- Dell Software deal registration up 61 percent year over year and revenue growth has increased 15 percent since Q2 last year
- The Dell Channel program has attained substantial growth since announcement of new software competencies and software learning paths in September 2013
- Partners have invested hundreds of hours to understand Dell Software’s strategy and solutions and completed more than 37,000 Dell Software training courses in the past year
- First advanced competency – Network Security – to launch this month
Dell has registered significant growth in its software offerings and revenue through PartnerDirect partners since new software-specific enhancements and initiatives went into effect in September 2013. Today partners can sell all Dell software solutions and secure associated rebates to drive the growth of their businesses. Channel partners have embraced the opportunity to offer customers Dell’s end-to-end solutions, putting Dell Software on a strong trajectory.
“This is a great story of transformation and success. 10 years ago Dell was known as a hardware company that didn’t need partners,” said Darren Bibby, vice president of Channels and Alliances Research at IDC. “Today, Dell has added software to its stack to become one of the world’s largest software companies, with the majority of revenue coming from channel partners. Its focus on service provider programs is welcome as that community grows in size and importance. In addition, the large focus on training and enablement is paying off.”
“IDC’s opinion is that partners can no longer be viewed as mostly product focused, services focused, or resale focused,” said Bibby. “Programs like PartnerDirect with a flexible engagement model for partners selling a mix of hardware, software and services allow partners to forge their own form of relationship in alignment with their unique business models and strategies.”
“One year ago, we integrated the unique partner programs of legacy Dell software businesses into one set of software competencies under the PartnerDirect program. We bolstered it with a vast array of benefits to help partners expand their revenue potential and scope of their customer relationships,” said Marvin Blough, executive director of Worldwide Channels and Alliances for Dell Software. “The results have been tremendous – with nearly 60 percent of Dell Software’s sales volume going through the channel on a global basis, fueling growth for both Dell partners and Dell. After moving to a single Dell channel program, everything from deal registration and revenue to partner adoption of the software portfolio and training against it has grown incrementally.”
Since the integration of Dell Software with the Dell Channel program, Dell and its channel partners have achieved many milestones, including the following in the recently completed second quarter of Dell’s fiscal year 2015:
- Dell Software in the channel achieved 15 percent revenue growth year over year, including 42 percent year over year growth in information management, 20 percent in systems management, and 7 percent in security.
- Key lines that experienced explosive growth include integration software at 274 percent year over year, with double digit gains in data protection, data management and enterprise mobility management.
- The channel has grown to represent almost 60 percent of Dell Software’s global volume.
- Individual software deal registrations climbed 61 percent year over year and the value of those registered deals grew 32 percent quarter over quarter.
- The number of hardware partners taking on software competencies has grown by 8% year over year.
Additionally, Dell Software partners have taken advantage of the PartnerDirect training and competency programs in record numbers:
- Since September, almost 11,000 individuals at partner organizations completed more than 37,000 Dell Software training courses.
- Dell Software is also seeing a steady growth in course completions with a 102 percent increase in partner software course completions to date in fiscal year 2015 and a 50 increase in unique individuals taking the courses quarter over quarter.
- The data protection and security training topics are attracting particularly heavy partner interest. Among the software training courses completed by partners in the second quarter, 40 percent covered data protection and 27 percent security.
Dell’s software division has become one of the largest software companies in the world, selling to 90 percent of Fortune 1,000 companies and supported by 6,000 dedicated software employees worldwide. The Dell Service Provider Program now includes more than 150 Dell Software products available to service providers via flexible subscription pricing and billing to suit each organization’s unique needs.
“Corporate IT Solutions has been a Dell Premier Partner since the program began. Our commitment to Dell as a go-to-market strategy has been validated over the last few years with the continued investment Dell has made in the channel,” said Karen Penticost, Director, Vendor Relations, Corporate IT Solutions. “Dell continues to deliver very compelling end-to-end solutions that meet the needs of our customers, and this has been amplified by Dell’s strengthened efforts in software. The new channel has enabled our firm to expand our footprint and increase revenue, which makes this a focused business strategy for Corporate IT Solutions.”
The changes instituted one year ago have enabled Dell Software partners to take advantage of important PartnerDirect benefits. Among them are new paths to Premier status, including a blended competency for partners selling Dell’s end-to-end hardware and software offerings, rewards for training and sales achievement through Dell Partner AdvantEdge, marketing and market development funding for lead generation, and white glove support from the Certified Partner Resource Desk. Since then, Dell has further accelerated the pace of Dell Software channel growth by introducing the first Dell advanced competency in network security. Additionally, Dell appointed key leaders to support the channel go-to-market strategy, including Ronnie Wilson to vice president and general manager of Dell Software Group EMEA and Dave Hansen to global vice president and general manager, Dell Software sales, marketing services.
For partners interested in learning more about the end-to-end solutions including software available through Dell PartnerDirect, please visit here.
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