The 1 Step VARs Should Take Before Partnering With Dell

As Dell prepares to launch its full-fledged channel program Dec. 5, the longtime direct PC vendor's channel chief broadcast a few hints of what the new Dell will look like.

Our own Craig Zarley in November put together "10 Steps For Dell To Avoid Channel Disaster," which Dell channel chief Greg Davis decided go through with Zarley step by step.

LARRY HOOPER Can be reached via e-mail at lrhooper@cmp.com.

While Davis didn't reveal all the details of Dell's channel plans, his responses to Zarley's 10 steps did give some indication of what we can expect. Davis said the program does have buy-in from senior-level executives (including Michael Dell, of course) and will include deal registration. Further details on that program are coming.

On other points, though, the answers were a bit murkier. While Zarley recommended Dell hire a known channel exec from outside the organization, Davis said that idea was a nonstarter. And while Dell will not pay its own salespeople a higher commission on channel sales than direct sales, it has made the compensation channel-neutral, Davis said. That is probably as grandiose a gesture we can expect from Dell as it enters the channel, but it's not the move that will convince solution providers that Dell is committed.

Indeed, in a ChannelWeb poll we ran with Zarley's story, some 61 percent of more than 450 respondents thought that Dell couldn't shake its direct roots. Still, 36 percent of respondents said they thought that Dell is taking the right steps to become a true channel player.

Solution providers on ChannelWeb's discussion forums also seemed skeptical of the program, and of dealing with Dell. While one community member questioned Dell's ability to service solution provider accounts any better than it services consumer accounts, others were more concerned with letting Dell anywhere near their customers. "Every day I get up and figure out more ingenious ways to keep Dell out of my customer base," said ChannelWeb member hurdygurdy. "Usually this means adding value that Dell cannot."

As I have maintained since this began, I think another player in the channel PC space is a good thing for VARs, even if all Dell does is make HP or Lenovo more responsive to partners. Competition for VAR business is good for VARs.

Still, hurdygurdy keeps it real with the one point that is most important in all of the discussion around Dell: Solution providers need to add value that Dell cannot.

Do you have any more steps for Dell?
Let me know by commenting below, or send an email to lrhooper@cmp.com.