Dell Exec: 'Millions' Invested So Far In Channel

Dell is following up its new channel strategy and has invested "millions" in dedicated sales resources, a top sales executive of the Round Rock, Texas-based PC maker says.

The company has also begun to work closer with solution providers to offer financing options to end users, said Chris Bates, director of Dell's Solution Provider Direct program. Weeks after Dell Chairman and CEO Michael Dell said the company would openly embrace sales through the solution provider channel as it looks to rebound from a difficult 2006, Bates said the PC maker is hearing upbeat responses from value-added resellers but still has work to do.

"Current and potential channel partners are telling us their customers want Dell products and that they see value in building a relationship with Dell," Bates said. The Round Rock, Texas-based company continues putting together details of its forthcoming Dell authorized partner program and deal registration mechanisms, and has already targeted big investments in building a channel-facing sales force at the once direct-only company.

"They're pleased with the millions of dollars we've invested in sales resources solely dedicated to serving them," Bates said. "We're also hearing that they like the fact we're listening to them and making investments and changes based on their needs and feedback."

Dell executives have said they would dedicate and grow a sales force to focus on indirect channel sales, and some solution providers who had previously been doing business with Dell say they have already begun receiving more contact and cooperation from the company as a result. They have also suggested the company would provide synergy between their channel sales strategy and Dell's financing capabilities, which includes its $6 billion Dell Financial Services joint venture.

Bates acknowledged hurdles still remain. Dell has heard from skeptics, in the channel and elsewhere, that it can pull off a major expansion of its channel strategy after slowly and quietly building a $4 billion, annual revenue stream from its North American commercial solution provider efforts. Some solution providers are also adopting a wait-and-see approach to Dell's new retail strategy, where it recently announced specific SKUs of desktops and notebooks to be sold via Wal-Mart and Sam's Club stores, respectively.

"Hopefully, Dell will make it clear the value of business-class models versus retail models," said Steve Seaforth, director of business development at Advanced Office Systems, a Cromwell, Conn.-based solution provider and Dell channel partner. Seaforth, whose company has worked with Dell for the past several years, said the addition of more channel-dedicated sales resources by the PC maker will be a plus.

"We probably will be doing much more because of the changes they've made," Seaforth said. Of late, he said, "with Dell making that investment, more information is coming, more details are coming" about products, pricing and other business details. "It's worked in our favor," he said.

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