Dell Opens Canada Up To Synnex To Generate More SMB Sales

Dell is taking another step to deepen its fast-growing relationship with Synnex, authorizing the Fremont, Calif.-based distributor to sell to Canadian partners starting Nov. 1.

The Round Rock, Texas-based IT titan anticipates the distribution deal will make it easier to reach the lower end of the Canadian SMB market, where Synnex has a strong presence, according to Frank Vitagliano, Dell's vice president for global partner strategy and programs.

"Canadian partners told me they want to have that choice [of working with Synnex]," Vitagliano said. "It certainly make sense for us to do this."

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Dell began using distributors in Canada just 18 months ago, when the country of 36 million people was opened up to Ingram Micro and Tech Data, Vitagliano said. Since then, he said, Dell has worked to initiate supply-chain initiatives, simplify its registration and pricing process, and deliver services more in line with what Canadian partners are looking for.

Adding a third distributor to the mix should make it easier for Dell to reach more customer segments and locations in the vast country, Vitagliano said.

Dell began working with Synnex only in November 2014, when it allowed the distributor to sell PCs, servers, storage, networking, converged infrastructure, software and Wyse virtual desktops to its U.S. commercial portfolio. Synnex at the time also asked Dell to consider authorizing it as a distributor in Canada, Vitagliano said, and discussions have intensified over the past four to five months.

Since the Synnex relationship was brand new, Vitagliano said, Dell wanted to gradually phase in additional vertical markets and geographies. The vendor also wanted to avoid ramping up three distribution partners in Canada simultaneously.

"Canada wasn't an established market," said Vitagliano, contrasting that with the U.S., where Dell has been working with distributors for more than four years. Dell's Canadian business is growing at levels similar to those of its U.S. business, he said.

Although Vitagliano said he expects some Dell partners will switch to Synnex from Ingram Micro or Tech Data, the company is focused on acquiring new solution providers or customers not working with Dell today. He also said he believes the agreement will make Dell more appealing to solution providers that consider Synnex to be their primary distributor.

Mitchell Martin, president of Synnex Canada, said Synnex is primarily focused on SMB resellers that haven't engaged with Dell in the past. The distributor also plans to invest locally to bolster its technical, product management and business development skills around the Dell offering, he said.

The Dell-Synnex relationship has been on the fast track since last November, with Synnex gaining authorization in August to sell Dell products to partners in the federal space. Vitagliano said in April that Synnex was Dell's fastest-growing distributor by a large margin.

Dell has grown its overall distribution business by more than 50 percent over the past year, Vitagliano said in May, and was recognized in September by the Global Technology Distribution Council (GTDC) as the large vendor most rapidly growing its use of distribution for hardware.

Pinnacle Networks expects the pricing and availability of Dell offerings to improve now that they can be sourced through Synnex, which is the company's primary distributor. Custom configuration could take upwards of two weeks to build when dealing directly with Dell, according to Dion Caines, partner at the Paradise, Newfoundland-based company. Pinnacle Networks would love to cut that down to a week or less by working with Synnex, Caines said.

Although Pinnacle plans to continue leading with HP and Lenovo, especially around preconfigured or off-the-shelf offerings, Caines said, Pinnacle could increase its business with Dell if the Synnex partnership is fruitful.

PUBLISHED OCT. 6, 2015