'Why did it take them so long?' - channel reacts to Dell
Following its move to lean more on the channel sell its storage products, CRN canvassed 6 partners for their reactions to the news
Dell's major announcement to spice things up in the channel and lean more on partners to sell its storage products remains a hot discussion point.
CRN has already picked the brains of analysts from Gartner, IDC, and CONTEXT for their thoughts on the partner-led strategy.
But with news that Dell is making cuts to its direct sales teams, what do resellers and MSPs really think of the decision?
CRN spoke with six channel partners, those who work with Dell and those who don't, to find out.
Logicalis
What are your thoughts on the announcement?
"How has it taken us so long to get to this point, as an industry?
"Let's be honest, whatever is written on certain websites, some of our vendors are pro partnering, some say they're pro but in the background they're maybe not as pro.
"When you go up into the C-level world, you don't talk about product.
"But equally, I don't know of any vendor out there that's got everything.
"This is why partners bring such value. In addition to quality people, quality delivery, and quality customer relationships we can have one business-led conversation covering multiple vendors and products and solutions.
"That's what our customers want. Our customers don't want a million different relationships and millions of people.
"I think over the years the partners have got a bit of a bad name as being that middle piece of the jigsaw.
"That has gone. We all know that that value added piece is harder and harder. You can't make money off product alone nowadays. It's being able to go into businesses and talk about a whole solution that's going to help them fix the challenge they have."
What are your thoughts on the announcement?
"In the channel we are massively dependent on the vendors we work with and there's nothing more demoralising and demotivating than putting a significant amount of work into an opportunity to then find that the vendor wants to take it direct.
"Around storage and around data, it's so complex and it's so important to have meaningful conversations with quality partners who are taking your message out to customers.
"If Dell has realised that actually, if you then back those customers by allowing them and supporting them to do that, to be involved in the business when it closes, that will build enormous loyalty and long term relationships.
"From a Dell perspective it's excellent news. To know that Dell are officially saying ‘we back to the channel' in this way differentiates them from some, but they are behind the curve with others."
Continue reading to hear the views of leaders from Trustmarque, SCC and Performanta...
'Why did it take them so long?' - channel reacts to Dell
Following its move to lean more on the channel sell its storage products, CRN canvassed 6 partners for their reactions to the news
William Carver, GM, desktop and enterprise, SCC UK
What are your thoughts on the announcement?
"I run SCC's enterprise infrastructure business unit, so I'm particularly pleased Dell made this move - since starting to actively work with Dell four years ago, our mutual business in the UK has gone from strength to strength, and this feels like one of the last pieces of the puzzle, albeit that we'd like them to do this for client business too."
Dell's competitors previously differentiated themselves by being more partner-centric. What does this announcement now mean for Dell's competitors?
"The key storage players, at least for larger enterprises, aside from Dell, are HPE, Pure Storage, NetApp and Lenovo all of whom already work well with the channel, so to some extent this is Dell 'normalising' their go-to-market.
"I think it'll mean other vendors having to work harder to retain channel loyalty; Dell's technology is impressive; their channel teams are highly effective and the rewards significant."
Is this a sign Dell is embracing the channel or is it more about reducing its headcount given the news that Dell is now making layoffs in its sales teams?
"Given the recent restructuring inside Dell, and the announcements around headcount reductions, I suspect some of this is about cost and some about the sheer complexity and breadth of capability customers need to deliver projects.
"The days when customers wanted to just add X amount of storage to an array are long gone, now it's about workload placement, orchestration, automation, security and multiple landing zones.
"A technology producer like Dell can't easily cover that breadth in house and needs to leverage a capable channel. And of course, as HPE, IBM and others recognised some time ago, why would you have all the cost of a direct sales team in a complex, hybrid cloud market when you can leverage hundreds of channel sales people much more cheaply."
'Why did it take them so long?' - channel reacts to Dell
Following its move to lean more on the channel sell its storage products, CRN canvassed 6 partners for their reactions to the news
Donavan Hutchinson, chief revenue officer, Trustmarque
Does Trustmarque plan on opening conversations with other vendors who may mirror Dell's move?
