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Dell considers establishment of distributor tier in A/NZ

Sathya Mithra Ashok | July 2, 2014
Global technology provider, Dell, is considering the establishment of a distributor tier to help and support its interaction with partners in the A/NZ region.

Global technology provider, Dell, is considering the establishment of a distributor tier to help and support its interaction with partners in the A/NZ region.

"The Partner Direct program has been in place for around five years now. We have three levels of partnerships, which is registered partner, preferred partner and premier partner. We don't necessarily drive revenue through distribution today. All these partners deal directly with us.

"What we do with distribution is under review, both in Australia and NZ. So perhaps there will be more announcements in the future. Certainly this year we will make decisions about what to do," says Peter Murphy, MD at Dell NZ.

Dell has around 2000 resellers across both geographies, with around 40 per cent of them active at any point in time depending on the quarter.

Speaking to Reseller News Murphy states that the firm does have distribution agreements in place for products and solutions that Dell acquired, and which came with an existing channel pedigree. This includes the likes of SonicWall and Wyse.

"The benefits that we think a distributor can bring to us are a couple of things. In Australia, if you talk to some of the larger distributors, they would tell you that they have around 8,000 to 10,000 partners. Some of them are small and some large, but clearly, there is a large percentage of the market that we are not talking to. So reach is one of the things that has potential for improvement.

"Obviously distributors can provide credit, hold stock, and there are a variety of other value adds that they can bring that we don't necessarily have or offer to the same extent today. So yes there are a number of benefits to having a distributor, but in terms of who we would select - we are in the process of going through that," says Murphy.

Murphy adds that there are likely to be multiple distribution agreements across solution sets.

"There are certain distributors out there that focus on more transactional products, and there are those that focus on products that may require some deeper knowledge in how they are positioned, scoped and provided. So not all distributors are the same. To give us the right coverage we would probably need a couple of distributors to give us the reach.

"It remains to be seen whether these would be trans-Tasman in nature. Part of it has to do with the appetite of the distributor in both geographies. Some of the larger distis report from NZ into Australia, and others report directly to Singapore or elsewhere. The level or appetite for partnership is different among them," adds Murphy.

 

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