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PC maker Dell is taking its direct managed services pilot program to the New York metropolitan area but says it has put in place rules of engagement to prevent channel conflict with its solution provider registered partners and certified MSP partners. Dell has also eliminated the $50,000 requirement for managed services deals that its solution provider partners register to qualify for deal registration. Dell sent an e-mail to New York area partners to inform them of the expansion of its direct managed services program.
Dell has unveiled plans to bring its direct managed services offering to the New York metropolitan area and has also said it is eliminating the dollar requirement for managed services deal registration, which had previously been set at $50,000.
The PC maker sent a letter to New York metropolitan partners–both certified MSP partners as well as registered partners--in the early morning on Sept. 15 to inform them of the move.
Dell's move to New York is an expansion of Dell's direct managed services pilot program that began in April in the Dallas market. Dell plans to continue the expansion to other U.S. cities and internationally, but declined to provide a timetable or a list of cities.
Partners have been wary of Dell's moves to sell managed services directly to small businesses–a move that many had expected to potentially cause channel conflict--but so far have found the direct pricing models did not cut into partner business.
In its letter to New York metro partners, Dell said, "This offer is relevant to a broad range of businesses, however, our current marketing material and outbound calling programs are targeted at existing Dell Direct customers as our first priority."
Dell's Tom Roberts, global manager of channel services marketing, said the rules of engagement call for Dell to stay away from accounts that are already working with a Dell-certified MSP. Dell's certified MSP ranks have grown from 100 in April to 150 today.
Dell also used the letter to solicit registered partners who may be interested in offering the Dell Direct MSP service on a referral basis.
"Dell is also interested in working with Registered Partners who may not want to become a full-fledged MSP, but would prefer to be well positioned to sell managed services and help small businesses simplify their IT management," Dell said in its letter.
Dell has not yet set a compensation model for this program, but said that it is working to identify interested partners and then will discuss a handful of proposed compensation models with them, Roberts said. Dell expects to have this model in place by the end of the year.
The letter went to 500 of Dell's registered and certified MSP partners in the New York metro area--as far north as Connecticut and as far south as the New Jersey shore points. But the managed services will only be offered to customers in the New York boroughs, Roberts said, as determined by zip codes. Sending the letter to registered partners marks an expansion from the letter to Dallas-area partners in April. That e-mail was sent only to MSP registered partners, Roberts said.
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