Partners Predict Sales Conflict As Dell EMC Removes Quest Software From Its Channel Program

Dell EMC's relationship with Quest after its sale of that software business doesn't include the channel, and solution providers said they're being put in a position of potentially competing with Dell EMC's direct sales teams for Quest business.

"They didn't set up a two-tier reselling relationship with Quest," said an executive at a Dell EMC solution provider that works with Quest. "They say [Dell EMC] clients will still be able to buy Quest, but what they mean is that direct teams will sell Quest. Quest is not available through [Dell EMC's channel program], and the Quest people are taking a hard line."

The result is that solution providers who were previously able to sell Quest software as part of their Dell line cards will now have to join Quest's channel program if they want to continue that relationship. Solution providers are concerned they will have to compete with Dell EMC sales reps in the field for Quest business in Dell EMC accounts.

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"A customer can either buy through a solution provider as a partner of Quest, or through Dell EMC as a partner of Quest, and making that decision is tricky politically," the solution provider executive said.
Dell EMC confirmed that Quest products won't be available through the company's channel program, but will be sold by Dell EMC direct sales teams.

A Quest spokesman said in an email that Quest, which provides a wide variety of software for data management, security, back-up and recovery and other functions, would bring Dell EMC partners into Quest's Partner Circle channel program at their equivalent level and with all of their current competencies and accreditations intact.

Quest declined to comment on how it intends to manage competition between Dell EMC sales teams and Quest solution providers that also work with Dell EMC.

Some solution providers said that while the new arrangement may hurt the bottom line, they can also understand the Dell EMC's rationale.

"My guess is, come next quarter, the data protection part of EMC will be given more precedence" over Quest solutions, "and that makes sense," said a Dell EMC solution provider executive that works with Quest.

Scott Harper, vice president for data center and hybrid IT at Softchoice, a Toronto, Ontario-based solution provider, said Softchoice is the largest reseller of Quest software in Canada and the move to sever the business from Dell EMC's program seems to be in line with existing corporate strategy.

"Why wouldn't they operate as a stand-alone [entity] and develop their own channel program?" Harper said. "They're a stand-alone entity now, similar to VMware. [VMware] is stand-alone. [VMware has] its own channel, its own channel program, its own licensing. I would assume Quest would do the same."

Dell Technologies closed the sale of its software unit, which included Quest and SonicWall, to Francisco Partners and the private equity arm of hedge fund Elliott Management earlier this month. At the time, Dell Technologies executives said the company would continue to work closely with both Quest and SonicWall.

At the Dell EMC World conference in October, Chairman and CEO Michael Dell reinforced his commitment to the channel, but was also blunt about the business units the company had sold off. "If it's not No. 1, we sold it," he told a roomful of partners in response to a question specifically about the software business.

Dell bought Quest for about $2.4 billion in 2012.

Dell put its software unit on the block, along with other assets, after it cemented its agreement to acquire EMC last year. The sales helped to offset the cost of the $58 billion acquisition and also reduced duplication of technologies gained in the acquisition.

Dell EMC is preparing to launch its new, unified Dell EMC Partner Program at the start of its fiscal year Feb. 1. Channel Chief John Byrne is expected to have many aspects of the plan in place next month.