Dell EMC aims for $70b in channel sales in 2019

Dell EMC channel chief Joyce Mullen has outlined the company's 2019 channel roadmap (Image Dell EMC)

The Dell EMC Global's broadcast on its 2019 channel roadmap revealed the tech giant’s plans for their channel partner ecosystem for the next twelve months.

Joyce Mullen, president, global channel, OEM & IoT at Dell EMC; Bill Scannell, president, global enterprise sales and customer operations, Dell EMC along with other senior executives provided extensive details of the company’s momentum in 2018, launch of Dell EMC Partner Program 2019 and the win-win partnership of Dell Technologies and its channel partners.  

It has been two years since Dell and EMC officially combined to form Dell Technologies, and of course, the Dell EMC Partner Program. “We’ve accomplished so much in that time because of our channels. We are now kicking off what’s going to be the very best year yet for Dell Technologies and its channels,” said Joyce Mullen, global channel chief of Dell EMC.

The year 2019 will witness 5G come to life, edge computing kick in to high gear and Gen Z enter the workforce, she said. “Machine learning and artificial intelligence will follow us to work, with PCs and devices learning from our habits, and proactively booting up the right apps and services at the right time. It’s the year of the data driven digital ecosystem when we’ll continue to unlock the power of data in ways we never imagined,” said Mullen. This year, every organization needs to be a digital organization powered by data, running in a multi cloud world with the data goldmine sparking the next gold rush in tech investments.

With tech shifts and massive opportunities in the marketplace, customers will look to channels as a trusted advisor seeking channels’ intimate knowledge of customer’s environments, their industries, and their businesses to drive digital transformation. Dell Technologies has the expertise, portfolio, plans and the determination to win big with channels, she added.

“In 2019, we will continue to be on our quest to be the very best in the eyes of our partners. I have said before that we have big ears at Dell and we have been working on improvements in the areas partners told us were most critical to them. The 2019 Dell EMC Partner Program is a product of channel feedback from Dell Technologies, which has the broadest portfolio in the world, and a commitment to keep on innovating,” said Mullen on the road ahead for channels.

The key strategic priorities for Mullen have been to make it easier for channels to grow their businesses with Dell EMC. Another priority is to fast track channels’ ability to deliver transformational solutions, taking advantage of all the capabilities that Dell Technologies family of brands offers, she added. Embracing and monetizing emerging technologies, which will continue to empower channels today and tomorrow will be a focus area too, according to Mullen. 

Flashback 2018

Mullen shared stats highlighting the growth rate of Dell Technologies in 2018. “We spoke about US$43 billion business in the channel for Dell Technologies. Over the past 12 months, Dell Technologies’ global channel has delivered over US$49 billion in orders, which means that channels have grown their businesses with us by US$6 billion. We are so close to the US$50 billion goal we had envisaged last year,” she said.

She thanked the channels for their commitment, feedback and the hard work they poured into the business. The aim now is to move onward to achieve US$70 billion in channel sales, said Mullen.  

She highlighted that the momentum in Q3 was phenomenal as the order revenue in the channel was up by 21%. “Distribution order revenue was up 19%. We saw an increase of 13% in client solutions. Server was up by 38% and storage in the channel is growing 12% year on year,” she added. 

Dell Technologies also saw significant growth in services, as the partners brought in 15,100 brand new customers or reactivated customers. The average number of lines of business, (storage, servers, networking, etc.) being sold by our partners was up by 10%, which is a testament to the investments channel partners are making in our business, she mentioned. 

Bill Scannell, who helped develop and implement the Partner Preferred Program for Dell EMC, agreed that 2018 was a phenomenal year for Dell Technologies “In the first three quarters of last year, we grew our enterprise business over 25%. Our strategy around digital transformation, IT transformation, security and workforce transformation is resonating really well with all channels, but more importantly, with all of our mutual customers,” he said.  

He added, “Michael Dell always said we’re no. 1 in everything, and it’s never been truer. We are no. 1 in storage with over 30% market share. We’ve now become number one in servers (in both revenue and units), surpassing HPE last year. We’re number one in virtualization, whether its server, storage or network virtualization, and also number one in purpose built backup devices. And we’ve had 24 consecutive quarters of client growth.” 

2019 Dell EMC Partner Program

The much awaited 2019 Dell EMC Partner Program was unveiled during the partner broadcast. “The program requirements and benefits will remain true to our core tenets of simple, predictable and profitable. Channels will not expect major changes - just several refinements in areas that channels told us were most important to them,” said Mullen. 

