Which Is More Profitable For Dell: A Direct Sale Or An Indirect (Partner) Sale?
Indirect sale is more profitable. Because of the mix of products and solutions we have now, the indirect channel sale is more profitable than direct.
Channel partners are selling more software, more storage, more network, more servers. Right now, there is not a lot of margin with client. -- Michael Dell
The partner has been selling solutions, not specific components, since day one. They are very good at selling all components, but even better at selling entire solutions. The second reason why indirect is better is because solution providers are paid for sales by percent of gross margin. They are incented to drive the most profitable deals. -- Frank Vitagliano