Move to ban service from channel partners would be unwise, says Dell

Dell's Asia-Pacific president, Phil Kelly, says any move by a vendor to bar future channel assembly partners from servicing Dell PCs wouldn't be the "strongest strategy" to adopt. A story in the US press claimed Compaq was considering barring future channel assembly partners from servicing PCs made by Dell. However, Compaq NZ says the story was speculation and there were no plans to go ahead which such a plan.

Dell’s Asia-Pacific president, Phil Kelly, says any move by a vendor to bar future channel assembly partners from servicing Dell PCs wouldn’t be the “strongest strategy” to adopt.

A story in the US press claimed Compaq was considering barring future channel assembly partners from servicing PCs made by Dell. However, Compaq NZ says the story was speculation and there were no plans to go ahead which such a plan.

Kelly says it would be difficult for any company to make its living and its livelihood based upon its relationships with intermediaries — “and then be very, very strong in dictating what an intermediary has to do. Given that the intermediary does have options and there are a lot of them lining up at the door, it may not be the strongest strategy ...”

Kelly says most of Dell’s business is direct. “The integration services that are there are but a small portion of our business. If the integrators quit working on Dell machines, you wouldn’t see a blimp in us. There are plenty of solutions to be able to resolve that.”

He says the end result of any such strategy would effectively be someone dictating what a customer’s choices are.

“That’s pretty self-serving. I think we’d rather concentrate on customers, show them products and how we want to be able to come up with a solution for them. If they want to use integrator A because they’ve done a good job for them, the customers should have the ability to do that.”

Dell NZ general manager Ross Allan says Dell’s New Zealand server business is very strong. “We’ve had two instances already where value-added providers have been challenged to work with us or not work perhaps with another brand, and the partners concerned have made their decisions based upon where they see the business going.”

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