Dell banks on partner program

Dell Inc. continues to move awayfrom its direct-sales-only reputationand toward the federal channel.This time it is expanding its yearoldPartnerDirect program to includea certification level for companies inthe federal market.The computer giant began formalizingits relationship with its channelpartners when it launchedPartnerDirect in December 2007.The program, which includes commercialand public-sector resellers,spread from the United States toDell's partners in Canada andWestern Europe.About 12,200 partners have registeredso far, said Greg Davis, vice president andgeneral manager of Dell's AmericasChannel Group.In the government market,PartnerDirect is adding a certificationlevel that is a step above the registeredpartner level. Davis said he expects Dell touse this model in international publicsectormarkets, too."We've really tried to identify strongpartners who have very focused sets ofvalue-adds in a number of areas and limitour certifications to those partners whomeet those qualifications and invest withDell," he said.About 300 partners did business withDell in the federal sector last year. "Wewant to ensure that we have them registered,that we get them training material[so] that they're certified on our solutions,and when there are opportunities to grow,that we have the opportunity to do that aswell," Davis said.The certification level also includeslead-generation assistance, incentive-basedco-marketing funds, expanded supportfor deal registration and the use ofdemonstration products. Partners thatgot certification saw an 84 percentincrease in business with Dell year-over-year,Davis said."We certainly see a growth in our registeredpartners, partners who have gone tothe trouble of formalizing a relationshipwith Dell, taking advantage of our portal,our e-commerce tools, the training that isavailable," Davis said. Registered partnerssaw a 14 percent year-over-year increasein their business with Dell.With the addition of the federal certificationprogram, Dell has three certifiedpractice areas in the United States: managedservices, enterprise architecture andfederal."We're very much in the early stages ofwhat we can do with our partnering relationships,"Davis said. "The framework[of the program] is something thatwe intend to roll out for our government-sector businesses around theworld where we have partner programs.""We look at our certified partnersin a very different light" from registeredpartners, he said. They can takeadvantage of enhanced pricing andenhancements through deal registration,market development funds thatDell makes available, and returnsprivileges.Davis said Dell will continue to expandthose benefits as the certification programmatures as a way of repaying those firmsthat have invested their time, resourcesand money in Dell. In addition, the certificationprogram helps the company reach customers it has not reached before,he added.Dell's certified federal practice area consistsof 20 letter-of-supply partners.Requirements for that group include holdingat least one governmentwide contractand a General Services Administrationschedule, in addition to being a small businessor qualifying for another contractingprogram. The companies also form thePartner Advisory Council."We don't want to change that number,"Davis said. "We want to look for ways toenhance it, and we've been very particularabout anyone that we want to invest inaround a letter of supply and who isinvesting in Dell."Having 20 certified federal partners isabout the right amount, said GinoAntonelli, executive vice president ofbusiness development and service operationsat Intelligent Decisions, a Dell partnerand advisory council member."That's a manageable number of organizationsfor them to actually get appropriatefeedback," Antonelli said. "I think that'sreally important as a first step in establishinga very, very strong channel program.""In the federal space, we have a verytight relationship with our partners, andwe're looking at how we can expand thatacross all our public sectors," Davis said.Dell will continue to work with 95 percentof federal agencies, added Troy West,a general manager and vice president atthe company. "We're now formalizing our[federal] program with a certificationpath underneath Dell's PartnerDirectprogram," West said."We have made specific investments inchannel resources recognizing the benefitof having people dedicated to support thechannel partners," he said. "What isn'tnews is the fact that we support partnersin the federal marketplace. What is newsis that we're now formalizing our programwith a certification path underneath Dell'sPartnerDirect program."West has assumed some of the duties ofJim Duffey, former vice president andgeneral manager of Dell's Public BusinessGroup, who left the company in June.West said Dell created a partner programwith GSA four years ago and nowhas partners that run the gamut of contractingcategories."We've really learned how to worktogether," West said. "We've learned howto leverage one another's core capabilities,how to integrate our teams together,and these partners have been instrumentalin shaping the program."Teresa Bozzelli, chief operating officerand managing director at IDCGovernment Insights, said the programbenefits the government, Dell's certifiedpartners and the company."The value for the government is [it's]a collaborative exchange of informationthat increases the understanding aboutwhat the government needs and increasesthe relationship between people whounderstand Dell and the people whoneed [information technology] capabilities,"she said.Bozzelli said the government andPartnerDirect participants benefit fromthe increased expertise and quality of theDell sales teams in the federal market."Any time we can increase the quality ofour technical teams, we're going alsogoing to be able to lower some implementationcosts," she said. "And, again,that's good for government."Dell benefits because it will be able toincrease its footprint in the federal marketwithout having to increase its salesforce, Bozzelli said. The program "is anaccelerator to get the Dell message out,and an accelerator to leverage a collaborativesales approach," she added.Bozzelli said she sees only a smalldownside for the participating channelmembers. "The partners will need tomake an investment. But an investmentdoes increase your chances of a return,called opportunity."