An Open Letter To Michael Dell

Dear Michael,

I don't believe we have spoken in a few years. In fact, the last time was at the CRN Industry Hall Of Fame event ceremony, when you were inducted. My recollection was that in your acceptance speech that night you noted that Dell was really part of the technology channel. I agree with that statement and have always believed that at some point you would conclude it would be a smart business move to become part of the indirect channel in addition to the direct portion.

ROBERT FALETRA Can be reached at (781) 839-1202 or via e-mail at rfaletra@cmp.com.

That's why I was particularly interested to read your recently leaked internal memo to employees in which you stated that your direct-sales-to-end-users approach was not a "religion" and that the company is looking at the possibility of other forms of distribution.

The CMP Channel Group, as you know, has spent more than 25 years researching, mapping, following and predicting through data analysis where the indirect channel needs to move in order to drive more profit and sales.

Solution providers and vendors alike turn to us for analysis, data, trends, advertising, marketing services and consulting to help them build strong, viable channels.

We believe in the value of the indirect model and its ability to drive sales for vendors in markets that it would be cost-prohibitive to enter into in any other fashion.

Today, we see more solution providers than ever becoming trusted technology and business advisers to their customers.

As solution providers become problem solvers for their customers, they are changing the sales process and becoming, in many cases, the decision makers about which products and technologies, including the brands selected, are going into the solution.

The fastest-growing and most profitable solution providers I know are adopting this approach. What they find is that by solving business problems, they are no longer part of the product and technology raffle.

It seems to me that Dell would benefit greatly by building a bridge to the indirect channel. It is the fastest and best method to expand your sales force. It will increasingly be more profitable because the problem-solving sales approach removes the raffle component.

But if you are to be successful in capturing this opportunity, you will personally have to be committed to it, and it will have to be a serious effort.

This switch is something that has been accomplished before. Cisco flipped from a direct sales model to an all-indirect sales approach a number of years ago, and we know the success the company has had as a result.

I look forward to speaking to you in more detail soon about your strategy.

Sincerely,
Robert Faletra

What would you like to ask Michael Dell? Make something happen. E-mail CMP Channel Group President Robert Faletra at rfaletra@cmp.com.