Dell Technologies Unveils Channel Partner Strategy at Canalys Forums

Dell Technologies has made significant revelations during the Canalys Forums 2023 Asia Pacific event, outlining a comprehensive strategy aimed at consolidating its position as a transformative technology vendor while fostering partnerships and market expansion opportunities.
Dell strategy to boost storage salesPeter Marrs, President of Asia Pacific & Japan at Dell Technologies, revealed the company’s key objectives, emphasizing a multifaceted approach:

Expansion and Modernization: Dell Technologies seeks to invigorate its core business through solution-oriented acquisitions, bolstered by varied consumption options.

Market Growth: Aiming to widen market opportunities, the company plans to expand its partner ecosystem, enhance Dell Technologies marketplaces, and provide robust enablement, training, and competencies.

Enhanced Collaboration: Strengthening collaboration efforts to streamline experiences, Dell Technologies aims to foster predictable engagement and bolster technological automation for an enriched partner experience.

The company stresses a commitment to continuous improvement, citing feedback, evolving market dynamics, and solution advancements as drivers for refining its partner landscape and channel business.

With the number of metal partners escalating to 5,700 in fiscal 2023 from 3,949 in fiscal 2019, Dell Technologies demonstrates a tangible stride in partner engagement and expansion.

The latest findings from Canalys, a prominent industry analyst firm, project a steady 3.5 percent growth in the worldwide total addressable IT market, surging to an estimated $4.7 trillion this year. This uptick, however, occurs against a backdrop of restrained spending prompted by ongoing economic uncertainties.
Canalys report on IT spending in 2023
A notable revelation from Canalys’ research indicates that partner-driven IT technologies and services are poised to surpass $3.4 trillion in 2023, constituting over 70 percent of the global total addressable IT market.

The report highlights a nuanced regional outlook:

North America: Anticipated spending growth of 2.8 percent this year represents a significant decrease from the 8.5 percent observed in 2022. This region is set to account for 37.7 percent of the total addressable market.

Asia Pacific: A forecasted growth rate of 4.5 percent positions the region as a significant driver of global IT market expansion.

EMEA (Europe, the Middle East, and Africa): Expected to experience a growth rate of 3.4 percent, contributing to the overall global market uptick.

Latin America: Forecasted to grow by 3.0 percent in 2023, albeit at a slightly slower pace compared to other regions.

Dell Customer Stories in APJ

Tian Beng Ng, SVP and GM, Channel, Asia Pacific & Japan, shared insights into recent customer engagements in the Asia Pacific region. Approximately 50 percent of net revenue in FY23 stemmed from partners, with Dell Technologies noting that in certain countries, 100 percent of sales were channeled through partners, albeit without specific details disclosed.

For its fiscal 2024 third quarter, Dell Technologies reported revenue of $22.3 billion, a 10 percent decline, signifying an approximate $11 billion contribution from channel partners.

Recent Customer Collaborations

Highlighting recent collaborations, Dell Technologies showcased its involvement in pivotal projects across the Asia Pacific:

Partnering with NHN Cloud, Dell-powered infrastructure fuels Gwangju AI data center, crucial for AI and HPC projects and national AI research in South Korea.

In collaboration with PSA, a global port operator in Singapore, Dell Technologies contributes to constructing a fully automated, intelligent, and sustainable port leveraging a multicloud foundation.

Enabling Technicolor Creative Studios in India with infrastructure solutions and cybersecurity integrations, Dell facilitates expanded creative project endeavors.

DP Architects in Singapore upgraded their high-performance computing environment with Dell’s infrastructure solutions, enhancing operational efficiency and global collaboration in real-time.

Partner-Centric Approach

Embracing a “Partner First” strategy, particularly in the realm of storage, Dell Technologies unveiled an enhanced go-to-market strategy aimed at augmenting storage opportunities for partners.

The company highlighted a remarkable reception, with 99 percent of Dell customers and potential customers considering the “Partner First” approach for storage solutions. To incentivize partner-centric transactions, Dell sellers will receive increased compensation when conducting business through partners. Notably, there has been a fourfold surge in the number of storage Partner of Record (PoR) accounts.

The Infrastructure Solutions Group within Dell Technologies registered a third-quarter revenue of $8.5 billion, remaining steady sequentially but experiencing a 12 percent year-over-year decline. Server and networking revenue reached $4.7 billion, showcasing a 9 percent sequential growth driven by AI-optimized servers. However, storage revenue stood at $3.8 billion, dropping 8 percent sequentially, despite robust demand in unstructured data solutions and data protection.

Baburajan Kizhakedath

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