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The Roll-Up Becomes the Channel
Evergreen Services Group’s acquisition of Datel, the UK’s largest Sage partner, highlights an accelerating trend of VAR consolidation that echoes the old Master VAR model.
Through its Pine Services subsidiary, Evergreen acquires large, healthy VARs and increasingly negotiates directly with ISVs, bypassing publishers and effectively becoming the channel itself. The underlying driver is recurring ISV subscription revenue: scale gives consolidated VARs the leverage to negotiate their own cut directly with ISVs, which is larger than what most could expect on their own accord.
— From this week’s editorial meeting. Not for attribution.