Dell EMC boots two rogue resellers off partner programme for deal reg abuse
Sarah Shields reiterates zero-tolerance approach to partners that break the rules
Dell EMC is kicking two partners off the Dell EMC Partner Programme this week after they engaged in repeated abuse of the deal registration system.
The partners, which Dell EMC will not name, both abused the deal reg system of the new programme, which went live last month. The vendor said the action proves it will enforce its zero-tolerance view on any dodgy deals its partners or its inside sales staff are involved in.
One partner was found to be fuelling grey market activity by "consistently reselling goods secured for a named customer", according to Dell EMC's UK channel boss Sarah Shields. The second, she said, was "registering a deal reg for customer A and then repeatedly selling to customer B, knowing they weren't able to get a deal reg for customer B in the first place".
"Zero tolerance means zero tolerance" - Sarah Shields
Shields remained tight-lipped on specific details about the partners in question.
"Are these partners everyone would have heard of? Possibly not," she said. "They are not the biggest and they are not the smallest. But that is irrelevant. What is relevant to me here is that we take this really seriously. We will reward handsomely partners which engage in a true partnership with us and we will take action where needed so that this is the best programme we can offer."
Both firms will exit the programme this week.
When Dell EMC launched the new combined partner programme - a few months after the firms integrated following Dell's acquisition of EMC - it was keen to stress the importance of its rules of engagement. The code of conduct was designed to ensure the Dell EMC inside sales force, which has historically been a direct-selling business, does not gazump channel deals, but also to ensure that partners themselves play fair too.
Shields told CRN that the zero-tolerance stance on partner programme abuse works both ways, and that the company has no problem booting out those that purposely cheat, which she said is demonstrated by this week's move.
"When we launched the programme, you heard it straight from John's mouth [John Byrne, Dell's channel chief]," she said. "He has said it a few times now: we have a zero-tolerance policy when it comes to the programme.
"It has been an important piece of feedback we've had as we developed the programme. Partners want clear rules of engagement and a clear code of conduct - and it needs to work in both directions. We've invested heavily in what we believe is the best programme in the world. We've delivered on the three tenets we promised - simple, predictable and profitable. We're taking this as a new dawn in our new company. So when we look at zero tolerance, zero tolerance works in a bi-directional way. We have a zero-tolerance policy if any Dell EMC salesperson compromises a deal reg in place for a partner. Similarly, we have a zero-tolerance policy on partners that break the code of conduct or rules of engagement we have, which are simple and straightforward.
"We are exercising that right this week. We will be exiting two partners, both of which have fraudulently used the deal reg process in order to obtain pricing and support for deals which have not ended up going where they were intended."
When asked to further explain the firm's approach to discipline, Shields insisted the moves are not "bully-boy tactics", but instead are designed to protect partners that play by the rules.
"Zero tolerance means zero tolerance," she said. "To err is human and mistakes do happen and we're not oblivious to a one-off mistake - in both directions. There is a degree of reasonableness which has to be implemented. But you can't make that same error X number of times. It's very much a case that what we look at is intent.
"Was the intent to defraud the process? If the answer is yes, we then need to understand how supported was that intent. Was that a rogue seller in a partner? In which case, is there an issue of control and process within that customer? Or is it a case that you've got one particular person who has done the wrong thing on purpose? We work in partnership with our partners there. But zero tolerance is a big factor that was asked for by partners. We want this to be fair and equitable for all and therefore bucking the system or cheating in order to get better pricing on deals is not acceptable."
Dell EMC uncovered the issues with the partners' deal registrations itself internally, but soon after doing so, was alerted to the issue by numerous others from its partner base.
"We found this through our own internal processes first, which I am thrilled to bits with as it shows the system works," she said. "The fact we found it first was testament that the investment we made in systems and processes was paying off."
Bill McGloin, chief technologist at Computacenter, a Dell EMC partner, told CRN he believes the vendor has taken "a reasonable approach".
"We look for a fair and equitable playing field," he said. "So if Dell EMC is helping that happen, then it's good news."
Roger Harry, managing director of Circle IT, said that he heard Dell EMC's "zero tolerance" messaging at Dell EMC World, and is pleasantly surprised it is coming to fruition so early on in the programme.
"It's good to know they are enforcing the rules of engagement because obviously those partners could have been bidding against us in that scenario," he said. "We provide value in terms of value-added resellers to a customer, rather than just on a transactional basis. If we provide value and someone else cheats the system, we welcome it."