Dell Delivers Exceptional Channel Partner Revenue Growth and Customer Acquisition; Builds on Progress with New Programs and Incentives to Drive Customer and Partner Value
- Dell Channel revenue now represents more than 40 percent of overall Dell revenue; Channel business is growing faster than the overall market
- Channel revenue growth up double digits in 10 of Dell’s top 11 countries year-over-year in FY’15
- Dell solutions available in three of top five Distributors worldwide; Dell experiencing growth in excess of 50 percent in distribution in 2014
- Dell to accelerate channel partner growth with $125 million in enhanced incentives and programs in 2015
- Enhanced channel partner incentives include: storage accelerator, Windows Server migration campaign, and extended partner financing terms
Dell today announced its tremendous progress and growth in its channel partner business in the past year and delivered sweeping new programs and investments to accelerate this growth into 2015.
“It’s clear Dell’s channel business has been on fire the past 12 months and partners are winning new business and growing revenues with Dell faster than ever before. Today we’re building on the programs we delivered last year with new initiatives that will help partners dramatically increase their Dell revenue and win more new business,” said Marius Haas, chief commercial officer and president, Enterprise Solutions, Dell. “The new programs, investments and financing we’re launching today - in excess of $125 million – demonstrate we’re doubling down on our commitments to the channel, which is top priority for growth.”
Dell Delivers New Programs and Incentives to Maximize Partner Profitability and Reward Growth
Dell is delivering new Business Accelerator Funds globally of $125 million to help partners bid and close new acquisition and retention deals with customers. The program includes the following:
- Dell Storage Accelerator: Dell is delivering a specific program to help partners increase their share within customers’ storage accounts. Starting in February in North America, the new program will offer Premier and Preferred Partners enhanced financial incentives to partner sales representatives for selling Dell Storage Solutions.
- Windows Server 2003 Migration Campaign: The technology industry is in the midst of a significant change with the end of life of Windows Server 2003. Dell is launching a comprehensive set of partner enablement and sales materials combined with significant partner sales representative incentives for upgrades to Windows Server 2012R2 and Windows Server DataCenter 2012R2.
- Growth Accelerators for Client and Enterprise: Dell implements accelerated rewards for partners who grow their client and enterprise solutions business. As Preferred and Premier Partners increase their Dell revenue in these categories their reward rebates will accelerate delivering them increased profits.
- Doubling of Investments in Demo Equipment: Dell plans to double its investments in demo equipment available to partners to use as seed units and in customer sales cycles.
- Doubling of Lead Generation Investments: Dell plans to double its investments in lead generation efforts designed to drive new business to channel partners.
- Delivering Industry-Best Financing Terms: Dell and its financing partners continue to offer innovative financing solutions to channel partners throughout the U.S., Canada and parts of Europe, financing more than $2 billion in transactions last year alone. Extending on this effort, Dell and its financing partners are enhancing the Extended Terms Financing program by offering 75 days interest-free financing on all Dell purchases for an introductory period of 180 days starting today1. This enables partners to maximize growth with Dell by increasing cash flow and working capital through improved liquidity and purchasing power.
Dell Delivers New Processes, Training, Enablement and Competencies to Partners
Dell continues to strengthen its end-to-end solutions offerings to sharpen its competitive advantage. To that end, Dell announced new PartnerDirect competencies to enable partners to take full advantage of Dell’s end-to-end solutions strategy and offer customers comprehensive solutions. New Core Client Solutions and Workstation Competencies extend the nine existing enterprise hardware and software competencies to engage and reward partners across our broad range of solutions. Dell also announced new advanced competencies in Storage and Identity and Access Management to open up opportunities for partners who prefer to focus more deeply on these single practice area solutions. Partners can maximize their technical and sales skills, as well as achieve Premier Partner status and benefits through their selected advanced competency. These competencies will launch in phases around the globe in the coming months.
As part of Dell’s commitment to enable partner productivity, Dell is investing tens of millions of dollars to enhance its IT systems and provide additional tools in the areas such as lead management, deal registration, training and certification, navigation, and mobility. Dell is also accelerating efforts to enhance online and offline partner order experience. These efforts include reducing cycle times for deal registration approvals; quotes and orders; adding business to business capabilities; and automating rebates and Marketing Development Funds management and incentive payments.
“The past year we’ve seen tremendous growth in our Dell business and we expect even bigger growth this year, fueled by Dell’s ongoing commitment to investing in the partner program, particularly at a time when other vendors are going through a phase of uncertainty and change,” said Sonia St. Charles, chief executive officer and founder, Davenport Group. “We have been a proud and profitable channel partner of Dell for over 7 years and our relationship continues to get better and better. ”
“The expansion of the Dell channel program in the last few years shows the commitment of Dell in enabling the success of its channel partners in delivering the full suite of Dell products and solutions – hardware as well as software and services,” said Paul Edwards, Director of Infrastructure Channels & Ecosystems Research, IDC. “Dell’s suite of products and solutions, combined with its new programs designed to increase partner profitability, will help partners drive new opportunities. The new incentives and programs demonstrate Dell’s continued drive to grow its revenue through the channel.”
Timing of Availability
The launch of the Dell PartnerDirect program enhancements outlined above will start in North America on February 1, 2015, and rollout to other regions will soon follow. Additional details will be shared with Dell’s PartnerDirect partners in the coming weeks.
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1The offer will be extended to Premier and Preferred Partners who transition from Dell open account terms to Extended Terms Financing with GE Capital and Wells Fargo Capital Finance in the U.S. and Canada, and GE Capital in the U.K., Germany, France, Spain, and Italy. Partners must sign up for program by January 31, 2015, and all registrations will be subject to qualification and credit approval. After introductory period ends, interest free ETF will become 60 days for Premier Partners and 45 days for Preferred Partners. Partners in Quebec will only be supported by GE Capital.