Resellers back Dell going private

Technology and solutions being offered down the track could see better value and service for customers

Local Dell resellers are backing the PC maker’s $US24.4 billion private buyout deal, and they would stand to benefit from its enterprise focus.

Dell has maintained a shaky history with the channel, but Regal IT managing director, Mark Gluckman, said the vendor slowly started seeing the value of the channel and the value it brought to their partnership and direct sales teams.

“It’s taken a long time to get to where we are now,” Gluckman said. “We’re partnering very strongly with Dell on networking and storage with Compellent, which has worked well for us. They’ve leveraged our expertise and haven’t pushed us to the side.

“Hopefully with the technology and solutions they offer in the long term is where we’re going to see the value and it will translate to better service and value for customers.”

Applaud managing director, Ricci Danieletto, didn’t think the buyout represented any danger for Dell channel partners, and its commitment remains steadfast.

“He’s done this to have a bit more of autonomy and liberty in driving his vision,” Danieletto said. “Based on the acquisitions Dell has made so far, whatever he ends up doing is going to be good for the channel.”

According to regulatory documents filed in the US, Dell said it would continue to honour its supplier agreements, terms and commitments.

The company’s founder, Michael Dell stated the private ownership structure will allow time and flexibility to pursue its long-term strategy. The vendor has tried to transform itself from a low-margin PC vendor to and enterprise player in providing servers, storage, networking, software and services, thanks to a string of acquisitions in the past.

“Under a new, private company structure, we will have the time and flexibility to fully pursue and realise our end-to-end solutions strategy and pursue organic and inorganic investment, without the scrutiny associated with a publicly traded stock, quarterly targets, and other limitations of operating as a public company,” he said.

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1 Comment

Ding Dong Dell

1

You guys are kidding yourselves if you think it won't make a difference to the resellers. Dell has been hopless at managing reseller relationships, taking business direct whenever it pleases.
They will hand over the PC business to Microsoft - how convenient that MIcrosoft is lending them $2 billion for the buyout. They have missed the mobile market completely while they tried to make $500 per PC margin which was Michael's catch phrase. Now they have a PC business that is weighing down on them so much, they would have been a $5 stock this year.
So once they have remodelled the business subject to the stock holders agreeing to the buyout - and who wouldn't want to get their money out before the stock sinks below $10 again. The business will be Enterprise, Data Centre, Hosting, Networks and Services. But they won't have any money to buy a networking company so they will be looking for a partner ....Juniper maybe? They've blown all ties with Cisco and HP.
Then where will the resellers be in a year's time. If you can't sell Dell's Data Centre hosting business, the only hope will be maybe they will let you sell their servers and storage. Good Luck. They missed out on 3PAR and have no mid-tier storage solution. EMC dumped them once they saw their 3PAR play which failed. The only reason they are using resellers to sell Compellent is because they don't know how to sell it. They keep giving it to customers to try and buy, hoping it will stick.
I would make sure you have a contingency plan and line yourselves up with HP before your your business fades away before your eyes.

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