Tuesday, June 27, 2017

Dell EMC - We've cut more than 100 distributors and we plan to keep cutting

#DellEMC has cut more than 100 distributors from its global line up according to global channel chief #JohnByrne, who said that he intends to continue slimming down the firm's distribution fleet. In October last year, Byrne told partners at Dell EMC's first-ever partner summit in Austin that the firm was over distributed. EMEA channel boss Michael Collins later told us in December that Dell EMC had asked its distributors to submit a request for proposal as part of the review process. Speaking to Channelnomics Europe Byrne confirmed that the firm has now cut 105 distributors globally, bringing Dell EMC's distribution count from 375 in October 2016 to a present day 270. The channel chief said that he intends to reduce its distribution ranks even further and claimed that cuts were "ongoing" but could not put a number on how many more will be removed. According to Sarah Shields, general manager of UK channels at Dell EMC, the UK has seen very few distribution cuts, and is likely to remain largely unaffected by the firm's distribution review. "Just to be clear, in the UK we are pretty clean. Especially when you look at Exertis and Hammer, two become one, then you have Azlan, Tech Data and Avnet, so three become one, so we are in a pretty good position right now," she said. "It has become far easier for partners to navigate our portfolio which is vast. It has been perfect timing." Dell EMC intends to maintain a mix of regional value-added distributors as well as maintain relationships with the three global names: Ingram, Tech Data and Arrow. Collins had previously explained that the firm intends to adopt a "two-plus-one" model, where each country will be catered for by two global players plus a regional one. Byrne said that he intends to keep the same combination on a global basis. "There will be some regional specialisation, some countries there will be two-to-one some will be three-to-one and some will be three-to-two. But nonetheless we are looking at significant distribution rationalisation, and we want the distributors with the capability. If you're not a specialist, we want you to be selling more of our portfolio and we want to be taking share from HP, Lenovo and Cisco. Byrne echoed Collins' sentiments in claiming that the mega-merger between distribution titans Avnet and Tech Data has helped Dell EMC with its distribution review. Byrne claims that since Dell's marriage to EMC, the "big three" distributors have been "all in" with the united company. "When we came together, for EMC, way over 60 per cent of their distribution business was done with the big four, and now the big three, so Arrow, Ingram and Tech Data. If you look at VMware, which is also part of Dell Technologies, they are also heavily weighted towards the big three. At Dell we weren't, the big three were less of our business," he said. "Those big disties didn't really look at us as an enterprise play and I think now there is no confusion; we are absolutely an enterprise play, truly end to end. We are definitely going big with the big three, however we are also looking for regional specialists." He added: "Those big three are all in with us. If you speak to them independently, our channel has been growing double digit, our distribution business has been going double digit since we became a private organisation. We have the widest portfolio on the planet, our channel is growing fast and our share is of wallet with partners is only in the low teens. None of their other existing vendors are throwing those points on the board."

https://www.channelnomics.eu/channelnomics-eu/news/3012664/dell-emc-weve-cut-more-than-100-distributors-and-we-plan-to-keep-cutting

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