"Absolutely, Trustmarque's 35-year heritage has positioned us as a close collaborator with numerous key vendors over the years, consistently delivering value to our clients. We've witnessed many vendors that initially adopted a direct approach later transition to the channel, recognising the scalability and customer relationship benefits it offers.
"Our commitment remains steadfast in driving technological value for our clients. As more vendors embrace the channel-first approach, we are indeed open to engaging in discussions with those who mirror Dell's move. Our experience and dedication to delivering results uniquely position us to explore such opportunities."
This is a huge move for Dell, but what does it mean for the rest of the channel?
"While some vendors have been exclusively channel-focused for years, Dell's decision to adopt a channel-first strategy is a logical step in today's dynamic business landscape.
"The channel plays a pivotal role in ensuring scalability for vendors. Distributors and VARs within the channel have made substantial investments in their workforce, allowing them to effectively address customer needs and recommend suitable solutions.
"This ecosystem enables vendors to not only promote their products but also capitalise on the strong relationships these channel partners have cultivated with customers seeking a vendor-agnostic approach.
"The channel's importance goes beyond flexibility for customers. Trustmarque, as a dedicated Titanium partner, has heavily invested in technical expertise, which often translates into offering additional value-added services that vendors might not be able to provide. This is where Dell's shift to a channel-first approach aligns with its commitment to embracing the channel, driving value to customers, and maintaining its innovative edge.
"As Trustmarque, we're excited about Dell's embrace of the channel-first strategy. Being a Titanium partner, we're well-positioned to collaborate closely with Dell to deliver the value of technology to our shared customers. "
Other vendors have been proudly 100 per cent channel for several years. Why do you think Dell is making this move now?
"Dell's decision to shift towards a channel-first approach might stem from the evolving dynamics of the technology landscape.
"While other vendors have been channel-focused for years, Dell's move could be driven by the realisation that leveraging the channel's extensive reach and customer relationships is becoming increasingly critical for scalability and growth.
"By embracing the channel now, Dell aims to tap into the value that channel partners provide, enhance customer experiences, and maintain a competitive edge in an evolving market."
Do you think others in their space and on the fence about increasing partner-first will watch Dell for a quarter or two before following suit?
"It's quite likely that other players in the industry will observe the impact of Dell's shift to a partner-first approach for a quarter or two before making similar decisions.
"The tech industry is known for its tendency to analyse market responses and trends before adopting significant changes. Dell's move could potentially set a precedent, encouraging others to assess the benefits and outcomes before considering a similar transition."
'Why did it take them so long?' - channel reacts to Dell
Following its move to lean more on the channel sell its storage products, CRN canvassed 6 partners for their reactions to the news
Guy Golan, CEO, Performanta
What are your thoughts on the announcement? Is it a sign that Dell is embracing the channel or is it more about reducing its headcount given the news that Dell is now making layoffs in its sales teams?
"I think it is both, and in a very good way. Many of the vendors in the market are puzzled about their relationship with the channel. They are trying to tap into the resellers' world by providing services directly to clients and changing the business model to direct MSSP rather than term license.
"This creates strong friction in the channel. Even more so, when vendors claim they care about the channel but behave in such an abusive manner (I can share quite a few of those stories myself!).
"Dell's channel focus is a breath of fresh air. It looks like they've done their research and understand that the channel holds great value for them. Not playing the double game of direct vs channel will pay dividends in the future and save them a few bucks on operations costs."
Other vendors have been proudly 100 per cent channel for several years. Why do you think Dell is making this move now?
"Smaller vendors were indeed 100 per cent channel focused. As some of them grew they became less channel focused and went more direct. In fact, the behaviour is of a wave. Small - direct; medium - channel, large - mixed and sometimes leaning to more direct.
"I believe Dell is reading the market well and understands the channel is bruised by the aggressive approach of the large vendors. They follow those that perfected the channel on the market (the likes of Microsoft) and realise there is more to it than increasing your revenue by saving five per cent to ten per cent on channel costs.
"The timing is perfect especially when resellers realise that they need to be more sophisticated to sell, thus, adding value to clients. And this is exactly what Dell wants."
Dell's competitors previously differentiated themselves by being more partner-centric. What does this announcement now mean for Dell's competitors?
"Simple, Dell will grow even more and build wider and stronger relationship with the market through the channel.
