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Dell simplifies channel incentive structure

Vendor announces several changes as it updates the partner programme for the fiscal year 2023 and looks to make life simpler for its channel

Dell has united its incentive structure under changes to its partner programme, which have been announced as the vendor looks to update the way it works with its channel.

The decision to combine the channel partner ecosystem with OEM and Cloud should make life easier for those partners that operate across different segments.

Rola Dagher, global channel head at Dell Technologies, said the channel model was complex and that there were traditional partners, MSPs, OEMs and cloud players that all delivered value for the vendor.

“We have a robust reseller ecosystem operating in a traditional capex model with impeccable momentum,” she said. “We have emerging and evolving partners co-engineering around OEM, edge and telecom. These partners have positioned us for the future.”

Dagher added that going forward, the partner vision was based on three pillars: trust, maximising customer relationships with more activities like cross-selling and accelerating datacentre advocacy and, finally, to accelerate transformation by enabling a channel consumption model.

She said the firm was addressing market trends and hybrid and managed services with its Apex offering, and it was also aiming to make sure the way it treated partners was flexible and would be operating with a single incentive structure.

“Whether or not a partner is a solution provider, a cloud service provider, or an OEM partner, or a combination of these tracks – they will have one streamlined experience,” she said. “They will be one incentive structure with consistent rebate rates across regions, and one set of requirements across solution provider, CSPs and OEMs.”

Programme changes

Dell has announced several changes to its partner programme:

Solution Providers, Cloud Service Providers and OEM partners get access to one incentive structure, a single tier structure and a set of requirements.

Consistency across selling motions (resell, host, embed) will enable partners to focus on positioning the best solution for their customer, while earning consistent, lucrative, regional incentives, regardless of route to market.

As well as improved storage rebates, the vendor will also simplify competitive swap and tech refresh processes to include server leads, and will expand the new business incentive for the client to include Dell Displays and Client Peripherals.

There has also been an indication that Apex will continue to be expanded throughout this year.

Dagher said that projects have increasingly involved more than one partner, that there was widespread collaboration across its ecosystem and that these changes would make that easier.

“The line between the VARs, CSPs and MSPs are blurring, so there is an increase in projects involving more than one partner influencer when it comes to ISVs that are becoming a part of the overall partner ecosystem. They’re building joint solutions with traditional partners,” she said.

Dagher said that other improvements included improving access to VMware, with license-based sales and rebates now available to all eligible partners. Dell was also continuing to “double-down” on storage with more rebates and incentives for those that sold those technologies, offering 5X tier accelerator for midrange storage and a 2% incremental rebate for acquisition and Tech Refresh opportunities.

“With these updates we are streamlining the partner experience because we believe it is all about the partner experience and helping our partners grow and transform right alongside with us,” she said. “These updates will unlock massive opportunities in that $1.3tn addressable market we’re all seeing.”

Dell provided some responses from UK partners, with Graeme Watt, CEO of Sotfcat, agreeing the changes would increase opportunities for partners.

“As a Dell Technologies Titanium partner, we are well positioned to take advantage of growth that’s faster than the market in areas like as-a-service and multi-cloud,” he said. “We see incredible opportunity to win new customers and serve existing customers in new ways as Dell’s portfolio expands and its programs evolve with even more lucrative incentives across enterprise infrastructure and client solutions.”

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