If you’ve spent any time exploring business technology, you’ve probably run into the acronyms OEM, VAR, and MSP. These are, of course, IT industry jargon, but, at the same time, they describe very important roles.
Original equipment manufacturers (OEMs) build the actual hardware or software. Value-added resellers (VARs) customize and resell that technology. Managed service providers (MSPs) step in to manage IT infrastructure and keep everything running smoothly.
Understanding how they differ can save you from a lot of confusion and help you choose the right kind of support for your business.
What is an OEM?
An OEM, or original equipment manufacturer, creates hardware or software that becomes the foundation of many business systems. When you buy servers, networking gear, or licensed software, the chances are high that an OEM built them. These companies design, test, and produce core technologies that power daily operations.
The global OEM electronics assembly market is massive, valued at roughly $1.8 trillion in cost of goods sold (COGS) as of 2025. Businesses often rely on OEMs for the assurance of quality and performance. An OEM does not usually sell only to end users but instead works with distributors, value-added resellers, and sometimes managed service providers.
The focus is on engineering and delivering the backbone of IT infrastructure. Without OEMs, there would be no base technology for the other players to build upon.
The Role of VARs
Value-added resellers (VARs) step in after OEMs. Their role is to take the technology made by OEMs and enhance it with services or customization.
Globally, the VARs software market, as of 2023, is worth $550 million. Of course, a VAR does not just sell hardware or software. They make it useful in a way that matches specific business needs. That might involve preloading software, integrating systems, or offering setup support.
VARs are critical because they bridge the space between raw technology and real-world application. They turn generic products into targeted tech solutions that businesses can rely on. For example, a business might need servers from an OEM but cannot use them without a tailored configuration. A VAR fills this gap by preparing the servers to match the company’s requirements.
Where MSPs Fit In
A $335.37 billion global market, managed service providers (MSPs) take things one step further. Rather than just delivering or customizing technology, they manage it over time.
As TD SYNNEX notes, MSPs offer a comprehensive range of managed IT services, which often include network monitoring and data backup. Their value lies in keeping the IT infrastructure running smoothly without requiring a company to handle it internally.
An MSP builds long-term partnerships with clients. They are not only concerned with installing systems but with ensuring continuous operation.
By outsourcing to managed service providers, businesses gain access to specialized knowledge while freeing their teams to focus on core work. MSPs are the steady presence that keeps technology reliable on a day-to-day basis.
Comparing OEMs, VARs, and MSPs
The three models serve different purposes, even though they often overlap in business relationships. OEMs focus on producing the technology itself. VARs package and tailor that technology into usable forms. MSPs oversee and maintain it through managed services.
An OEM creates a networking switch, a VAR installs and configures it for a specific office, and an MSP monitors and manages its performance. Each party plays a role in the chain of delivering tech solutions, but their responsibilities never look identical. Hence, businesses must carefully evaluate which type of partner fits their situation best.
Why These Differences Matter
Choosing between OEMs, VARs, and MSPs depends on the stage of your technology journey. A new enterprise setting up an IT infrastructure may first need OEM products.
When it comes time to adapt those products to fit business processes, value-added resellers become essential. Once the systems are in place, managed service providers step in to keep them running through managed IT services.
The distinctions matter because each role has different costs, expectations, and outcomes. Failing to understand the difference may lead to wasted resources or unmet goals.
For instance, hiring an MSP when what you really need is a VAR can cause delays and confusion. Being clear about who does what prevents overlap and helps you get the most from your investment.
Frequently Asked Questions (FAQs)
What is the key difference between OEMs and VARs?
OEMs design and produce original technology products, such as hardware or software. VARs purchase those products and enhance them with additional services, configurations, or integrations. The OEM provides the raw technology, while the VAR ensures that it matches specific business needs through customization and added value.
How are managed service providers different from value-added resellers?
Managed service providers focus on long-term management of IT systems, including monitoring, maintenance, and support. Value-added resellers, on the other hand, improve and configure OEM products before selling them. MSPs continue to support businesses daily, while VARs are primarily involved during setup or deployment stages.
Can a business work with OEMs, VARs, and MSPs at the same time?
Yes, and in many cases, they should. OEMs create the foundation technology, VARs adapt it to fit unique requirements, and MSPs ensure smooth operations. Working with all three can provide a complete cycle of support, from acquisition to customization to ongoing managed services.
The worlds of OEMs, VARs, and MSPs can look similar at first glance, but their roles are distinct. Together they form a chain that ensures businesses have the tools, configurations, and reliability they need.
Knowing the difference helps companies choose the right partners for every stage of their IT infrastructure journey.
