Publicly, Dell Computer may be championing direct sales, but privately the company is benefiting from resources and programs normally available only to channel partners.
Microsoft confirms that at least one Dell division has received the Microsoft Certified Solution Provider designation. Dell also is part of an elite group of about two dozen U.S. Microsoft Large Account Resellers (LARs)--much to the dismay of some Microsoft software resellers.
Dell is one of a handful of OEMs that is an MCSP.Compaq Computer (as well as its Digital arm) and Hewlett-Packard are also MCSPs. But Dell is the only OEM that also is considered a LAR.
These channel designations are not new. Dell's internal customer-services division earned MCSP status in late 1997, say channel sources. Microsoft recently posted to its private MCSP Web site a case study titled "MCSP Program At Dell-A Winning Solution," those sources note.
In that case study, according to a copy viewed by Sm@rt Reseller, Dell officials boast that "To get Dell in the MCSP Provider Channel, the Microsoft Sales Channel had to be educated about the diversity of Dell's services. Dell did not exactly fit their profile of a candidate for this partnership."
The case study cites benefits Dell accrues as a result of its MCSP status. "As an MCSP, Dell is provided Microsoft tools and technology to better support our customers," according to the study.
Dell's participation in the LAR program is more controversial than its MCSP membership. LARs are Microsoft's channel for selling major license agreements to its largest customers.
"Dell's participation is not an accepted thing in the LAR community," says Howard Diamond, CEO of Corporate Software & Technology, a top Microsoft LAR. "At the [Microsoft] Reseller Executive Summit in April, it was a big deal. A few weeks ago in a meeting with Microsoft, it came up again. Dell is aggressively selling software in the marketplace against us."
In late November, Dell added DecisionOne and NCR to its Dell Service Provider program, whose participants provide a range of support services to Dell's direct customers. Others participating in that program include Wang Global, Unisys and BancTec.
Dell officials confirmed "parts of Dell are in the MCSP and LAR programs."
Microsoft says Dell and Compaq's Digital division are both in the LAR program, but say other LARs like Entex, GE Capital and Compucom all do channel assembly and sell hardware. "Our customers increasingly want to buy from a one-stop shop," says John Deegan, director of outbound sales for U.S. headquarter sales at Microsoft.
