Dell Stresses Channel Commitment At XChange '08

While Dell has done significant work in building a strong channel program and earning the trust of its channel partners since it announced its Partner Direct channel program at XChange '07, the company knows it still has work to do as it moves forward.

"As the industry continues to evolve and your business continues to evolve my goal is how do I make you successful as the CIO for your customer set and how do I streamline your business? How do I eliminate cost for you and enable you to increase your productivity?" Greg Davis, vice president and general manager, Americas channel group at Dell told attendees at XChange '08 in Grapevine, Tex., this week.

With more than 40,000 partners in 181 countries worldwide with a $12 billion annual revenue run rate, Dell's channel program is making inroads in the channel. And while Dell is looking to build its partner base, the company doesn't want 10,000 certified partners and an unwieldy program, but in having right set of partners investing in Dell with skills to sell services and enterprise solutions, Davis said.

"I have some fancy Dell Partner Direct shirts that we've invested in. That shows you that we're committed," Davis joked.

Dell announced that in addition to its managed services and enterprise architecture certification practices, it will be launching a government and public sector certification practice in the coming months. Dell is also looking at creating a healthcare and possibly an ISV certification program as well.

In the next 6o to 90 days Dell also hopes to lower its deal registration opportunity threshold from $50,000 to $25,000, opening it up for more business and to a wider array of partners. It will also institute a financing program with flooring opportunities and 45- and 60-day terms for partners.

"You're feedback is that you're making great progress. But your feedback is also you have a lot of work to do," Davis said.

He had a score card, identifying what he thought Dell had done well and what still needed work. Having formed a partner advisory council, a deal registration program and certification paths all received smiley faces.

Neutral faces went to the partner marketing resource category, to having a world-class partner portal and to partner communication and training.

Dell's re-sellable services and partner financing opportunities got sad faces, meaning Dell still has a ways to go.

On the services side, Davis said he thought Dell would have made more progress than it had by now. "I hoped to have a lot of those things announced by now but I don't. We're committed to it. You're not hearing me say we're not, but its taking quite a bit longer than I'd hoped to have all of the services available to our partners. I certainly hope by the end of the year I will have accomplished that," he said.

"There is a lot more work we can do to do a better job at communicating our value-add and in assuring that you and all of our partners understand what we're doing and what we're investing in," he said.

Dell's vice president and general manager of corporate accounts, Donna Troy and Erik Dithmer, the vice president of SMB sales also attended to tell partners how the two direct sales groups were engaging with partners and moving the company towards having a multi-channel strategy.