EMC channel push to equal Dell hell?
Will Dell be the biggest loser as EMC replicates its move to embrace the channel, asks CRN deputy editor Doug Woodburn
By Doug Woodburn
Not since Dell ditched its direct-only mantra last decade has the IT channel stood to benefit from such a big transfer of business from a major vendor.
The scale of EMC's announcement this morning that it is turning its back on direct sales in the enterprise segment - barring 1,000 named accounts globally - should not be underestimated.
Unlike Dell, EMC has a strong channel heritage but the volumes of business involved in this handover are still massive.
EMC also said it was throwing more resource behind its partners' traditional backyard - the midmarket - pledging to double its UK midmarket headcount to 60 this year. Together, the intiatives are designed to help it increase global turnover to $28bn by 2014.
And coincidentally it is Dell that could stand to lose the most from EMC's channel push. Ever since Dell stopped reselling EMC's storage wares last summer - instead opting to focus on its own technology - the two have warred for influence in the channel. Dell has recently made headway in the storage channel but EMC's latest announcement could just give it the edge, some resellers believe.
In the UK, EMC will reserve the right to work directly with a "hard deck" of 150 giant enterprises - falling to 100 next year. It previously worked with about a 1,000 accounts in the UK and estimates the move will free up $3bn of enterprise business for its partners in this country.
That works out at a tasty $15m for each of EMC's 200 UK partners if the vendor has done its sums right, although partners are still not yet sure how these 850 accounts will be allocated.
Although EMC is no Dell, the vendor still must swifly overhaul its sales culture to ensure a smooth handover, which is why it is also updating its rules of engagement and internal sales commission structure.
And partners I spoke to were convinced that EMC has an easy job ahead of it compared with Dell.
After all, EMC does already "get" the channel, said Softcat boss Martin Hellawell.
"The channel is not new to them - they know the ropes and just see us as the best route to service a larger number of customers," Hellawell said. "Yes, some sales people will be stuck in their direct ways and it might be hard work for them to begin with, but the adjustment will be relatively small compared with someone like Dell, who saw the channel as an enemy."
Brett Edgecombe of EMC partner 101 Data Solutions also saw the announcement as the final step in a five-year journey for the vendor.
"We have been selling into one of EMC's largest accounts for four years," he said. "The customer has asked them if they will get any benefit from buying direct and EMC has told them they're better off being looked after by us."
No matter who wins - EMC or Dell - resellers hunting for a channel-centric vendor in the storage space are now spoilt for choice.