June 2008 - Dell Channel Blog

It seems to me that one of the things Dell does really well is listen to customers. So as I enter my fifth week working in the Dell channel, I’m starting to see why we developed the kind of channel program we did.

What I’ve heard is this: It is harder than ever to be a channel partner with most companies. The average channel program is complex, hard to manage, and difficult to track. There is some hesitancy in sharing deals, because you never know if your vendor will undercut you. And since everyone sells the same brands, the price wars are having a real impact on profitability.

So you’re asking for a program that is simpler to administer, that lets you spend less time on the program and more time with customers. You want your vendor to help win more deals, not compete with you. You want your vendor to work to increase your profitability and efficiency. And you want the coolest brands with the latest features.

Do I have this right? Am I missing anything?

A while back we did a blog post and a podcast about iSCSI as an enabling technology for storage in a virtualized world. (For the uninitiated, here is a link to some info on it.). Dell is hot for iSCSI because it presents one of the few sane ways to make storage infrastructure cost effective in virtualized, or even non-virtualized but distributed environments.

Now that I live in the channel world, and I can see what a great opportunity EqualLogic represents to the channel. So it makes sense to evangelize the story here too.

Shortly after the close of our EqualLogic acquisition in late January, Dell began worldwide delivery of the Dell EqualLogic PS5000 Series to meet customers’ growing demand for affordable, easy-to-use storage solutions. Check it out and let me know what you think.

Can this be right? After more than a year of dodging the EOL bullet, Microsoft Windows XP finds itself square in the iron sights of its long and harshly debated successor, Vista. The curtain has fallen, and the credits are rolling, but how does the crowd feel about the show? Or better yet, what do they think of the sequel?

It’s been a good run for XP, who’s been touted as the longest shipping (2001-2008) and most widely accepted operating system Microsoft has put out to date. It’s also, as far as I can remember, the only OS that’s actually created a public outcry, endorsing its temporary pardon from joining the inevitable resting place of Windows 95, 98, 2000, etc… But as they say, all good things must come to an end, and it’s an end that XP has finally found.

With rumors of Windows 7 visible, but not quite distinguishable, on the horizon; Vistas victory over XP may be short lived, although you’ll have to stay tuned for more on that one. In the mean time, is there an option for those business users who aren’t quite ready to say goodbye to XP? Yes, two actually. The first is basically a “loophole” in the Microsoft licensing agreement that allows for downgrade rights. The short version is that Dell can sell what we’ve branded “Windows Vista Bonus” which allows us to preinstall XP Professional with a Vista license (on select system categories). This lets customer’s upgrade to the Vista platform when they’re ready. And yes, Dell will support both OSs. You’ll find more on the subject here.

The second option, which is the good news for the channel, is that if you utilize our CFI process for your customers, nothing changes. XP will still be available as an image to roll out on new systems.

Microsoft is scheduled to transition XP to EOL status on June 30^th, 2008. The last day to order a system pre-installed with XP from Dell will be today, June 26, 2008, in order to allow for building and assembly of the system and stay in accordance with Microsoft’s licensing policies.

In a cross-functional channel meeting, this Payment Option announcement was noted. I wanted to post it here for those not familiar, not on the distribution list or those who may have missed the email.

You’re probably feeling it- business credit has seldom been tighter. Over the past few months, we realize the other sources of credit are decreasing such as those of traditional banks. For those new to the PartnerDirect program or for those who may have overlooked this, Registered and Certified Partners may take advantage of its open credit terms with Dell.

Why Look Into this?

Partner Benefits Include:

· No payment for 30 days for approved Registered partners in PartnerDirect. Qualified Certified partners are eligible for net 45 day terms

· Increased cash flow by freeing up credit cards

· Build history with Dell to receive credit on larger opportunities when they arise

Flooring as an Option

In addition to open credit terms, Partners can also utilize flooring. Flooring accounts can be used across multiple vendors. Flooring serves as a revolving line of credit with limits starting at a minimum of $50K up to Millions based upon Dell’s Financing Partners requirements and qualifications.

Additional Questions

If you have additional questions regarding open credit terms or other payment options, please contact your Sales Representative for more information.

Designing great products always makes people happy here in the home office. But what is even better is when others recognize them. Take the Third Annual ServerWatch Product Excellence Awards, for example. Even with more competition in the small business server category, the Dell PowerEdge 2970 2-socket took the top honor again.

As we said in an earlier blog post and podcast, our server strategy isn’t rocket science. Just find out what customers want and make it. But don’t think that I’m patting Dell on the back too much. We still have a lot more work to do. Your ideas, below and on IdeaStorm, will help keep us focused.