. based support, and have the expertise to solve your problems.

Q: Regardless of the solution, security is paramount. Are the alternative solutions you've mentioned secure?

Dye: We’re all aware of all the internet breaches and backdoors and that the hackers and crackers keep getting more and more talented. At the same time, server-based systems require those same hackers to have admin access to that specific back-office server to perform any breach. Server-based platforms are much more secure.