IT Channel Definitions

This glossary explains the meaning of key words and phrases that information technology (IT) and business professionals use when discussing IT channels and related software products. You can find additional definitions by visiting WhatIs.com or using the search box below.

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  • A

    Apple Authorized Service Provider (Apple AASP)

    An Apple Authorized Service Provider (AASP) is a business that provides repair services for Apple products.

  • application rationalization (AR)

    Application rationalization is the process of identifying which business applications should be kept, replaced, retired or consolidated across an organization to improve business operations.

  • B

    break/fix

    For IT services companies, break/fix is a method of providing IT support to customers. Services are generally fee-based and rely on a customer contacting the IT services company when repairs and upgrades are needed.

  • C

    channel conflict

    Channel conflict is a situation in which channel partners have to compete against one another or a vendor's internal sales department.

  • channel partner

    A channel partner is a person or organization that provides services or sells products on behalf of a software, hardware, networking or cloud services vendor. Value-added resellers (VARs), systems integrators (SIs), consultants, managed service providers (MSPs), original equipment manufacturers (OEMs), distributors and independent software vendors (ISVs) may all be called channel partners.

  • channel partner portal

    A channel partner portal is a web-based application that provides a vendor's established partners (usually distributors, resellers, service providers or other strategic partners) with access to deal registration, marketing resources, pricing and sales information for products and services, as well as technical details and support that are unavailable to other end users.

  • channel partner rules of engagement (ROE)

    Channel partner rules of engagement are a component of the sales relationship between an IT vendor and its channel partner community.

  • channel strategy

    A channel strategy is a vendor's plan for moving a product or a service through the chain of commerce to the end customer.

  • clean install

    A clean install is a software installation in which any previous version is eradicated.

  • cloud ecosystem

    A cloud ecosystem is a complex system of interdependent components that all work together to enable cloud services.

  • cloud provisioning

    Cloud provisioning is the allocation of a cloud provider's resources and services to a customer.

  • cloud service provider (cloud provider)

    A cloud service provider, or CSP, is a company that offers components of cloud computing -- typically, infrastructure as a service (IaaS), software as a service (SaaS) or platform as a service (PaaS).

  • cloud services

    Cloud services is an umbrella term that may refer to a variety of resources provided over the internet, or to professional services that support the deployment of such cloud-based resources.

  • CONUS (continental United States)

    Refers to the continental United States. To state that delivery is CONUS is to say that delivery could be anywhere in the continental U.S.

  • corporate account manager (CAM)

    In the channel, a corporate account manager (CAM) is responsible for maintaining the relationship between the clients of a value-added reseller (VAR) and the VAR. In this role, a CAM may be responsible for an entire portfolio of client relationships in multiple locations. Corporate account managers serve as the primary contact for the client, which emphasizes the need for both excellent customer skills and a thorough knowledge of the channel.

  • IT consultant

    A consultant is an experienced individual in a given field who provides expert advice for a fee. Consultants typically work as independent contractors and are hired on a short-term basis. A consultant may also be an employee at a consulting firm.

  • D

    data recovery agent (DRA)

    A data recovery agent (DRA) is a Microsoft Windows user account with the ability to decrypt data that was encrypted by other users.

  • deal registration

    Deal registration is a common feature of vendors' channel partner programs in which a channel partner, such as a value-added reseller (VAR), informs the vendor about a sales lead.

  • Defense Acquisition Regulatory Council (DARC)

    The Defense Acquisition Regulatory Council (DARC) is a group composed of representatives from each Military department, the Defense Logistics Agency, and the National Aeronautics and Space Administration... (Continued)

  • Defense Contract Management Agency (DCMA)

    The Defense Contract Management Agency (DCMA) is a component of the United States Department of Defense (DoD) that works with defense contractors to ensure government services and supplies are delivered on time, come at the expected cost and satisfy all performance requirements.

  • Dell Technologies Partner Program

    The Dell Technologies Partner Program is an international channel partner program that provides partners with business development, sales and marketing resources.

  • direct market reseller (DMR)

    A direct market reseller (DMR), also known as an e-tailer, is a company that sells directly to consumers online without operating storefront operations of any kind... (Continued)

  • distribution channel

    A distribution channel is the network of individuals and organizations involved in getting a product or service from the producer to the customer.

  • distributor agreement (distribution agreement)

    A distributor agreement, also known as a distribution agreement, is a contract between channel partners that stipulates the responsibilities of both parties.

