Dell Canada makes its profitability pitch

TORONTO – At the 3rd annual Dell Canada Partner Summit Canadian subsidiary president Kevin Peesker told a crowd of channel partners from across the country that the vendor plans to expand its salesforce through the channel community, while improving the overall solution provider buying experience and invest more in partner profitability.

As an example, Dell Canada now has 100 per cent of its field sales team paid through channel engagements. Also Dell Canada inside sales are now being compensated only when they do business with the channel.

Over the last year Peesker said 27 per cent of Dell Canada staff are now dedicated to the channel up from 16 per cent in 2014.

This move has increased rebates to the channel by 143 per cent, which has increased profitability for the channel community, Peesker added.

“Everyone likes a little bit of profit, but the best way to get to profitability is not necessarily to increase the percentage of margin but instead to win more deals,” he said during his keynote presentation at the Dell Canada Partner Summit.

The concept Peesker is pitching to channel partners is to increase partner profitability by what he calls “winning together.” By having more co-engagements, Peesker believes the channel can expand into the line of business and selling more networking, storage, and server solutions. This also improves the changes of the channel selling more software and thereby attaining more profits.

“And, it brings up the rebates as well,” Peesker added.

Dell Canada has also tweaked its coverage model for the channel in Canada to concentrate on regional markets. Jon Dermott who was leading public sector will now be responsible for all customer types in Western Canada including public sector. The same approach is being taken for the Eastern portion of the Canadian market with Andre Valiquette in charge of Quebec, Eastern Canada and Central commercial business. Peesker has also added more resources for the Quebec market.

In a year 68 per cent of Dell Canada year-over-year acquisition growth was fueled by channel mandated reps, while 129 per cent of revenue growth shifted from direct sales to the channel.

The subsidiary also aligned all of its system consulting team to channel partners. This resulted in a 17 per cent year-over-year Canadian channel revenue growth of which 25 growth in the enterprise sector.

Peesker said that 862 new channel partners have been trained on Dell solutions since the last Partner Summit netting 359 new competencies.

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Former editor of Computer Dealer News, covering Canada's IT channel community.

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