EqualLogic Throws Out the Line for Dell’s Partners
EqualLogic Throws Out the Line for Dell’s Partners
December 10, 2007: Dell’s direct marketing strategy is facing a significant turnaround as their latest acquisition EqualLogic, prepares to show them the ropes of a channel program.
Last week Dell announced a partner programme that changes the paradigm of Dell’s direct sales model. The long-awaited partner programme wills see registered partnerships offered to resellers Dell had previously ignored when it was protecting its direct sales model.
The move comes just weeks after announcing the US$1.4 billion purchase of networked storage provider and 100 percent channel supporter, EqualLogic. Michael Dell’s formal pledge to develop a global channel program may now ease reseller tensions around the purchase of EqualLogic.
According to Chris Casey, Australia managing director of EqualLogic, the deal marks an obvious play by Dell, “to once again get control over their own and destiny and realise the future of their market around IP technology, iSCSI is the way to go.”
Casey believes the purchase of EqualLogic is proof enough of how confident Dell is on the future prominence of iSCSI technology in the storage market. “They’ve made a US$1.4 billion bet on this as well as a commitment to EqualLogic’s marketing and predictions on the enterprise,” he says.
Extending from the iSCSI advantage, Casey says the deal will give deal more room to move in the market. “It gives Dell control of their own destiny when it comes to storage, previously they’ve been reliant on bigger vendors like EMC.”
Meanwhile for Dell’s 100 percent channel business model, some concerns have been raised from partners. Casey suggests there’s no reason for resellers to miss out, especially given Dell’s increased interest in the reseller market and the valuable experience the acquired EqualLogic.
“It makes sense for Dell to leverage our model rather than remould it,” says Casey.
Dell is expected to finalise the deal with EqualLogic by the end of January 2008.