New competency: Specific to solution provider track as a refresher, Dell EMC Partner Program has 3 tiers – Gold, Platinum and Titanium – with requirements for each tier being simple - total revenue, services revenue and training. Last year, based on partner feedback, Dell EMC simplified the training requirements down to 1 competency for Gold, 2 for Platinum and 3 for Titanium (as simple as 1, 2, 3).

This year, services delivery competencies will count towards program requirements. Earning any product, solutions or services delivery competency will count towards next year’s competency requirements. New competencies in training will be launched throughout the year including a new Data Analytics Solutions Competency. For Gold tier, the number of individuals required to complete training has been reduced to half for Zone 1 across all regions. To move from Authorized to Gold tier, only one sales and one system engineer is required to complete the training.
    
Revenue requirements: The requirements have been simplified down to a single revenue path - the requirement to sell multiple lines of business has been removed. Partners are overwhelmingly taking advantage of selling across the full portfolio and reaping significant financial benefits. Reducing it to a single path makes it simpler to navigate channels’ way to tier attainment. With the importance on storage, data protection and HCI by Dell EMC, the program now extends the tier credit multipliers throughout 2019, which will help channels accelerate their status in the program. Each dollar of storage and data protection revenue will count 3 times to a tier credit, and hyper converged infrastructure revenue will count 1.5 times. 

More money: The program continues with the current rebate structure, with the opportunity to earn base rebates as well as additional incentives for growth, services and acquiring new customers. Product competencies are required to earn big base and growth rebates for those products and thus maximize channels’ financial payouts. Services rebates are also earned back to Dollar 1, and are paid not only on the services revenue, but also on the product revenue when attaching three or more years of pro support or pro support plus. 

New business incentives are rewarded for bringing new customers to Dell EMC and for expanding into new lines of business with current customers. The new business incentive rebate will not require a claim process in any region - all four core program rebates will be automatically tracked and credited. 

Dell EMC program is extending the mid-range Tech Refresh and competitive swap rebates for storage in 2019, to fuel partner profitability. Tech Refresh provides an incremental rebate to reward sales on the replacement of eligible entry in mid-range storage with additional storage products such as PowerVault ME4 series added in the program. MDF is also a key component of the company's incentive structure and instrumental in driving demand in the market. 

Win-Win Agenda

Last year, Dell EMC launched a new Partner Preferred Program which was simple, predictable and profitable for channels. “Today, over 60% of the US$25 billion business is sold with and through channels, which is accelerating with Enterprise Preferred Program, deal registration, among others. Dell and channels will win big by focusing on those 4 transformations and the business outcomes they deliver for customers,” said Scannell.

Dell has also invested in education to help its sales teams better understand the best ways to engage with partners. The company will roll out an official badging program that rewards team members who pass courses on rules of engagement, leveraging the channel for success and channel go-to-market programs. “In Q3, we had a 25% year on year increase in approved deal registrations. Rules of engagement violations are significantly down year on year because of the importance we’ve placed on stringent escalation process and management,” said Mullen.

Additionally, Partner of Record protection in the Dell EMC program now protects channel investments as Dell’s sales teams work with channel on new storage or datacenter deals in that account. “Channels can dive into the criteria and details by logging into the Partner portal. We are simplifying and offering protection to channels in two ways – The Storage and Server Partner Record Incumbency that protects past investments, and Partner Preferred Program that offers comprehensive benefits to reward and protect new business acquisition,” she informed. 

Our simplified protection strategy is a perfect segway into the next part of our agenda and my number one priority of the year – to make it easier for channels to do more business with us, she added 

“Dell Technologies is committed to providing more self-service and automation as we drive process improvements. We believe in winning together with channels as we are in this business to leave a legacy of good,” mentioned Joyce Mullen at the Dell EMC Global broadcast on 2019 Channel Roadmap.

Number Crunch: Key Growth Drivers of Dell Technologies (Global)

In 2018

Dell Technologies’ channel delivered over US$49 billion dollars in orders

In the first 3 quarters, the enterprise business was up over 25%

In Q3

- The order revenue in the channel was up 21%

- There was 25% YoY increase in approved deal registrations

- Distribution order revenue was up 19%, 13% increase in client solutions, Server up by 38% and storage in the channel grew 12% YoY

- Partners added 15,100 brand new customers or reactivated customers

- The average number of LOBs (storage, servers, networking, etc.) sold by partners was up by 10%

Joyce’s strategic priorities for channels in 2019

  1. To make it easier for channel partners to grow their businesses with us.
  2. To fast track channels’ ability to deliver transformational solutions, taking advantage of all of capabilities offered by Dell Technologies family of brands.
  3. Embracing and monetizing emerging technologies, which empower channel partners business today and tomorrow.

Channelworld-India

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