  • F

    fair and reasonable price

    A fair and reasonable price is the price point for a good or service that is fair to both parties involved in the transaction.

  • Federal Acquisition Regulation (FAR)

    Federal Acquisition Regulation (FAR) is the body of laws that govern the U.S. Federal Government's procurement process. These laws are prepared, issued and maintained under the joint auspices of the Secretary of Defense, the Administrator of General Services Administration (GAO and the Administrator of the National Aeronautics and Space Administration (NASA). Responsibility for maintenance and revision of the FAR is vested jointly in the Defense Acquisition Regulatory Council (DARC) and the Civilian Agency Acquisition Council. (CAAC).

  • feedback loop

    A feedback loop is a system where some portion or all of the output produced by the system returns as input, effecting the succeeding processes of that system in some way.

  • freemium

    Freemium is a way of promoting services by offering the basic features at no cost, charging a premium only for supplemental features. The term, which is a combination of the words 'free' and 'premium,' was coined by Jarid Lukin of Alacra in 2006 after venture capitalist Fred Wilson came up with the idea... (Continued)

  • G

    go-to-market strategy (GTM strategy)

    A go-to-market strategy (GTM strategy) is an action plan that specifies how a company will reach target customers and achieve competitive advantage.

  • H

    hardware-as-a-service (in managed services)

    Hardware-as-a-service (HaaS) is a procurement model that is similar to leasing or licensing in which hardware that belongs to a managed service provider (MSP) is installed at a customer's site and a service level agreement (SLA) defines the responsibilities of both parties.

  • hosted services

    Hosted services are applications, IT infrastructure components or functions that organizations access from external service providers, typically through an internet connection.

  • I

    IBM (International Business Machines Corporation)

    IBM (International Business Machines Corporation) is a multinational technology company headquartered in Armonk, N.Y.

  • ISV (independent software vendor)

    An ISV (independent software vendor) makes and sells software products that run on one or more computer hardware or operating system (OS) platforms.

  • IT distributor

    An IT channel distributor is a business that acts as an intermediary between vendors and value-added resellers (VARs) or system integrators (SIs) in the distribution of software or hardware.

  • IT solution

    An information technology (IT) solution is a set of related software programs and/or services that are sold as a single package.

  • L

    line card

    A line card may be a modular electronic telecommunications switching component on a printed circuit board, or a printed brochure or document that contains the names, descriptions and products that are sold by a third party.

  • M

    managed hosting

    Managed hosting is an IT provisioning model in which a service provider leases dedicated servers and associated hardware to a single customer and manages those systems on the customer's behalf.

  • managed IT service

    A managed IT service is an information technology (IT) task provided by a third-party contractor and delivered to a customer.

  • managed security service provider (MSSP)

    A managed security service provider (MSSP) is an IT service provider that sells security services to businesses.

  • managed service provider (MSP)

    A managed service provider (MSP) is a third-party company that remotely manages a customer's information technology (IT) infrastructure and end-user systems.

  • market development funds (MDF)

    Market development funds (MDF) are a resource that a vendor grants to its indirect sales channel partners to help the channel with sales and marketing programs.

  • Microsoft Intune

    Microsoft Intune is a cloud-based unified endpoint management (UEM) tool that aims to help organizations manage the mobile devices employees use to access corporate data and applications, such as email.

  • monthly recurring revenue (MRR)

    Monthly recurring revenue (MRR) is income a company can reliably anticipate every 30 days and one of the key metrics for channel partner companies.

  • MSP platform (managed service provider platform)

    A managed service provider (MSP) platform is a computing framework used to deliver network-based services, applications, and equipment to enterprises, residences, or other service providers. A MSP platform allows an organization, IT consultant or VAR to remotely monitor servers, firewalls, Exchange servers, Active Directory Servers, routers or switches from a central location.

  • N

    not for resale (NFR)

    Not for resale (NFR) is a designation for products that vendors give to their channel partners for testing and educational purposes with the understanding that the channel partner will not resell those products to the end user.

  • O

    OEM (original equipment manufacturer)

    OEM, or original equipment manufacturer, is a broad term that describes a web of relationships among IT hardware vendors, hardware component makers, software vendors and channel partners such as resellers and distributors.

  • Oracle PartnerNetwork (OPN)

    Oracle PartnerNetwork, also known as OPN, is a channel partner program that provides resources and benefits for value-added resellers, independent software vendors and other businesses that want to collaborate with Oracle.

