Dell South Africa has issued a press release around its imminent entry into the local channel but, instead of clarifying the issue, the missive has muddied the waters even more.
As reported on IT-Online on Monday, Dell will officially appoint Drive Control (DCC) as its first distributor in South Africa tomorrow (Friday). Until this press briefing, both parties have declined to talk to the press.
However, in the press release from Dell, local MD Stewart van Graan is quoted as saying: "… We will also be engaging with distributors, who will effectively address a large part of the market, including broadening our reach into the small and medium enterprise (SME) market segment."
Now, despite the plural on "distributor", we can reliably confirm that Dell SA will only appoint one distributor – DCC – for the immediate future. There will be another disti appointed, but this is only likely to take place early next year to allow DCC time to bed down and streamline the full portfolio of Dell products within its reseller base.
DCC will have full access to all of Dell's products, sources say, including notebooks, desktops, servers, printers and storage.
The same sources indicate that DCC will be ordering direct from Dell in Ireland and that its initial order on Dell will be in the region of $2-million.
We will have all the "official" details tomorrow.
In the meantime, for those that are interested, here is the full press release that was issued:
DELL LAUNCHES GLOBAL CHANNEL STRATEGY
Johannesburg, South Africa, 22 April 08 – As part of a new global strategy, Dell is formalising and expanding its partner relationships, in order to provide customers with an increased range of choices in terms of where they can acquire Dell products. To this end, the company will be working far more closely with the channel than it has done previously.
“We are executing on a global strategy designed to increase customer choice. Dell’s evolving business strategy combines our direct customer model with new distribution channels to reach additional consumers and small businesses through retail partners and value added resellers.. Dell has already built a $60 billion business on its direct sales model, but working more closely with the channel will simply provide us with better market coverage, as we will now be taking product to markets we have not addressed before,” says Stewart van Graan, MD of Dell South Africa.
“For example, we have not addressed the consumer market before, but now we will focus on retail and other consumer routes to market via the channel. We will also be engaging with distributors, who will effectively address a large part of the market, including broadening our reach into the small and medium enterprise (SME) market segment”
“Ultimately, this is part of Dell’s global, long term strategy, so we have put a lot of thought and serious investment into it and we have the right programmes backing it in order to ensure we have the right partnerships within the channel, to provide the best kind of choice to customers,” he concludes.