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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