Dell cheapens its image at HP channel event
Dell Computer might want to rethink a recent channel recruitment promotion.
During a recent channel conference hosted by Hewlett-Packard Co. at the Las Vegas Caesars‘ Palace, I was lined up for a taxi and approached by two rather attractive women who claimed to work in casino promotions.
One of them asked if I had just attended the HP channel event inside the hotel. I said, “yes” and was then handed a paper flyer.
I initially thought I’d been given some sort of exclusive invitation to one of the many night clubs on the Las Vegas strip. To my amazement I’d been handed a Dell flyer that told me the company was driving some US$9 billion in channel business and claimed more than 30,000 solution providers in its North American partner network. Let me speak to the marketing tactic presently. The Dell flyer itself cited numbers that were at best somewhat inflated. I’d heard Dell worldwide channel chief Greg Davis say there were approximately 15,000 partners in the U.S. while in Canada, local channel manager Frank Fuser says there are about 2,000 partners here. If you also add in the 5,000 Equallogic partners then the total sits at around 23,000, significantly below this stated 30,000. Read the rest of this entry »
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Canadian success can’t happen without local leadership
Bruno Pupo’s exit as area director for NEC Display Solutions in Canada is unfortunate for Pupo individually and for NEC in the Canadian market.
Pupo’s job with the Canadian subsidiary was eliminated by the Itasca, Ill.-based American parent company as NEC goes through a re-organization. Pupo, who dedicated more than 18-years of his career to NEC, was an area director who lost his job.
Likewise long-time channel executive Alex Nobile is looking for gainful employment after 20 years spent in the IT business. Nobile had left his job at Synnex Canada to become NComputing’s country manager. NComputing was named a vendor to watch by CDN in 2007. But after eight months of excellent growth, NComputing management decided to eliminate the country manager position and handle Canadian business out of the U.S. Read the rest of this entry »
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Nick Tidd is no longer 3Com Canada’s last man standing
If you had occasion to deal with 3Com in Canada during this decade then you probably knew Nick Tidd, the former country manager who in recent years has traveled the globe preaching the networking gospel of a dying company.
Earlier this month, Nick Tidd the long time face of the company who had been a one-man show for 3Com in Canada was finally relieved of his job.
3Com has been spinning its wheels for a long time. Since the high-tech crash of 2000, 3Com has been a rapidly declining and ultimately insignificant industry player. It wasn’t the case when Tidd joined the company from U.S. Robotics back in the 1990s. It’s hard to believe that at one time 3Com and Cisco Systems were equals in terms of revenue and market share.
With Tidd now gone at 3Com one wonders why a Canadian channel partner would continue reselling its products. Read the rest of this entry »
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Dell may be playing the wrong channel game
Dell may be trying to change the rules of the channel game by not offering rebates similar to what’s being given by most other PC and server vendors.
Instead, Dell is looking to provide pre-configuration of systems and shipments directly to customers, for a less obvious but arguably greater value to the channel by eliminating the time, effort and expense of partners who currently do this sort of work – for little or no profit.
But it is asking a lot of channel partners to accept a new deal and I’m not convinced that the approach will work. Let’s not forget how Dell’s direct selling strategy changed the rules of the PC game by eliminating a selling tier and passing savings onto the buyer. Dell’s direct selling model worked well for more than 20 years, so I don’t entirely dismiss the chances of success for the company’s unique idea. But it’s difficult to see the real dollar benefits of this program. Read the rest of this entry »
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Dell stuck in the middle
Dell Computer Corp. is stuck in a place that the company probably never thought it would be – right in the middle.
The company has said it will continue to sell direct and they are also trying to recruit channel partners to boost its indirect business.
But the reality is that Dell will have to make a choice – which way it is going to commit? A mixed approach will have them butting heads with the channel. Successfully committing to both the channel and direct sales will be tough, if not impossible. Just ask IBM and HP.
IBM has had to smooth out channel relationships many times over the past 30 years because it has taken business direct. HP has had its share of channel conflict during the Carly Fiorina years.
Dell will have to learn how to deal with channel conflict or be stuck in the middle between direct sales and channel sales and run the risk of not being successful at either. Read the rest of this entry »
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Cisco/Linksys gets too secret
You have to wonder what’s the real story behind Cisco Systems Inc.’s recent decision to eliminate the role of Linksys vice-president of worldwide channel organization, which left Nigel Williams looking to find a place for himself elsewhere within the company.
It was curious that the company decided not to talk to the CDN or other media about this decision. There were important questions that needed answers such as whether Bob Martin, the Canadian channel chief for Linksys, would be retained or if any of the Linksys restructuring will filter up to Canada.
Instead we were left guessing. We did receive this statement from Cisco: “We are focused on providing world-class service and support to our partner community and that by decentralizing management our partners can reap increased benefits through support that is tailored to their local markets. We are also excited that best-practices achieved with this model will be shared throughout the country regions and examined locally for implementation.” Read the rest of this entry »
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