Q&A with Greg Davis, Vice President & General Manager, Americas Channel Group

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.

Comments  Comment RSS Feed

Colin said:

Pretty much everything you said, Greg, is what partners want to hear, which is good. But I do have two questions: When you talk about selling to SMBs both directly and through the channel, how do you expect partners to compete with Dell's direct team? And what incentives do customers have to go through partners instead of Dell directly?

I also have a question on something you didn't mention here. You and Amie and everyone else in Dell's channel program do come across as being genuinely channel-friendly. But recently, for example, Dell put out a major announcement about virtualization that stressed direct sales and didn't mention partners at all. What are you doing to help everyone at Dell project a more unified channel-friendly approach?

Greg Davis said:

Colin,

 Partners have the ability to extend their value to SMB customers through a number of ways.  These partners can leverage Deal Registration,  additional discounting with the PartnerDirect portal, channel-specific finance vehicles, PartnerDirect logos, Certification paths toward specific solutions, additional tech support options and more.  A big value add that Partners can provide is their local presence with SMB customers while still leveraging any products and/or services available for resell from Dell. 

Overall Dell is working on adjusting the culture to be more channel-friendly.  We are working on this through process (ex. Deal Registration, product development, etc) as well as communication (ex. Training, intranet, etc).  In addition our communication teams are viewing all messaging with the need for channel context on the topic, whether on product, services or programs.

In the future, Dell may look to develop channel-centric programs only. For incentives that customers have to go thru partners instead of direct--in many verticals, the channel adds services/solutions that are beyond Dell's scope, and this is why the channel is so valuable for Dell to reach customers it may not normally have access to.

 

Chon Nguyen said:

I hope that there are some smaller VAR's that can join in on the conversation sooner rather than later.

I have been with the "VAR Gold Team" for awhile now, and it has been an extremely frustrating experience. The reps (5 of them) seem to be responsive but it feels as though I'm teetering on the fence of being in the PartnerDirect program and having an account team. I applied and thought I was accepted into the PartnerDirect program some time ago and was granted a user name and password to the portal.

When my account team quoted me same-as-web pricing (as they VERY often do) I went to the PartnerDirect site and placed the order for a 3% discount. I recieved an acknowledgement and waited patiently for shipping confirmation. Days went buy with nothing, so I contacted the PartnerDirect phone number at which time my Gold Team called me back and told me that I wasn't accepted into the PartnerDirect program and that I still needed to go through them.

I'm so frustrated by inconsistent pricing. Can someone please explain to me how I am supposed to make a profit on hardware when I'm paying the same price as my customer can get by picking the machine out and putting in their credit card number? Am I supposed to believe that a "regular account" that does the volume that I have done is not getting below web pricing? I'd like to hear other partners insight as to the pricing that they have gotten, if the discussion can't happen here we should find a forum to discuss it.

My questions for DELL is :

* What are the requirements for PartnerDirect (both registered and certified)?

* How are you going to address pricing concerns? If you are truly focused on the channel something has to be done about this. Imagine how frustrating it is to build a machine and get a quote back from my rep that is either at or $3 below web pricing.

Thanks so much for this blog, I think it will really be great!

Mike Bukowski, Channel Liaison said:

Chon Nguyen, 

I wanted to let you know that we have this forum for our channel partners to interact and discuss these types of topics. Feel free to start a thread and see what other channel partners have to say.   

Mike

 

Mike Bukowski, Channel Liaison said:

Chon Nguyen,

I wanted to follow up on your other questions as well. 

Becoming a Registered Partner on Partner Direct you receive a number of benefits, which includes access to a Partner only store. Currently, this store runs a percent off of the Dell.com price and discount differs based upon the product line. If you find a product within the PartnerDirect store that isn’t better than Dell.com site please let us know. For most of your orders, online will best fit your needs and for larger deals you can contact your PartnerDirect account manager.

The Requirements for becoming a registered partner are fairly simple. You must be an established hardware, software, or services reseller; complete a partner application; and agree to the terms and conditions on the website. That’s it.

Once you become a registered partner you can read more details on becoming a certified partner. The requirements for each Certified Practice Area are different, but generally include completing a set of training courses, demonstrating Dell product knowledge in your area of practice, and meeting business practice and support requirements. We currently have Certified Practice Areas in Managed Services and Enterprise Architecture.

Alex Cooper said:
How much different is the deal registration internationally verus deals registered in the U.S. Are the same rules going to apply to lain America for example?
Amie Paxton, Channel Community Manager said:

Alex,

We are looking at the rules regionally as we are looking at launching Deal Registration.  While Europe and Mexico, for example, may be very similar to the US when launched some of the emerging countries may differ due to Dell’s delivery model in those countries.  That said, when Deal Registration is launched the goal is to have as much continuity as possible.

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