VARs: Dell's Direct Heritage Poses Hurdle For New Channel Chief

"I won't trust them in any way, shape or form," said Mark Brown, CEO of Total Networking Solutions, Pennsville, N.J. "I only do business with them to support my customers who want Dell products. I've had a couple instances where my customer reached out to Dell and said one of your solution providers gave us a proposal and Dell came in and cut underneath me and went directly to the customer. Once you get a bad taste like that, you don't forget it."

Brown noted that despite his past relationship with Dell, the company has not sought his input or kept him in the loop on any changes to its channel strategy. "I have been a member of their special pricing delivery team, which is like their channel group, for two years and I haven't heard anything about the new channel chief or programs. Nobody has relayed that information from Dell to me," Brown said.

Dell confirmed Monday that it has tapped Greg Davis, president of its Canada organization, as its new channel chief for the Americas, and will streamline some of its units under his supervision.

Solution providers said that Davis' biggest challenge will be to purge systemic channel conflict inherent with Dell's direct sales model.

"I've been burned by them so many times, it will take an awful lot to trust them again," said Shelden Penner, owner of Amicus Data, a VAR in Gladstone, Ore. "Numerous times I had sourced a deal through Dell, and when the customer called Dell, Dell undercut me and then also sold them something they didn't need. It will take a lot to get that trust back."

Additionally, Penner noted that partners who work with Dell often do so out of necessity rather than as true business partners. "On the other hand, there are many customers who won't buy anything but Dell," Penner said. "It's kind of like I have to get my tooth pulled anyway, even though it hurts. Some customers want nothing but Dell, and if I want that business I have to do it anyway. But I'm going to wait as long as possible. I'm not going to lead with Dell."