Dell CEO Talks Up Channel Support In Government

In the wake of announcing partnerships with 10 small-business government VARs to target the federal market, Dell CEO Kevin Rollins said in today's afternoon keynote at Fose that partners are a key aspect of the company's public sector strategy --- though chosen wisely.

Dell has long touted its direct model of doing business, and VARs have long beaten the company up for it. But that all changes with government, Rollins said.

"Government more than any other sector is where Dell works with integrators," he said. "Where we've had a rub is with resellers that are just that: resellers. When they only offer product, government pays too much of a markup."

Furthermore, Rollins warned government and enterprise alike against relying too heavily on outsourcing as a strategy, saying that agencies need to keep core competencies -- data centers and application management, for example -- close to the vest.

"Outsourcing is useful, but only in narrow and guarded and contained areas," he said. "You don't outsource things that are very strategic."

Instead, IT functions, such as help desk and professional services, can be handed to the private community; partners can fill those specific functions and also offer a government-tailored expertise that Dell is interested in.

"What we seek is the true integrator who add a value to the government," Rollins said. "To them, we are a best friend. To just the reseller, no, I suppose we are not a good partner."