Dell Set To Triple Server Partner Perks

Dell said it plans to deliver a bit of channel holiday cheer. It will beef up partner perks in an attempt to drive server and client PCs sales well into 2015. The move comes as end-of-life XP replacement sales taper for computer makers and Windows Server 2003 replacement sales are set to grow, analysts said.

According to Dell, partners will receive the new partner incentives that involve its Partner AdvantEdge program. The increased incentives include:

* Triple Partner AdvantEdge program points for server sales by Premier and Preferred partners

* Double Partner AdvantEdge program points for client PC sales (OptiPlex, Latitude and Venue systems) by Premier and Preferred partners

* Registered partners eligible to participate in the Partner AdvantEdge program for client PC and server sales for the first time ever.

Dell's Partner AdvantEdge program is a reward program that lets partner sales representatives earn points directly from Dell for selling products and services. Partners can redeem points with Dell for vacation packages and other items, such as consumer electronics.

[Related: Dell To Pump $125 Million Into Channel, Says Partners Now Drive 40 Percent Of Global Revenue]

The only catch in those perks is that Registered Partners must have done $25 thousand in revenue in the preceding quarter to take advantage of the this incentive program.

Dell said the triple and double points had no expiration date and, at this point, are essentially the new "normal" for partners.

"This is great. It shows Dell's commitment to the channel and its pledge to work with partners," said Michael Goldstein, president and CEO of LAN Infotech, a Fort Lauderdale, Fla.-based Dell partner.

Dell has been piling on the incentives as the company celebrates its one-year anniversary as a private company. Last month at its DellWorld conference in Austin,Texas, the company pledged $125 million in partner incentives for 2015 as part of its plan to turn up the heat on competitors and grow Dell's storage, data center and PC business over the next year.

Cheryl Cook, vice president of global channel alliances at Dell, told CRN the increase in points tied to Partner AdvantEdge program is over and above the $125 million.

"The goal is to continue the rate of growth we are seeing in servers and PCs, and continue the share gains we have been seeing," Cook said. "Our performance [is] outstanding, and we want to continue that momentum -- and even increase that momentum."

According to Gartner research, Dell ranks No. 2 in worldwide shipments with a 19.4 percent market share behind Hewlett-Packard (22.5) and ahead of IBM (6.8) and Huawei (3.7). When it comes to client PC sales, Gartner reports that Dell also ranks No. 2 in terms of U.S. shipments, earning 24.1 percent market share behind HP (27.8) and ahead of Apple (14.3) and Lenovo (10.5).

"They had to do something," said Jeff Purcell, owner of Purcell Consulting Group, a Denver-based Dell Premier Partner. He said that procurement costs for PC, coupled with razor-thin margins, have made selling desktops and laptops a zero-sum gain.

"Client PC business is just not something I rely on," Purcell said. "I can get better pricing and faster delivery of goods when I buy at the MicroCenter right across the street from my office."

Purcell said the Partner AdvantEdge program wasn't a relative Dell incentive for him personally, however he said he hoped it would soon become more relevant as his points quickly multiplied.

PUBLISHED DEC. 4, 2014