Dell is to rationalise the number of distributors globally it works with after concluding that recent acquisitions have left it over-distributed.
The number of Dell distributors in developed countries has swelled to 170 following an M&A spree that has taken in 16 firms since 2010, including Wyse, SonicWall and Quest
Talking ahead of the Dell Technology Camp in Paris, Greg Davis, vice president of Dell global channels said it was time to swing the axe.
"We are trying to rationalise that list - quite honestly we have too many," he said."A lot of the acquisitions we did were selling product solely through two-distribution. We've maintained those relationships but we are currently going through a process with all of the business units and countries to evaluate those relationships."
Talking to CRN, Davis added that a team of Dell executives came to Europe two weeks ago to assess the local distribution landscape in each country and each business unit. Distributors carrying only one of the acquired products may face the chop if it is decided there is no opportunity to expand the relationship.
But Davis emphasised that distribution will remain a growing part of Dell's business.
"Many of the VARs who buy direct from Dell also acquire through distribution so we see it as a valuable part of the ecosystem so we want to grow it. But we also need to rationalise it as, quite honestly, some of those partners aren't growing," he said.
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