@pfetterman I am surprised you are getting traction on implementation partners that are happy to just get revenue from just services. This creates little or no equity value in these companies generally since there is so difined recurring revenue stream - so I want to bet they are very small outfits and question their commitment level.
For a VAR to survive - they need both the license recurring revenue as well as the services - the cost of sale is high in SaaS compared on a $ by $ basis to on-prem revenue - which is why both is needed to make the business sustainable and worth anything. Otherwise you are only as good as your last project.
We (since inception) are a SaaS pure-play and the economics for a VAR is definitely there since we have been profitable since inception - but the methods of selling and deplolyment are completely different to on-prem.
One other opportunity a VAR may have is to enhance to core ERP product by developing an addon to that product for a macro and/or micro vertical and/or horizontal solution. But in most cases where this is successful ties in to if they are allowed to market it as a OEM product (better chance of success) versus a product thats marketed as a standalone add-on (rarely succeeds).
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