  • P

    partner

    A partner is a member in a partnership, an entity in which both the profits or losses of a business or other venture are shared between all members. Corporations favor partnerships because of a taxation structure that eliminates dividend taxes upon the profits of owners. (Continued)

  • partner account manager (PAM)

    A partner account manager is a job title within a vendor organization that uses channel partners to sell its products or services.

  • partner program

    A partner program, which may also be referred to as channel partner program or alliance program, is a business strategy that vendors develop to encourage others to work with the vendor and sell its products or services.

  • Prisma

    Prisma is a cloud security suite that provides four different services that use rule-based security policies and machine learning to protect cloud services. This suite can be used on Amazon Web Services (AWS), Azure, and Google Cloud Platforms.

  • professional services

    A professional service is an intangible product that a contractor or product vendor sells to help a customer manage a specific part of their business.

  • professional services automation (PSA)

    Professional services automation (PSA) is a type of software application suite that provides a service business with the functionality it needs to manage core business processes.

  • proxy hacking

    Proxy hacking is a cyber attack technique designed to supplant an authentic webpage in a search engine's index and search results pages to drive traffic to an imitation site.

  • R

    request for proposal (RFP)

    A request for proposal (RFP) is a document that an organization, often a government agency or large enterprise, posts to elicit a response -- a formal bid -- from potential vendors for a desired IT solution.

  • reseller

    In information technology, a reseller is a company that typically purchases IT products or services from a product manufacturer, distributor or service provider and then markets them to customers.

  • RMM software (remote monitoring and management software)

    RMM software (remote monitoring and management software) is a type of application that information technology (IT) service providers use to maintain their clients' IT infrastructure and systems.

  • S

    sales lead

    A sales lead is a potential sales contact, individual or organization that expresses an interest in your goods or services.

  • sales motion

    A sales motion is the particular sales method an organization uses to deliver a product or a service to its customers.

  • service-level agreement (SLA)

    A service-level agreement (SLA) is a contract between a service provider and its customers that documents what services the provider will furnish and defines the service standards the provider is obligated to meet.

  • service-level objective

    A service-level objective (SLO) is the part of a service-level agreement (SLA) that documents the key performance indicators (KPIs) the customer should expect from a provider. In addition to specifying details about the service being purchased, an SLO also documents what the consequences will be if SLOs are not achieved.

  • share of wallet (SOW) or wallet share

    Share of wallet (SOW) is a marketing metric used to calculate the percentage of a customer's spending for a type of product or service that goes to a particular company.

  • Small Disadvantaged Business (SDB)

    A Small Disadvantaged Business (SDB) is a small business that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals.

  • solution provider

    A solution provider is a vendor, service provider or value-added reseller (VAR) that comprehensively handles the project needs of their client from concept to installation through support.

  • solution selling

    Solution selling refers to the philosophy or practice of uncovering a customer's pain points and then providing products and services that address the underlying business problem.

  • statement of work (SOW)

    A statement of work (SOW), in project management, is a document in which a contracting officer or chief procurement officer (CPO) specifies the objectives and deliverables for a particular project or service contract.

  • systems integrator

    A systems integrator is an individual or business that builds computing systems for clients by combining hardware, software, networking and storage products from multiple vendors.

  • T

    tier 1 vendor

    A tier 1 vendor is one of the largest and most well known in its field -- often enjoying national or international recognition and acceptance...(Continued)

  • tier 2 vendor

    A tier 2 vendor is a smaller and less well-known provider as compared to a tier 1 vendor and is often also limited in its geographic coverage as well... (Continued)

  • TIN (Taxpayer Identification Number)

    A Taxpayer Identification Number (TIN), in the United States, is a unique nine-digit number for identifying an individual, business or other entity in tax returns and additional documents filed with the Internal Revenue Service (IRS).

  • turnkey solution provider

    A turnkey solution provider is a solution provider that offers limited consultation and one or more established product packages that allow only minimal configuration... (Continued)

  • V

    value-added reseller (VAR)

    A value-added reseller (VAR) is a company that resells software, hardware, and other products and services that provide value beyond the original order fulfillment.

  • vCIO (virtual CIO)

    A vCIO, or virtual CIO, is a contractor or company that serves as an organization's chief information officer.

  • vertical market

    A vertical market is made up of companies that offer goods and services to meet the needs of customers in a specific industry or niche market.

  • VMware Partner Network

    The VMware Partner Network is a global channel partner program with benefits and support to provide VMware's virtualization and cloud technology.

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