SonicWall sale holds no risk for partners, claims Dell

Dell executives move to alleviate partner concerns at Dell Security PEAK event

The sale of Dell Security holds "no risk" to partners and the channel, according to two Dell Security vice presidents.

The vendor announced a deal yesterday to sell its software business to Elliott Management and Francisco Partners for a reported $2bn (£1.35bn).

Speaking at Dell Security PEAK 2016, vice president of product, Patrick Sweeney, and vice president of sales, Steve Pataky, moved to alleviate any fears that partners may have.

"There is no risk to anyone," Sweeney said. "The most important thing to all of us is that if you've got any business in transaction, I guarantee you that you will be able to continue to do it."

Sweeney confirmed that Dell is not exiting the firewall business and, through several deals already put in place, it will be able to resell SonicWall firewall products.

Products labelled "Dell SonicWall" will also continue as such for "a long period of time".

Sweeney stressed, however, that Dell will not have a "crazy silly advantage" over current Dell Security partners, but that there will be "a long relationship" with the vendor.

"There are partners that have come to us from Dell - we want to preserve that. They have the ability to still work through the normal channels; there's no need to interrupt any of that business," Pataky added.

"We think this is going to create a healthy environment for those that choose to work through Dell; for the legacy partners that work through our own programme - whatever those things are, we're going to ensure that that's done the right way."

Sweeney explained that a conversation with Michael Dell a year ago resulted in the start of a process to give Dell Security "more autonomy" and move the decision making "back into our organisation".

"Michael Dell, true to his word, worked on that over the course of the year," he said.

He added that they did not know a year ago what the end state of Dell Security would be, but they wanted to get to "a point in time where we controlled our destiny", with private equity being an option.

Some at the PEAK conference, which is taking place in Malta, were surprised that Dell Security will be acquired by a private equity company, but Pataky stressed the dedication of the potential new owners.

"These are people who really understand the software and the security business," he said.

"This is not somebody who just buys businesses for the sake of trying to turn them. This is a deliberate move."

Sweeney also took great pleasure in announcing that the SonicWall name is set to return, possibly incorporating the identity access management name as well.

"After spending three years fighting its demise, we are able to use the brand as we see fit. We will own the brand in the new entity entirely," he said.

"The SonicWall brand name lives and will live on forever."

Partner reaction

Durgan Cooper, director of Dell partner Cetsat, agreed that Dell Security would gain more freedom outside Dell, but said he is frustrated there is still no word on what will be in the product range.

"I have worked very closely with the Dell Security team over the past few years and I think they've had quite a lot of shackles placed upon them; a lot of restrictions," he said.

"A lot of initiatives we've been looking to run with have been going through 'policy police' and been turned down.

"I think that it will enable them to do what they do best rather than working for this big brand.

"They'll be released to get on and market themselves and work with their partners on the marketing so I think it will make life easier for us, ironically."

Eamon Moore, managing director of Dublin-based Dell partner E-MIT Solutions - who was also at the event - agreed.

"I think it's part of the overall Dell strategy and something I'd agree with; I think for SonicWall it's going to give them back focus," he said.

"There was a benefit to have the Dell brand there alongside SonicWALL from a sales point of view but SonicWall itself has been around so long and has such a strong name anyway, so there's no worry there from our point of view."

It was suggested in yesterday's key note that the split would cost Dell Security its unique selling point - it's integration with Dell products - but Moore did not believe this will hold back the vendor moving forward.

"When you pick and choose the right partners to deliver your version of end to end, I think that's more important," he said.

"SonicWall going on its own, having that focus, will be able to put their best foot forward because they can concentrate on what they do best now, and the same can be said of Dell. They have their strategy and they're ready to go. I'm just delighted that we're partners with both because it's going to be successful going forward.

"If this had been something that started off as a Dell SonicWall partnership from day one I think it would have been more challenging. The fact that SonicWall had its own partner system and was quite advanced up until it was acquired by Dell I think will make the transition much easier."