Over the last one year, Dell Technologies has revamped its relationship with its channel partners through a number of initiatives. The vendor has realigned the investments of its channel partners and their capabilities with its own solutions through a process of technical planning. This has enabled the partners to act autonomously in the market place.
Dell Technologies has simplified its rebate structure by moving away from quarterly targets and becoming more focused on their long-term relationship and business. “It is leading the partner versus managing the partner,” says Vangelis Lagousakos, General Manager, Channel Sales, Middle East, Russia, Africa and Turkey, Dell Technologies.
Dell Technologies has also reduced the number of global zones from 10 to 5, while making the rebate structure more relevant for all the countries in the same global zone. The vendor has also streamlined the process of preparing quotes, pricing, and the configuration of ordering, making it easier for channel partners to do business. It has made deal registration more transparent in the pricing and front-end discount, improving the predictability and profitability of the partner.
In order for channel partners to grow faster, the vendor has added rebate multipliers into various offerings around digital transformation and the datacentre, including blade offerings, four-socket, and professional work stations.
According to Lagousakos, the number one priority for all channel partners is acquiring new business. “We are incentivising and this is a major priority for us.” With the focus around data, storage, and the data centre, there is also an incentive for channel partners to swap out competitive products from the data centre.
Other areas of innovation where channel partners are being encouraged to focus on are workload support for artificial intelligence and machine learning, autonomous infrastructure, managing data at the edge, and advanced cloud innovation. While Dell Technologies has a significant presence and share of technology across regional enterprise and commercial customers, there is still an opportunity for it to grow. Lagousakos, indicates that there is also an opportunity to grow in the mid-market.
The arrival of the global pandemic and its impact on global supply chains was an industry wide challenge. Dell Technologies was also impacted in the short term. However, the process of recovery and bringing the supply chains back to normal was through prioritisation.
“In other words, providing a prioritisation to the community and to the customer, in a way that we are impacting the lives of people in this Covid situation,” says Lagousakos. Through the pandemic crises, Dell Technologies has been close to its partners, helping them in the sellout process and identifying what kind of funding they can be provided through distributors of Dell Technologies.
Partner stimulus package and payment flexibility programme
- One-time cash payout for up to 50% of current partner Market Development Fund, Business Development Fund balance, for use towards future marketing activities. Upon approval, partners will receive immediate payment up front, freeing cash flow, offering flexibility and providing the time value of money.
- For metaled solutions providers, offering fee-waived Services Deployment training for Unity XT, VxRail and DP4400, ensuring that eligible partners continue to build capabilities during this time.
- Introducing new team-based pricing options for solution providers to make all training more affordable for our partner teams.
- For distributors, removing 1H FY21 client solutions growth targets and increasing base rates to improve predictability of earnings. This is aligned with removal of target-based programmes for solution providers announced previously as an effort to simplify and improve earning predictability in the rebate structure.
- Extended unspent earned MDF and BDF, scheduled to expire March and July.
Payment flexibility programme from Dell Financial Services
- Dell Technologies extends $9B in financing and 0% interest rates
- Payment Flexibility Programme on the foundation of Dell Financial Services and Dell Technologies’ end-to-end portfolio.
- 0% interest rates for Dell Technologies server, storage and networking solutions.
- Defer first payment up to 180 days on data center infrastructure and services to help manage cash flow.
- Short term options for remote work and learning with 6 to 12-month terms and refresh options for laptops and desktops.
- One-year term to flexible consumption offerings in the Dell Technologies On Demand programme.
- Scale usage of Dell Technologies including converged, hyperconverged, hybrid cloud, storage and data protection solutions and pay for what you use.
- Flex on Demand is also available from three-to five-year term options.
- Partner with VMware to deliver flexible payment solutions supporting digital transformation.
Working Capital Solutions
- Partners are already familiar with the Working Capital Solutions programme, supporting more than 1,500 partners across 74 countries.
- Through Dell Technologies’ preferred financing vendors, resellers and distributors are offered most favorable payment terms, as well as increased credit capacity and simplification of partner accounts payable management.
- Working Capital Solutions complements Dell Financial Services.
- Partners whose end customers use Dell Financial Services may receive payment in as quickly as two days.
- If partners are using Working Capital Solutions, partners who qualify can benefit from 60 to 90 days payment terms extension to pay their financing vendor.
- Working Capital Solutions offers flexibility for partners to extend up to 120 days from the invoice date, subject to financing vendor approval, for an incremental fee negotiated with the financing vendor, providing adaptive liquidity solutions.
- Working Capital Solutions enables partners to win bigger.
- With Working Capital Solutions, partners can meet end user demand for longer invoice payment terms. With a range of 60-90 days for qualifying partners, the partner cash conversion cycle can be fully tailored to mirror the payment demands of their end user.
Dell Financial Services
- Dell Financial Services has been leading in technology payment solutions for the last 22 years.
- Dell Financial Services originations increased 16% year over year to $8.5B in FY20.
- Dell Technologies has been delivering flexible consumption solutions to customers and channel partners for more than 14 years.
- Dell Financial Services consumption-based offerings are now approaching over $3.5B in assets under management.
- Dell Financial Services knows that customers need technology right now, but many organisations need flexible repayment terms, and partners may need help managing cash flow or end-user credit risk.
By Arun Shankar