Channels Fear Rebate Cut In New Dell-EMC Partner Program

New Dell-EMC Partner Program

Mumbai: Dell and EMC partners are quite apprehensive about the new unified channel program by Dell EMC recently which is likely take a toll of partners rebate. According to a report, Dell EMC is likely to announced reduction in its existing rebates for channel partners.

The CRN report claims that the company is still working on the new rebate structure, even as partners are bracing for reduced rates.

Quoting the source close the process, CRN report said that Dell EMC has not yet established a new rebate structure for partners, but expects to share details beginning Dec. 15, allowing about six weeks for partners “to model” around the program’s new parameters before its official launch Feb. 1. “We know we won’t please everybody, but we’re clearly trying to get it right,” the source told the publication. (Click here to read full report)

However, Dell EMC said that its new partner program will be beneficial for both Dell and EMC partners and will help them grow their business. “We believe Dell partners will be pleased with the programs and terms of the Dell EMC Channel Partner Program when announced in December,” Dell said in a statement.

Among solution providers, Dell’s program is considered more profitable than EMCs, but EMC’s program is considered simpler and more predictable. Partners, however, say it is doubtful that the new unified program will bring the robust incentives that Dell partners were accustomed to under the Dell program.

Dell rebate incentives were consistently 5 percent and could reach as high as 10 percent for solution providers, while EMC rebates ranged between 1 percent and 4 percent, according to partners.

“We don’t believe the rebates will be as rich going forward. All of your traditional Dell partners are running as hard as we can to maximize this last quarter of the rebate”, said the top executive at a Dell EMC solution provider. ”

Also Read: Dell-EMC Channel Partner Program To Be Effective In Feb’17

Other recent changes, though – including removing Quest from the program and eliminating fourth quarter rebates for sales of legacy software products after the sale of the Dell Software Group – raise more questions about the potential bottom-line impact of the unification of the company’s channel program, some partners say.

Dell EMC recently began notifying partners that Quest software products would not be available through the Dell EMC channel program, but would be resold by Dell EMC direct sales teams. This set up what one partner called a “politically tricky” scenario where Dell EMC partners that sign on with Quest could find themselves competing with their primary vendor for that business and potentially souring relationships with both vendors.

Dell EMC has also told partners they won’t get Q4 rebate payments on sales of products offered by the former Dell Software Group. Dell EMC closed the sale of its software unit to Francisco Partners and the private equity arm of activist hedge fund Elliott Management in early November.

The sale helped offset the cost of Dell’s $58 billion acquisition of EMC and did away with software product overlap created by buying EMC, which sells some similar software lines including data protection solutions.

At the recently concluded Dell-EMC World 2016 in Austin, Dell EMC provided a preview of its partner program. Dell EMC is aiming to launch a single, integrated channel program known simply as the Dell EMC Partner Program. Channel Chief John Byrne said that the new program will simplify and automate the rebate process. However, he din’t share details about rebate levels.

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