Dell: Bearish Investors, Bullish Partners?
For the second consecutive quarter, Wall Street wasn’t impressed with Dell’s financial performance, but the hardware giant seems to be making continued progress with channel partners. Dell Channel Chief Greg Davis and other team members gave The VAR Guy a few updates today. Take a look.
First, the mixed financial news. Dell on February 18 reported better-than-expected profit and revenue for its fiscal fourth quarter — including an upside surprise of roughly $1 billion on the top line. But on February 19, Dell’s stock slid more than 6 percent as investors worried about Dell’s margins, according to Reuters.
Now, the PartnerDirect channel progress. No doubt, The VAR Guy is hearing from multiple solutions providers about improved relations with Dell. Frequent readers know the Five Nines story, which nearly abandoned Dell a year or two ago because of ongoing channel conflicts. But gradually, Dell listened to Five Nines’ concerns and the solutions provider now has a solid storage relationship with Dell.
So far, so good. But is that an isolated success story? Davis says partners are seeing progress on a number of fronts. In Dell’s most recent quarter, 26 percent of the company’s commercial revenue came from partners. That’s not a huge percentage, but it’s up significantly (from 22 percent) in the corresponding quarter for the previous year.
Also, Davis says Dell trained more than 6,000 people on the company’s enterprise products last year. In terms of partner deal registration, Dell now approves roughly 72% of registered deals. And for certified partners, the approval rate jumps to 86 percent for registered deals, Davis says.
Impressive. But here’s The VAR Guy’s key question: Dell seems to be enjoying progress with VARs that want to sell servers, storage, desktop and mobile devices. But does Dell really want to engage MSPs and VARs that focus on recurring revenue opportunies — like SaaS and managed services?
Davis and other Dell team members say absolutely yes. You’ll find his thoughts on the MSP topic on The VAR Guy’s sister site, MSPmentor.