Dell touts channel as answer to creaking sales

THE WALL STREET JOURNAL got its hands on an internal memo from Michael Dell to his legions suggesting it will attempt to grow its sales by distribution rather than go direct.

The memo also said that Dell will open a factory in Brazil in May and one in India in July. The Chennai building is already well advanced.

Dell wants to make a mark in the rest of the world as well in the USA, Japan, the UK and Canada.

It will also attempt to compete with HP and IBM by peddling the message that IT projects shouldn't come with armies of consultants. It wants to simplify IT.

The plans include a project called Inside Idea Storm which will invite employees to make suggestions which will be listened to.

While Dell may attempt to woo the channel, it will face lots of opposition not just from the other vendors but from distributors and corporate resellers alike. These channel guys have a long memory and know that part of the reason their margins are slim is because Dell has eroded the value of their offering for many, many years. µ

L'INQ
Wall Street Journal subscription required