Dell Channel Blog

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.

As part of Dell’s commitment to our Channel Partners, we are pleased to announce the launch of a Return Policy program, available to our current Certified Partners.

Pilot Program Terms & Conditions:

• Product can be returned within twenty-one (21) days of Dell shipment for a credit (excluding S&H charges) for the following reasons: Any reasons covered under Dell's Limited Warranty, or End-user order cancellation or modification (requires documentation from end-user).
• Return policy is for U.S Certified Partners participating in the Dell PartnerDirect Program only, and does not include U.S. Registered Partners or Canadian Registered or Certified Partners.
• Except for cases of Dell error, returns can be subject to a restocking fee.
• Dell does not provide credits for portions of packaged, bundled or promotional offerings provided at a single price.
• Partner must contact us directly before they attempt to return Product to obtain a Return Material Authorization Number, that will be included with the return.
• Partner must return Product to us in its original or equivalent packaging.
• Partner is responsible for risk of loss and shipping and handling fees for returning or exchanging Product.
• Additional fees may apply, if you fail to follow the return or exchange instructions and policies provided by Dell.
• Partner is responsible for Product that is lost, damaged, modified, or otherwise processed for disposal or resale.
• At Dell's discretion, credit for partial returns may be less than invoice or individual component prices due to packaged, bundled or promotional pricing.
  
  Return Policy Exclusions:
  -- Application software and operating systems that have been installed by Dell may be returned only if installed on a returnable system, and only if you return that system within the applicable return period.
  -- Dell EqualLogic and EqualLogic-branded products.
  -- Dell|EMC and EMC-branded products.
  -- PowerVault ML6000 tape libraries, non-Dell-branded enterprise products, enterprise software, and customized hardware or software products may not be returned at any time.
  -- Software licenses purchased under any type of volume license agreement may be returned only with the express approval of the publisher, which in many circumstances will not be granted.
  
  

For more information, please contact your sales representative. 

Let us know if you have any questions regarding this new policy and we’ll be happy to answer them!

It’s very important, in our channel community, to represent our Partner’s voice via their idea generation, commentary, feedback and business successes. Starting today, we’ll begin featuring different Partners who are achieving success and growth with PartnerDirect.

First up is Rev2 Technologies based in Santa Clara, CA., who used Dell’s nimbleness for its own growth and business opportunities. By relying on Dell’s quick response and technical expertise, Rev2 Technologies achieved:

• A 65% increase in repeat business
• A 75% increase in Dell server sales
• And 55% more deals won

Since becoming a Dell Partner, they’ve registered about 25 deals and stated that Dell has been open, truthful and has worked through any conflict that has arisen.  In addition, Rev2 stated that Dell was a complimentary partner who shared a common interest in the complexity of data centers today including; security software, virtualization and green initiatives.

By choosing a reseller program that offers less complexity & bureaucracy, Rev2 was able to present more solutions faster with streamlined ordering and flexible financing. Read more about Rev2’s story and about the challenges they’ve been able to overcome, as they noted, “being an IT services-provider in Silicon Valley isn’t easy.” After reading, please feel free to share your story with us.

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?

Q: Why choose Dell?

A: Because our Partner Direct program is designed based on partner feedback. Partners like the advantages the direct model can provide—single point of accountability with the manufacturer, custom factory configuration, and delivery options—because it helps increase profitability for them. We also make doing business with Dell easy for our partners with a dedicated partner support, e-commerce and an online partner portal and resource center. Finally, we provide flexible financing options to meet the working capital needs of our partners. All of this direct from Dell to the partner.

Q. You’ve been in this role for eight months now… what can our partners expect over the next eight months?

A: We will continue to listen to our partners and expand our program and benefits based on partner feedback. We are adding a new desktop desktop/remote management capability, powered by Everdream, to our managed services certification path. We expect to expand the program to Mexico this fall. We also plan to add new certification practice areas to PartnerDirect, giving our partners more options to grow both their businesses and their relationship with Dell.

Q: You talk to partners daily. What are they telling you?

A: What I am seeing is that most of the solution providers have really evolved their businesses. They have gone from just reselling hardware to becoming their customers’ IT department. Solution providers now have a different perspective to servicing their customers. As the IT department, solution providers care more about how utilizing Dell can eliminate cost and improve up-time for their customers. Service and support from their vendor is vital. Partners want to simplify IT for their customers, and this is Dell’s value proposition.

Q: Bloggers such as Josh Clifford have questioned Dell’s protection of the channel while building out our direct market. What peace of mind can you offer them?

A: When we launched PartnerDirect on December 5, it included deal registration for our registered partners. Since that time, we have approved over $200M in deals with our partners. Eighty-two percent of the deals submitted by partners through deal registration have been approved. With registered deals, we work very closely with the partner to ensure they own the deal and we collectively win the business for Dell through the partner who invested and brought the deal to us.

Q: HP & IBM have publicly stated that they plan to satisfy their mid-market objective almost uniquely through business partners. Dell already has a direct business that targets the mid-market. Is PartnerDirect targeting the mid-market, and if you are, how are you balancing PartnerDirect's approach against that of Dell's direct SMB/mid-market approach?

A: This is an example of providing the customer choice. We have partners that participate with Dell in SMB/mid-market. Many customers prefer to work with Dell directly, while others prefer to utilize a channel. The best way to balance that is to have an integrated approach with multiple routes-to-market. We want the customer to have choice, and we want them to choose Dell. Having a multi-pronged strategy for doing business with Dell is the best way to achieve this goal.

Q: What do you believe is the biggest competitive advantage VARs get from Dell's Managed Services certification? From Dell’s Enterprise Architecture certification?

A: First, let me state that managed services is a growing trend in the channel, and that Dell is the only Fortune 100 technology company to offer a formal managed services certification path for partners. Since our platform is hosted in a Dell data center and Dell is responsible for its performance and availability, we eliminate many of the costs and risks associated with legacy managed services platforms. In the future, Dell will also deliver MSPs new sources of managed service revenues through MessageOne and other components that will be made available to partners in a “white-box” version they can brand as their own.

In terms of Enterprise Architecture—Ease of doing business and competitive storage products are reasons partners want to certify with Dell. Partners also want to invest in our solutions such as storage, data centers, virtualization, security or power and cooling. PartnerDirect provides enhanced financing options, increased access to deal registration, deeper discounts on products and services associate with approved deal registration. We have dedicated field demand generation activities that are available for partners to help them as well as reduced prices for demo equipment.

Q: How are you demonstrating that you are listening to partners and acting on their feedback?

A: I think the ultimate evidence of listening to and acting on partner feedback is PartnerDirect. We built this program on partner feedback. Based on feedback from thousands of solution providers, we developed new features for channel partners including a partner portal—www.dell.com/partner—partner logos and marketing materials, 100-percent dedicated sales and customer care, certification paths and training, credit options, and deal registration serviced by Salesforce.com partner relationship management tool. Going forward, our commitment is to continue to listen and make changes as needed to meet the needs of our partners.

Q: Greg, do you have any closing thoughts you would like to share with our Channel Community?

A: We’ve taken the first steps on what promises to be an exciting journey. Step-by-step, we are building a relationship with the channel. We are committed to listening to our partners and evolving our program and benefits based on their feedback. Success will take time, and we appreciate the support we have received from the channel thus far. I’m proud of what we have accomplished to date and look forward to continuing to build a world-class partner program.