Dell is continuing its focus on the Channel with a $26 million investment in IT improvements. This investment is part of the $125 million channel investment that was previously announced last fall at Dell World.
This investment will improve the online and offline order experience and enable selling through distribution. Included in these improvements are deal price and quote automation, partner order tracking, registration automation, increased services capabilities and improved warranty terms in its ProSupport program. Later in the year, there are also plans to upgrade and expand the “Find-a-Partner” tool that helps locate a Dell Partner near you.
Dell listens to its partners and customers and we continue to make changes and improvements based on their feedback. In the last year, we rolled out a Deal Registration Mobile App and have heard from partners on how this tool has advanced their productivity and sales efforts to register deals ahead of their competition. We’ve also heard that the app helps them sell Dell solutions to customers easier due to access to best-selling product information and purchases through a one-click feature. Additional Partner Portal enhancements driven by partner feedback include Solutions Configurator updates and the launch of a Partner Marketing Platform. These initiatives have all been put in place to simplify and improve the partner experience, which in turn, helps our customers.
With over 40% of Dell’s global revenue coming from the channel (up from ~30% pre-LBO), we are focused on using partners to drive share of wallet, particularly in the enterprise space. In Q1 we had a record high in deal registrations with ~90,000 deals registered globally and a record high in rebate payout as it grew +60% Y/Y.
To help continue our excellent growth, we are providing additional discounts, rebates and incentives for our partners through programs which were introduced in Q1. For example, our Greenfield discounts program rewards partners for acquiring new business. With these discounts on Client, Storage, Server and Networking, we were able to close deals with 3,200+ accounts. We also added rebate accelerators for certified partners, which led to 300+ partners earning discounts based on Y/Y sales growth in select product groups.
We believe that our PartnerDirect channel program is differentiated through our comprehensive partner enablement, ease of doing business through simple programs and processes, access to end to end solutions, and partner profitability. Through this differentiation and continued investment, we expect our Channel business to continue to grow.
For more information on partner resources visit the Dell PartnerDirect site and check out the recent article on our Channel investments at CRN.com.