Dell-EMC Channel Integration To Come in 2017

The long process of integrating the Dell and EMC partner programs will begin in earnest next year.

Dell on Wednesday announced completion of its acquisition of EMC Corp., creating a $74 billion, 140,000-employee giant called Dell Technologies that the company says is the world's largest privately controlled tech company. Businesses within Dell Technologies include Dell, Dell EMC (another new brand as of Wednesday), Pivotal, RSA, SecureWorks, Virtustream and VMware.

The way the new company will be structured means the biggest immediate impact will be on Dell and EMC partners.

Some of Dell's existing business will move into a Client Solutions Group with products retaining the Dell brand. Servers, storage and some other Dell products will merge with EMC into the new Dell EMC brand under an Infrastructure Solutions Group, headed by President David Goulden, a longtime EMC executive who has been CEO of EMC Information Infrastructure since 2014. Goulden's group will also include Virtustream and RSA, according to a slide shown during a press and analyst call Wednesday.

The services business from Dell and EMC is now also its own business unit, under President Howard Elias, a former EMC executive who led the transition from the EMC side.

Several of Dell Technologies' other companies will stand alone as business units, including VMware, Pivotal and SecureWorks.

As of now, things will stay the same for Dell and EMC partners. "There will be no changes to our partner programs. Upsell and cross-sell opportunities will be identified after the close. Two separate deal registration programs will remain in place (with a deal desk to ensure only one partner holds registration)," a company spokesperson said in an e-mail exchange.

Although Dell and EMC are being split across business units, the vision for 2017 involves combining the partner programs. "We also plan to provide one unified partner program with a centralized channel structure, one approach to deal registration, and robust incentives on incremental and net new accounts. Our intent is to create the best possible program for our alliance and channel partners so they can be successful in servicing their customers," the spokesperson said. "This future business partner program will bring together the best elements of the Dell PartnerDirect Program and EMC's Business Partner Program. "

For other Dell Technologies companies, including the two now in the Infrastructure Solutions Group, it wasn't clear if changes would be coming to their partner programs related to the merger.

Comments during the call by Dell Technologies Chairman and CEO Michael Dell seemed to indicate that partners of those businesses shouldn't expect major near-term changes.

"The rest of our family, Pivotal, RSA, SecureWorks, Virtustream and VMware will continue to keep their independence and retain their freedom to develop their own ecosystems. That's part of our commitment to providing openness and customer choice, foundational principles at Dell Technologies, and, I believe, of any successful technology company," Dell said.

A spokesperson for VMware echoed those points and indicated that Dell Technologies-driven changes to the VMware channel program weren't on the horizon.

"A key to VMware's success is the open ecosystem that it has carefully cultivated over the last decade and a half. Dell Technologies recognizes that VMware thrives on its vibrant ecosystem of partner networks including OEM partners, systems integrators, solution providers, resellers and customers. Dell Technologies intends to support VMware's continuing success as an independent company. Dell Technologies will support VMware's open ecosystem and not place any limitations on its ability to partner," the spokesperson said via e-mail.

Posted by Scott Bekker on September 07, 2016