Dell Technologies to Cut Complexity With Partner Program Overhaul

Dell Technologies has overhauled its partner program to make the experience simpler and more consistent for partners.

Going forward there will be just one incentive structure, one tier structure and one set of tier requirements for all partners.

Dell Technologies’ global channel chief, Rola Dagher, explained the latest updates.

“These changes allow partners to position the best solution for their customers while earning consistent incentives regardless of the route to market,” she said.

Dagher described it as a “meaningful investment to really move the needle for our partners to take us to the next level together.”

More Changes

Elsewhere, Dell Technologies said it continues to double down on storage for reseller partners. It cited the 5X tier accelerator for midrange storage and a new 2% incremental rebate kicker for acquisition and Tech Refresh opportunities.

The company is simplifying the competitive swap and tech refresh processes and extending tech refresh to include server leads for resellers. It is also investing in its online self-serve capability, “accelerating the deal registration process and enabling partners to win opportunities faster.”

Other changes include expanding the new business incentive for Client to include Dell Displays and Client Peripherals. This is to support engagement across Dell Technologies’ entire portfolio and encourage cross-sell motions. It is providing license resell and rebate to all eligible metal-tiered solution providers through “Access for VMware.”

Finally, the company said it will continue to expand APEX outcome offerings and geographic resale availability throughout 2022. For APEX Custom Solutions, like Flex on Demand, solution providers can continue to refer or resell across all regions. This is supported by new training competencies in the program.

Dell’s Rola Dagher

“These opportunities will unlock massive opportunities in the $1.3 trillion addressable market,” said Dagher.

Q3 Partner Results

The vendor has also shared quarterly results, which show partners increased total orders revenue by 31% year-on-year.

Every line of business experienced orders revenue growth through the channel in the Dell’s fiscal third quarter. Client solutions led the pack with a 46% increase. Server revenues were up 31%, and storage up 6%.

Dell Technologies distribution partners increased orders revenue by 38%. Global Alliances partners increased orders revenue by 21%, while global OEM solutions revenues increased by 36%.

Partners earned approximately 28% more rebates in the third quarter year-on-year, with the channel driving 62% of all new and reactivated buyers globally.

Partner Reaction

Scott Ward is SVP technology sourcing operations at Computacenter. He said aligning the incentive and tier structures and requirements across tracks will make it “easier to serve our customers, no matter the route to market. This results in a better partner experience and the flexibility we need to help our customers win, and to win ourselves.”

Rich Falcone, CEO and president, CDI, said its Dell Technologies business “grew immensely” last year. With this investment he said expects it to grow even more in 2022.

CDI’s Rich Falcone

“Dell has demonstrated nothing but steadfast commitment to the channel,” he said.

Last year, Dell Technologies responded to reports it is taking back its PC business and selling direct to customers in the U.S. Cherly Cook, SVP, global partner marketing, confirmed that the vendor wanted to grow its direct sales in certain areas. However, she maintained that Dell’s channel business is growing faster than the market — and the competition.

Trust was cited by Dagher as one of Dell Technologies’ three pillars upon which its channel engagement is built.

“Those [pillars] are extremely important to the success of our business. Our No. 1 is the trust. Our business is built on trust and the trust with our partners and distributors by driving strong alignment and collaboration. Second is maximising on growth by focusing on end-user acquisition. Third is, how do we continue to accelerate transformation by enabling [a] channel consumption model?”