Dell Puts 200,000 Direct Accounts Into The Hands Of The Channel


In one of the most sweeping changes to its seven-year-old partner program, Dell said Wednesday that it is rolling out lucrative incentives for Dell Direct sales reps to work hand in hand with channel partners. Dell said part of the push includes moving about 200,000 existing Dell Direct accounts to channel partners and creating a 20 percent "compensation accelerator" for its direct sales team to generate new enterprise business with Dell channel partners.

"In terms of driving sales engagement between Dell Direct and our partner community, this is by far the most significant set of activities that we have ever done to drive a cultural transformation as a company and change our channel's go-to-market strategy," said Bob Skelley, executive director of Dell's Global Certified Partner Program, in an exclusive interview with CRN.

The Round Rock, Texas-based company unveiled the channel changes at Dell World, which runs Dec. 11 to 13 in Austin, Texas, and they will go into effect Feb. 1. The moves come at a pivotal time for Dell, which just completed its $24.9 billion private equity buyout and weeks ago underwent a major internal shakeup that puts both direct and indirect sales under one organization overseen by Bill Rodrigues, Dell's newly appointed vice president of global channels and alliances.

 

[Related: Dell's Private: Now Comes The Hard Part]

Dell also said it will quadruple the money spent on its Dell PartnerAdvantage sales incentive program, significantly boosting rewards and points used to motivate partners. Part of Dell's push includes making a five-fold increase in new investments in the number of demo units, seed equipment and lab hardware available to partners.

Frank Vitagliano, vice president of North America global commercial channels, select sales channels, told CRN the moves will help Dell push its channel sales needle from just 33 percent of its global commercial business to a number that could almost double to as much as 60 percent as Dell moves to grow its enterprise sales footprint.

"Dell wants to significantly increase the share of wallet with our partners and foster deeper strategic relationships between Dell Direct and partners. These changes create crystal-clear rules of engagement for the channel that are consistent and predictable," Vitagliano said.

NEXT: Dell Channel Program Update Specifics