Industry Execs: New Channel Won't Be So Easy For Dell

"It's not so easy to understand partnering and to understand the channel," said Kevin Gilroy, vice president and general manager of North America commercial channels at Hewlett-Packard.

"You can't just throw a box at the channel and pretend you have a channel program," Gilroy said. "It's not about boxes; it's about understanding channel economics. We have always supported the channel, and it's kind of interesting that Dell is now singing the channel's praise."

Building a business through the reseller channel requires a sharp focus, noted Steve Dallman, general manager of North America channel sales at Intel. Dell already sells systems through VARs, so establishing a formal, on-the-record channel program could benefit Dell and its partners, he said.

"Dell's move here [to sell unbranded PCs does nothing but endorse that whole channel as a viable channel," Dallman said. "From that standpoint, I think it's good."

For more than a year, Dallman has spearheaded Intel's initiative to expand its market share in the white-box space. Dallman said he initially wondered if Dell's efforts to sell unbranded systems through VARs would conflict with Intel's white-box strategy, which to a large degree focuses on selling individual components to white-box makers through formal channels. "Then I realized what my real job was: making sure that the guys who build white boxes, the guys who use them and the guys who support the SMBs are healthy and viable, and making sure they have every opportunity to succeed and [become better," he said. "Dell doing a white-box doesn't conflict with that. It just gives them one more choice."

Another strategic Dell partner, Microsoft, also stands to benefit if Dell's white-box strategy helps drive overall software sales. Microsoft executives last week were still trying to gauge the potential impact of Dell's move. "I am not sure what it means," Microsoft CEO Steve Ballmer said. "They are aggressive."

IBM has no plans to enter the white-box arena, according to Leo Suarez, vice president of worldwide product marketing for IBM's Personal Computing Division. "We will continue to innovate our ThinkPad notebook and NetVista desktop lines with functional designs, robust wireless and security options and unprecedented manageability solutions that differentiate it from commodity PC products that exist in the market," Suarez said in a statement. "We will continue our solid relationship with the reseller community and remain a strong supporter of the channel."