DELL TIGHT-LIPPED OVER INK DISTRIBUTION

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Dell tight-lipped over distribution
PC giant targets channel growth
Dell has started shipping substantial volumes of PCs through distribution as it steps up its low-key channel assault.Analyst firm Context has flagged up a sudden spike in Dell shipments in the sales figures of distributors in Europe’s six leading economies, with the sharpest increase in the UK.Jeremy Davies, senior partner at Context, said: “We’re used to seeing Dell coming in at between 2,000 and 4,000 units a quarter [through UK distributors], but in the third quarter it hit four or five times that figure.“At the moment it’s difficult to say whether this is an isolated spike or the beginning of a long-term trend. It’s not official that Dell works with any distributor, but it is common knowledge that the vendor is in talks with potential partners.”

Channel sources remain stumped as to the identity of Dell’s allies, with none of the leading distributors listing Dell kit on their web sites.Dell, which recently admitted its direct selling model was no longer “a religion”, said it “does not comment on third-party research”.Warren Hudson, commercial director at IBM distributor Interface, said: “We have not been approached by Dell. We’re aware that Dell is keen to approach the channel and fully expect it to talk to us when it does.”Stuart Hayward, commercial director at online VAR WStore, said: “Nobody has approached us about buying Dell [products] from distribution and I would have thought we would be high on the hit list.”

Dell poised to deal with channel
Direct selling giant admits it is contemplating going ‘beyond’ its traditional business modelResellers are optimistic that Dell may start forging formal ties with the channel after the PC giant admitted its direct sales model would no longer be “a religion”.Following a prolonged period of market share decline, a leaked memo from chief executive Michael Dell to staff stated that Dell was looking to “go beyond” the business model that had catapulted the firm to success.Shaun Parsons, managing director of IBM VAR Computer World Wales, said: “For some years we’ve been approaching Dell, but each time it’s not returned our calls. That might now change.”Jonathan Wall, marketing director at e-tailer dabs.com, a division of BT, said: “I would welcome it if Dell wanted to open its doors up to the channel. I could certainly see us getting involved at the high end with its blade servers.”Paul Blundell, managing director at VAR iQual, said: “I would be keen for Dell to pursue an official reseller model, even if that means going through an accreditation process.”Dell refused to comment.

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October 16, 2007 at 11:10 AM