Dell Shares

Today, Dell announced it will begin using Ingram Micro Inc. and Tech Data Corporation in the U.S. and Canada to sell Dell products to small and medium businesses.  In addition to retail, system integrators and value added resellers, customers now have the choice to use two distributors with whom many partners are already engaged.  The initial offering will consist of pre-configured Dell systems which will be competitively priced with similar products available directly from Dell.  Currently, these systems include Dell Vostro desktop and notebook configurations in addition to select Dell peripherals. There are plans to broaden the product availability in the future. 

So why are we doing this?  In response to partner feedback, Dell is expanding its partner program by providing multiple routes-to-market:  direct, PartnerDirect, and distribution. This change offers another solution for partners that have immediate business needs.  Customers seeking specific technology requirements will still have the opportunity to take advantage of Dell's build-to-order product line through its PartnerDirect program.    This partner expansion is another demonstration of Dell's ability to be fast and flexible and continuing to provide value to our customers.

How does this fit into our strategy?  Dell's growth strategy involves reaching more customers worldwide, including expanding our relationships with value-added resellers and distributors.  We are committed to create efficient solutions and product leadership across all of our businesses.  In May 2007, Dell announced the company would explore new ways to reach customers.  This led to the inception of the PartnerDirect program, which has grown to a global business with more than 35,000 registered partners worldwide.

Our current indirect business generates more than $12 billion of Dell's run-rate annual revenue.  We expect this new route-to-distribution to provide another vehicle where customers can choose Dell as their solution.  In February, we reported on the growth of this PartnerDirect program.  We've seen a lot of progress in our PartnerDirect program and will continue to pursue opportunities that create valuable customer solutions and offer long-term growth.  For more information on today's announcement, check out Greg Davis' blog and vlog, where he discusses PartnerDirect and our new distributor partnership.