Give Dell a chance, you’d be foolish not to

The IT industry is full of twists, turns and surprises, but Dell’s announcement that it was turning to the channel this year was about as surprising as getting a Sydney taxi with a driver who hasn’t got a clue where you want to go.

Indeed it could be fair to say Dell’s channel venture has been underway for some time, it just didn’t classify this part of its business as working with the channel. What I mean is that Dell has been selling to channel partners for years. The only difference is it treated sales to resellers as further direct business.

A question I’ve been asked a lot of late is whether Dell turning to the channel this year is a victory for the strength of channel business? Well the first thing I’d say to that is we knew the value of the channel before. Almost every other successful global IT vendor in the world has used the channel to build its business. Just because Dell came along with a hugely successful direct business, based mainly on an incredible piece of marketing and strong online presence, it never meant the channel wasn’t still a dominate figure in the IT industry. As for the marketing spin - “You won’t find Dell in the shops”. So? You won’t find crack cocaine in the shops, but I’m not going online desperately searching for the aforementioned drug. Not on my work computer anyway.

What I am saying is that it wasn’t just Dell’s direct approach that enabled it to build its success. It was the fact it was supplying value for money computers, with reduced overheads, to a growing army of home PC users. Dell’s timing was ideal, its price was right and its message to the market was spot on.

Dell embracing the channel is not an admission of defeat for the vendor, neither is it just a victory for the channel. It is simply time for Dell’s business model, like every other company in the world, to evolve to prepare for future growth.

Earlier in the year CRN Online polled readers to ask if they would ever consider partnering with Dell. Nearly half, 47 percent, said no, never. I can’t help but feel this is a foolish, knee-jerk reaction from the Australian channel. Sure, Dell has lauded their direct success with a puffed out chest and smug grin (for further details read Michael Dell’s book - Direct from Dell: Strategies that Revolutionised an Industry). However that’s not to say it can’t get its channel model right. In time of course.

Now before I get labelled some kind of Dell loving channel hack, I should point out I’m only highlighting that if a successful, brand strong global vendor is looking for partners, resellers would be foolish not to hear them out. So in 2008 let’s give Dell a chance and assess its channel program on local shores – and that advice applies to me too. I’ve spent nearly four years as a channel journo being told “we don’t speak to channel publications”. Resellers won’t be the only ones getting used to officially dealing with Dell next year!

Send your views to ttreharne@techpartner.news

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