Dell EMC Kicks 2 U.K. Solution Providers Out Of Partner Program For What It Says Were Repeated Deal Registration Violations

Dell EMC has kicked two solution providers out of the company's partner program after saying that they repeatedly violated its "zero-tolerance" policy on deal registration.

Both partners are midsize U.K.-based solution providers and will be out of the program officially this week, a Dell spokesman said. Dell EMC is not identifying the partners.

The disciplinary action comes mere months after Dell EMC Channel Chief John Byrne declared that he will have "zero tolerance" for deal registration violations from either partners or Dell EMC account executives, who face being fired if they repeatedly violate the program's terms of engagement.

Related: Dell EMC Global Channel Chief Byrne On Being 'Super Aggressive,' Taking Market Share Against Every Competitor And His Zero Tolerance Deal Registration Policy

That was the case with the U.K. solution providers, according to the spokesman, who said both companies had repeatedly broken deal registration rules by either selling into the gray market, or registering deals for one customer and selling that gear to another customer knowing they wouldn't be able to register a deal with the second customer.

Steve Hipskind, president of Hipskind Technology Solutions, an Oakbrook Terrace, Ill.-based solution provider that works with Dell EMC, said Byrne's commitment to strict rules of engagement gives partners confidence that the $74 billion vendor has their back.

"What John Byrne is saying, and what is being heard, is really consistent," Hipskind said. "They set forth some objectives, and they're going to reach them. These guys mean business, and the message has been loud and clear. If I violate, I should be kicked out too."

The other half of that equation, Hipskind said, is dramatic revenue growth for partners that fully buy into the Dell EMC story. He estimated that Hipskind Technology Solutions will see 200 percent revenue growth this year compared with last. "We need to close deals and make quota, and [Dell EMC is] doing the right things to make that happen. Our pipeline is growing because they're executing. They're concise and direct. It's predictable, and that's what we need. We've all seen rule violations. The partners that thrive are the ones that don't. The partners that thrive are the ones that raise their hand and say, 'You know what? That was us. We're sorry.' The Dell EMC culture values that enormously."

Mark McKeever, principal at MicroAge, a Tempe, Ariz.-based solution provider that works with Dell EMC, said the vendor "absolutely did the right thing by de-authorizing those partners."

"A manufacturer is going to end up with a bazaar if they don’t have integrity in their channel pricing," McKeever said. "It’s going to eventually hurt their whole channel if they let it slide."

’We are asking partners to place bets on Dell EMC and grow their business with the Dell EMC partner program," a Dell EMC spokesman said in a statement to CRN. "In return for this trust, we need to protect their investment with strong deal registration policies and adopt a zero-tolerance policy for violations. We take our partners' commitments to Dell EMC seriously and will continue to be vigilant protecting their customer relationships and investments.’