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Dell wants greater share of reseller wallet

Dell is focusing on doing more business with its existing partners as it looks to promote its wider range of products and services to the channel

Dell is encouraging its existing partners to sell more of its portfolio as it slows down reseller recruitment to switch the focus on increasing the share of wallet it gains from existing relationships.

The vendor is celebrating its eight anniversary since it returned to the indirect model in Europe and can now boast over 40% of its business globally and more than 50% in EMEA is coming from the channel. In the enterprise market the level of revenues coming via partners has hit 70%.

Aongus Hegarty, president, Dell EMEA, said that it would build on that momentum and carry it through to next year and the economic conditions were improving, with low interest rates and cheaper oil, providing the channel with more opportunities as customers returned to investing more heavily in IT.

"We are together with partners working to build success and we will continue to invest and strengthen the programmes we have. Our portfolio continues to expand and we will continue to broaden that portfolio and expand our capabilities," he said.

The idea of getting partners to engage more with the portfolio was a theme picked up by other executives at the event with Michael Collins, vice president EMEA strategist at Dell, revealing it was a key part of its plans for next year.

The good news is that when you look at the analysis we have done of the capacity across our business...it is actually adequate to drive this business successfully over the next few years," he said.

"We have capacity but what we lack is share of wallet," he added "Our job is to make you do more with Dell. We don't necessarily want more partners now."

The firm is going to focus on encouraging resellers to take more products and it is going to be positioning itself to be seen by the channel "as the most attractive option".

The mechanisms that will be used to drive that change of bahaviour will be through the partner programmes, incentives and educating the channel about the options that are available as a result of the recent acquisitions in areas ranging from security to data protection.

Dell has been actively expanding its distribution network this year, with it now being represented by both Ingram Micro and Tech Data in the UK along with a handful of others, and Collins said it had been a move that had helped it increase its reach into the small business market.

As well as deepening the relationships with partners the other strategic plans involve pushing for a global leadership position in client and x86 servers with the firm using market share figures as a measure of the success.

"We all know that it is not all about market share, it is about our customers and developing their capability that helps them become future ready in terms of IT. But that will be the measurement of my success going forward," he added that both client and x86 were important to Dell.

he added that the market was shrinking and at the same time it had consolidated and there were now just a few major players dominating the client and x86 space and it had its eyes set on overtaking those competitors.

Other planks of the EMEA strategy include improving coverage of the key accounts to make sure that it is reaching key customers and it would make use of more business intelligence to map and segment users to improve its ability to target specific needs. Dell has hired 400 people to support that effort.

"We need to work together to make sure we get our fair share of partner revenue in that space," he said.

He concluded his keynote promising improvements to the processes that Dell provided the channel and said it would make it easier to get quicker support on pricing and billing.

"It is going to take a massive joint effort on our side and on your side. Most of the work is on our side as we are the ones the need to make it easier, more profitable and better to do business with Dell versus the other couple of reasonably attractive options," he said.

This was last published in November 2015

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