Dell Layoffs, Exec Changes, New AI And Go-To-Market: 5 Big Things To Know
From big to small, Dell partners have told CRN that the changes are moving the Round Rock, Texas-based worldwide leader in servers and storage closer to their businesses.
Since the curtain closed on July, big changes have been rolling out at Dell Technologies with a new command structure, a new go-to-market, new generative AI offerings — then earlier this week — layoffs.
CRN has been talking with Dell partners to gauge their reaction to the announcements and from big to small, partners have said the changes are moving the worldwide leader in servers and storage closer to their businesses.
The change in go-to-market comes after Round Rock, Texas-based vendor’s first quarter sales were off by 20-percent, with its market-dominating storage products off 11 percent. Starting on Monday, Dell now offers its direct sellers higher compensation to move storage deals through the channel.
“We’re taking the gloves off,” Dell sales boss Bill Scannell told CRN.
Dell Titanium partner at Somerset, New Jersey-based Melillo CEO Scott Dunsire – a former HPE channel chief – called it “genius.”
“I haven’t seen a move like this in a long time, if ever, and I ran channels at HPE for 12 years,” Dunsire told CRN. “Dell has just been getting better and better and better at engaging partners ... This is a genius move, from my perspective, to send the right message to the team at Dell. ‘Hey, we’re serious about working with partners. You want to get paid more? This is what you have to do.’”
The new sales motion, however, came with layoffs to Dell’s sales force as it ropes more partners into those deals.
“We don’t make these decisions lightly,” the company said in a statement.
Dell stock has moved higher amid the tumult, with shares closing at $52.92 on August 31 and rising to $55.54 in early afternoon trading on Wednesday.