The 2005 VAR 100

The focus shifts as companies consolidate and look overseas.

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Things have changed in the last year since Accounting Technology published its first VAR 100, ranking accounting software resellers based on their revenue. The top players are far more involved in international markets than a year ago, and they are growing. That growth came as some leaders from the 2004 list disappeared. Tectura, whose $150 million in 2004 revenue reflects pro forma figures, acquired Aston Business Solutions, which was No. 5 on last year's list. It had already purchased No. 40, Morrison Group, which had $5 million in sales for 2003, and No. 65, Sensible Solutions, with $3.5 million in sales for the same year.EPartners, the Irving, Texas-based company that had been the largest reseller in the United States, was also acquiring others. It gobbled up EYT, a Chantilly, Va.-based Solomon and Great Plains reseller that was No. 7, based on estimated revenue of $3.5 million. EYT had earlier purchased In2Gr8, which was No. 4 on last year's list with $4 million in revenue. Meanwhile, Exact Software purchased No. 86, the Treadstone Group, with its $2.5 million in revenue.

This year's totals reflect worldwide sales of resellers where possible because of the growing international operation of software VARs. Last year, ePartners opened a London office, while Tectura jumped into the European market in a big way with its purchase of Aston and Cosmo Consult, which had $26 million in annual sales. In early March, Altara opened an office in the U.K.

Another international player, Avanade, just made off with No. 34 En'tegrate, a Rolling Meadows, Ill.-based Axapta reseller had an estimated $6 million for its 2004 operations. Avanade, founded by Accenture and by Microsoft, which owns 49 percent of the New York-based consulting operation, will swallow En'tegrate into a 3,000-person operation level.

Partner Insights

One figure that will raise eyebrows are the numbers from Skyytek, a relatively new Miami-based company that sells NetSuite's online applications. Coming in at No. 11, the firm says it had $11 million in revenue and a staff of 12 for 2004. CEO Ray Tetlow says the numbers show the cumulative effect of subscription revenue. The impact of mounting subscription revenue is one that NetSuite executives say is an advantage for VARs using their model.

There have been some companies whose listings have been redefined. BDO has been replaced by Synergistic Software, the firm's software-reselling arm, which more clearly fits the VAR model. CPA organizations that remain on the list were asked to exclude results from outside the technology area and to report gross revenues.

Click here - The VAR 100

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