Is Dell making room for the smaller VAR? 13 December, 2007 By Patricia Pickett

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Last week, Round Rock, Tex.-based Dell finally formalized something it's already been doing for years -- selling through the channel -- by launching a partner program. PartnerDirect includes a deal registration scheme, a revamped compensation model for internal sales people, and some of the usual yawn-inducing elements typically seen in other programs, such as a couple of partner tiers, access to marketing collateral, post-sales support, financing options and certifications.

According to Janet Waxman, vice president of hardware channels and alliances with Framingham, Mass.-based research firm IDC Corp., the announcement ended up not being that exciting.

"It was a non-event," she said. "I don't know why they made such a big deal," seeing as seven months have gone by since Dell first went public with its intentions to make its relationship with the channel official, she said. "It took them (that long) to come up with anything that approximates a program, so it's not shocking." Waxman added that the announcement itself was "fairly light" on details.

At least that's the way it came across to the media and analysts. However, eChannelLine obtained an e-mail, sent from Dell to a number of value added resellers (VARs) it has already been working with, which provided additional information on some of the requirements for the new Managed Services certification that was announced as part of the vendor's channel push.

The first requirement is for at least one person within the partner organization be certified as an ITIL Practitioner or an ITIL Manager. The e-mail originally included the option of being certified to ISO 20000, but Dell has since removed that option, stating that it was incorrect and should never have been included in the first place.

Next, those partners that currently provide managed services must purchase an MSP Quick Start with Audit package for $4,999, while those that are new to managed services must buy the MSP Quick Start with Business Builder package for $8,999. "These packages help prepare you to do business with Dell, and we will also review your managed services business plan," the e-mail stated. Both packages include a week of technical training at Dell's Billerica, Mass. office, which partners must pay for out of their own pockets.

After that is a multiple choice MSP Operations and System Administration exam with a passing score of 80 per cent. In accordance with Dell's Warranty Parts Direct requirements, two staff members from the partner organization must also take an online training course for one or more of the vendor's server product lines, and pass the associated online exam.

Finally, in order to maintain the MSP certification, the partner organization must have at least 100 devices under management within the first year of earning certification.

Some of these requirements -- and especially the last one -- only serve as a barrier to the smaller VAR, according to one partner who requested anonymity. "(Dell) stepped on what made the VAR program grow," he said, adding that although the partner program was built on a history of doing business with the "little guys," it seems as though the vendor is only catering to a small number that can apply. "You can't get (MSP) certified because a small or medium VAR is unlikely to close 100 devices in the first year."

In an e-mail response, Dan Phillips, Dell's global director of channel services, noted that "to ensure quality service delivery, and to be recognized as a Dell Certified MSP Partner, partners must be qualified through a training, technology and audit process." SilverBack partners are able to apply for the MSP certification without jumping through all of these hoops because they have already gone through the process, he said.

"In addition, management of 100 devices in the first year is considered to be a minimum level in order to demonstrate some level of success and commitment as a Dell-certified MSP, and Dell will work with the partner to help them get there," Phillips said.