Tue. May. 27, 2008
Q: Why choose Dell?
A: Because our Partner Direct program is designed based on partner feedback. Partners like the advantages the direct model can provide—single point of accountability with the manufacturer, custom factory configuration, and delivery options—because it helps increase profitability for them. We also make doing business with Dell easy for our partners with a dedicated partner support, e-commerce and an online partner portal and resource center. Finally, we provide flexible financing options to meet the working capital needs of our partners. All of this direct from Dell to the partner.
Q. You’ve been in this role for eight months now… what can our partners expect over the next eight months?
A: We will continue to listen to our partners and expand our program and benefits based on partner feedback. We are adding a new desktop desktop/remote management capability, powered by Everdream, to our managed services certification path. We expect to expand the program to Mexico this fall. We also plan to add new certification practice areas to PartnerDirect, giving our partners more options to grow both their businesses and their relationship with Dell.
Q: You talk to partners daily. What are they telling you?
A: What I am seeing is that most of the solution providers have really evolved their businesses. They have gone from just reselling hardware to becoming their customers’ IT department. Solution providers now have a different perspective to servicing their customers. As the IT department, solution providers care more about how utilizing Dell can eliminate cost and improve up-time for their customers. Service and support from their vendor is vital. Partners want to simplify IT for their customers, and this is Dell’s value proposition.
Q: Bloggers such as Josh Clifford have questioned Dell’s protection of the channel while building out our direct market. What peace of mind can you offer them?
A: When we launched PartnerDirect on December 5, it included deal registration for our registered partners. Since that time, we have approved over $200M in deals with our partners. Eighty-two percent of the deals submitted by partners through deal registration have been approved. With registered deals, we work very closely with the partner to ensure they own the deal and we collectively win the business for Dell through the partner who invested and brought the deal to us.
Q: HP & IBM have publicly stated that they plan to satisfy their mid-market objective almost uniquely through business partners. Dell already has a direct business that targets the mid-market. Is PartnerDirect targeting the mid-market, and if you are, how are you balancing PartnerDirect's approach against that of Dell's direct SMB/mid-market approach?
A: This is an example of providing the customer choice. We have partners that participate with Dell in SMB/mid-market. Many customers prefer to work with Dell directly, while others prefer to utilize a channel. The best way to balance that is to have an integrated approach with multiple routes-to-market. We want the customer to have choice, and we want them to choose Dell. Having a multi-pronged strategy for doing business with Dell is the best way to achieve this goal.
Q: What do you believe is the biggest competitive advantage VARs get from Dell's Managed Services certification? From Dell’s Enterprise Architecture certification?
A: First, let me state that managed services is a growing trend in the channel, and that Dell is the only Fortune 100 technology company to offer a formal managed services certification path for partners. Since our platform is hosted in a Dell data center and Dell is responsible for its performance and availability, we eliminate many of the costs and risks associated with legacy managed services platforms. In the future, Dell will also deliver MSPs new sources of managed service revenues through MessageOne and other components that will be made available to partners in a “white-box” version they can brand as their own.
In terms of Enterprise Architecture—Ease of doing business and competitive storage products are reasons partners want to certify with Dell. Partners also want to invest in our solutions such as storage, data centers, virtualization, security or power and cooling. PartnerDirect provides enhanced financing options, increased access to deal registration, deeper discounts on products and services associate with approved deal registration. We have dedicated field demand generation activities that are available for partners to help them as well as reduced prices for demo equipment.
Q: How are you demonstrating that you are listening to partners and acting on their feedback?
A: I think the ultimate evidence of listening to and acting on partner feedback is PartnerDirect. We built this program on partner feedback. Based on feedback from thousands of solution providers, we developed new features for channel partners including a partner portal—www.dell.com/partner—partner logos and marketing materials, 100-percent dedicated sales and customer care, certification paths and training, credit options, and deal registration serviced by Salesforce.com partner relationship management tool. Going forward, our commitment is to continue to listen and make changes as needed to meet the needs of our partners.
Q: Greg, do you have any closing thoughts you would like to share with our Channel Community?
A: We’ve taken the first steps on what promises to be an exciting journey. Step-by-step, we are building a relationship with the channel. We are committed to listening to our partners and evolving our program and benefits based on their feedback. Success will take time, and we appreciate the support we have received from the channel thus far. I’m proud of what we have accomplished to date and look forward to continuing to build a world-class partner program.