Daniel Serpico, president and CEO of FusionStorm, Dell's SMB Partner of the Year for two years in a row, has been a partner with GE Capital for the last 10 years. The San Francisco-based solution provider is excited to receive financial incentives from GE Capital through Dell, said Serpico.
"This is a clear indication of Dell really embracing the channel, seeing value, and now it's an enormous value for us in the channel," said Serpico. "It's access to capital, larger lines of credit and to sell more Dell products -- it's that simple."
Currently, FusionStorm doesn't use local or big banks for loans or financing for their business, and through this incentive, the company's ability to finance and make investments will grow business, said Serpico.
"We don't have to [use banks] because of GE Capital; they fill the role of a bank and offer a far greater scale and more flexibility," said Serpico. "We have access to capital, which allows [FusionStorm] to make investments in other things, and recently we invested in new software automation in supporting Dell stacks, for building Dell racks."
Wells Fargo will also be providing 60-day financing terms to Dell channel partners, giving resellers visibility to their account, invoices and customizations, said Steve Hopkins, division manager of direct supply chain at Wells Fargo.
"From Dell's perspective, it's to drive liquidity in the channel and to maintain control over the credit terms, and it strengthens the buyer's loyalty with the channel, which is the biggest part," said Hopkins. "It's further proof of their commitment to the channel, providing this wonderful source of capital for Dell resellers."
An additional financing incentive from Dell also includes offering channel partners zero-percent leasing on Dell EqualLogic and Compellent technology storage equipment, said Dell's Fedorowicz.
"This is a program that we offered to business customers direct with Dell, which means they pay for 36 months, and at the end, they own the equipment," said Fedorowicz. "They effectively pay a zero-percent interest, and the purchase price is what they pay in 36 equal installments. We've extended this program, which has been highly successful with our end-user customers through our channel partners."
For the future, Dell plans to expand its service and channel partner program to 20-plus countries, including Europe, the Middle East, Latin America and Asia, later this year, said Dell's Cook.
"The channel is an important part of our business today, and we have these opportunities to accelerate our growth and help our partners with growth ambition," said Cook. "We want to expand beyond our U.S. roots and be a global service provider."
PUBLISHED FEB. 6, 2014