"I believe the competition should assess the situation and understand if they have other key differentiators apart from channel centric as being the major one."
Is a partner-first strategy likely to extend across the wider Dell portfolio?
"The more commoditised the more it should be channel led. The more specialised, it should be led by expert channel supported by Dell, especially services and consulting heavy products. I believe Dell will move as much as possible to channel for as long as it makes sense for them and their clients.
"The channel will benefit as a result. The crown jewels will remain in Dell's hands for as long as possible. Although, I wish they'll trust the channel and vet those that are true experts to deliver on their behalf."
'Why did it take them so long?' - channel reacts to Dell
Following its move to lean more on the channel sell its storage products, CRN canvassed 6 partners for their reactions to the news
David Tulip, MD, Network Group
What are your thoughts on the announcement?
"It's not the first time we've seen Dell (and others) come to (back) to the channel…having been around for a while it's all a bit hokey-cokey isn't it, in-out, in-out!"
Other vendors have been proudly 100 per cent channel for several years. Why do you think Dell is making this move now?
"There will no doubt be multiple reasons behind this move, many which I am not privy to.
"My thoughts would lean towards reduction in headcount presenting, whilst also being able to rely on partners for the more technical aspects of sales and delivery."
This is a huge move for Dell, but what does it mean for the rest of the channel?
"I think it creates opportunity for channel partners of course, particularly if you already partner with Dell, work the mid-market, and have a storage focus."
Dell's competitors previously differentiated themselves by being more partner-centric. What does this announcement now mean for Dell's competitors?
"Probably business as usual. There is some threat to Dell's competitors of course but channel partners need to be confident in any partnership and that doesn't always happen overnight.
"Loyalty plays a big part; no doubt there will be some weighing opportunity against that."
Do you think others in their space and on the fence about increasing partner-first will watch Dell for a quarter or two before following suit?
"Not overly, maybe if others have been considering it will tip them over the edge. For me (and I am biassed) the best approach is a blend of channel and direct - with more being channel!
"I say that not only because I am biassed but because of the demographic of the UK end-user customer; they are more often than not better served by partners.
"I accept direct has a very definite place and to my mind the leading vendors have BOTH direct and indirect, but to be a leading vendor/manufacturer they must be respectful and supportive of their channel and not competing with it.
"Consistency and trust are the key to success in the channel. Some vendors go the other way in tough times and look to maximise margins by going direct."
'Why did it take them so long?' - channel reacts to Dell
Following its move to lean more on the channel sell its storage products, CRN canvassed 6 partners for their reactions to the news
Stephen Harley, technology evangelist, Bechtle UK
Does Bechtle UK plan on opening conversations with other vendors who may mirror Dell's move?
"We engage regularly with all our key partners, obviously how they choose to reward their sales teams has an impact on engagement but it's really a matter for each vendor, we'd of course encourage them to adopt schemes that incentivise healthy engagement with channel partners like ourselves."
This is a huge move for Dell, but what does it mean for the rest of the channel?
"I think it signals the importance of the channel for major vendors and the value we bring when engaging with our mutual clients.
"I think for other manufacturers and vendors it perhaps concentrates the mind that Dell are doing all they can to build ever stronger relationships with partners - I'm sure they'll be keen to make sure they are just as engaged with their partners."
Other vendors have been proudly 100 per cent channel for several years. Why do you think Dell is making this move now? What do you think was the key driver behind the decision?
"I think Dell will be looking to make sure they maximise the effect of their sales teams and partners to help them magnify their reach - for businesses like Dell partners offer the ability to engage with more clients and deliver more tailored solutions whilst minimising costs to their business.
"That's always attractive, never more so than when growth is harder to achieve due to the macro economic environment."
Do you think others in their space and on the fence about increasing partner-first will watch Dell for a quarter or two before following suit?
"I'm sure they'll be watching but I think all of the major vendors in this space will consider their channel strategies carefully and make a thoughtful decision - If you are already 100 per cent channel then it'll stiffen competition and you may need to react in some way but it won't be as radical as if you have a direct sales team in competing spaces.
"For those with direct teams it might move the dial more significantly but I'm sure they'll not knee jerk and will evaluate what is right for their businesses."