*NEWS*DELL TIGHT-LIPPED OVER INK DIST.

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Date: Tuesday October 16, 2007 11:11:00 am
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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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