Bekker's Blog

Blog archive

Dell Stays Serious About the Channel

A little over a year after publicly pledging a major channel push, the standard bearer for direct sales, Dell, is continuing to invest in its partner program and increasing its number of partners and its channel-related revenues.

Chairman and CEO Michael Dell first said publicly that his company was committing to the channel in May 2007. The company followed that with the formal launch of its new PartnerDirect program in North America in December.

In the first few months of this year, the company expanded PartnerDirect to its Asia Pacific/Japan region.

"Since we launched the program in the United States in the fourth quarter, we've added over 3,500 new global partners," said Michael Dell during an earnings call Thursday night. "And our channel business is now on a $12 billion run rate."

There was little mention of the channel revenues in Dell's investor releases, which focused on topics of more interest to shareholders -- the overall plan to restore the company to strong profitability and market share leadership.

For its first quarter, Dell improved revenues 9 percent over the year-ago quarter and had a 12 percent increase in earnings.

For context on Michael Dell's new numbers, the 3,500 new channel partners join about 30,000 Dell channel partners worldwide. In late 2007, Dell also said that channel revenues already accounted for about $9 billion of Dell's approximately $60 billion in annual revenue. If the new run rate of $12 billion is maintained, Dell is on track for at least 33 percent growth in channel revenues.

The second half of May was a busy time for Dell PartnerDirect. The company hosted a newly formed Partner Advisory Council at its Round Rock, Texas headquarters. Dell executive participation included Michael Dell himself, who told the group, "This is not an experiment. What we want to do over the next three to nine months is better understand the capabilities of our partners."

Dell also launched a Dell Channel blog on May 22.

Among the entries is a Q&A with Greg Davis, vice president and general manager of Dell's Americas Channel Group, who said partner deal registrations total $200 million so far. Davis also promised to expand PartnerDirect to Mexico in a few months.

So what do you think? Is Dell doing the right things here by the channel? And does what they're doing match up to all the attention the program is getting? Let me know at [email protected].

Posted by Scott Bekker on June 02, 2008 at 11:58 AM


  • The 2020 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generations of .NET and PowerShell, here's what's on tap from Microsoft this year.

  • Premium-Level Azure AD Coming to Microsoft 365 Business

    Users of Microsoft 365 Business will be able to access Azure Active Directory Premium P1 licensing free of charge, Microsoft said this month.

  • 2020 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss. (Now updated with COVID-19-related event changes.)

  • Curvey Stone Steps Graphic

    Microsoft Makes Run at 5G, Edge Computing with Azure Edge Zones

    Microsoft is promising to enable new edge computing scenarios for partners and developers with Azure Edge Zones, which became available as a preview this week.

RCP Update

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.