Dell Technologies gives more power to partners with its Partner First Strategy for Storage

In its latest channel announcement, Dell Technologies has launched its Partner First Strategy for Storage, which designates more than 99 percent of Dell’s customers and potential customers as partner-led for storage sales.  This new go-to-market strategy combines partner expertise and reach with Dell’s world-class team and storage portfolio, including data protection, to deliver transformational outcomes for customers. Dell Technologies is driven by the simple belief that the most successful vendors today will be ones that invest in building a partner-led model.

The Partner First Strategy is seen as a reiteration of Dell's continuing commitment to the growth of its partner businesses. The new initiative promises to drive more growth opportunities and enhanced support to propel channel partners’ growth. This also negates the potential for any possible conflict between partners and its own direct sales organization.

There are a couple of significant differences that storage partners will notice with the new strategy. Effective from 8 August 2023, Dell is compensating Dell sellers or its direct sales team more when they transact storage through a partner. This, according to Dell, encourages greater partner teaming and will incentivize Dell sales reps to work with partners on storage deals.

Second, Dell is quadrupling the number of storage Partner of Record-eligible resale accounts for more predictability of engagement. If a partner holds storage POR status, Dell sales reps will work with them on any storage opportunity they uncover within that account, as per its Rules of Engagement.

Dell further said that storage partners will continue to earn rebates and incentives through the Dell Technologies Partner Program. This includes acquisition rebates on the newly eligible Partner of Record accounts.

Diego Majdalani, President, Global Channel, Dell Technologies

“Dell has been adjusting and improving how we work and what we try to do. And one of the things we realised is that we could do more with the partners, specifically in storage. Roughly, half our revenue globally comes from the partner. And one of the things that partners have been telling us is, they want to collaborate better with us. Through Partner First for Storage. 99% of our customers who are potential customers of storage, will be driven through the channel and not through our account teams. Because of the change in criteria that we use, now the number of accounts under partner records increased 4 times. “We don't have a goal as such, like in winning X percentage of the market.  I want to make sure that in 12 months’ time when I talk to the partners, they say that it is much simpler, predictable, in doing business together. Also, since if we are teaming together, we should be winning more and gaining share every single quarter.  We are confident of taking this partnership to the next level.”  

Tian Beng Ng, Senior Vice President & General Manager - Channels, Asia Pacific Japan, Dell Technologies

“Talking about the APJ market, we have had very good business momentum. While globally more than 50% of revenue comes through the channel, in APJ, that percentage is even higher. Some of the markets are in fact 100% channel driven. One metric that we look at in the channel team is deal registration – the number of deals that our partners register or bring to Dell - that has seen good momentum. So, this new strategy is a good indicator of our business moving in the right direction. It really reinforces our commitment to the partner community. One important aspect of this program is that it drives more predictability. If a partner is given a partner record for an end customer, there is predictability. Even if Dell Technologies finds an opportunity, they have to bring it back to that specific partner.  Close to 99% of our accounts would fall under this partner records.”  

Anil Sethi, Vice President & General Manager, Channels India, Dell Technologies

“Dell in India stands committed. We have completed 27 years in the country and that goes on to say of how committed the company remains to the customers. Last year was a tough year, and we had 10% year on year growth. The year before that, we had 35% year on year growth in the channel business. So, we have really grown with a CAGR of about 24-25% every single year. Channel partners have played a key role in making Dell Technologies get a dominant share in three important segments in India – public sector, BFSI and mid-market. We are evolving, and along with it, we are evolving our partner programs. This is one factor why many new partners come and are willing to do business with us. The Partner First Strategy for Storage, including data protection, is a change in our go-to-market strategy designed to fuel continued storage growth in India and around the world.”