As reported all week on IT-Online, Dell this morning officially appointed Drive Control (DCC) as its first volume distributor in South Africa – and the companies are confident the move will boost both their revenues and marketshare.
Stewart van Graan, MD of Dell South Africa, says that up until its first foray into the local channel with DCC, it had only addressed about 20% of the total market – the corporate sector. Now, with an expanded product portfolio to address the consumer and SMB sectors – along with the appointment of DCC – it can cater for the additional 80% of the market it has traditionally been excluded from.
"Our current marketshare is between 8,3% and 9% and to put that in context, that is exclusively in the 20% of the market that we currently cater for – it excludes the other 80% of the market," Van Graan says. "When we address the other 80% of the market, we expect to see our marketshare grow to plus-12%."
Neil Rex, MD of DCC, says the Dell appointment is the third most important step it has taken in its 20-year history and that he expects it to boost the distributor's business by between 20% and 25%.
"Today marks the third most relevant step DCC has taken in terms of its business, the first being the opening of our doors and the second being the acquisition of (consumables company) Cosi," Rex says. "I really believe that in the next nine to 12 months we should grow Drive Control by 20% to 25%, so it's a very exciting step for us.
"All the success we've had over our 20 year existence has been without offering a complete solution," he adds. "Now, for the first time, we can offer a complete server, desktop and notebook solution to our partners."
The appointment of DCC by Dell is likely to see the distributor relinquish its current notebook supplier, Toshiba, but as far as Dell is concerned its partnership with logistics partner Technogistics wil continue. Technogistics, headed by former SDD MD Colin Flatau, has carried out all the logistics for Dell to its direct partners for the past seven years or so.
"Technogistics is still our logistics partner and will remain so," Van Graan says. "There may be some overlap sometimes, but it's a case of finding the right balance so that there is enough business for everyone."
Likewise, Dell's current direct partners will have a choice of sourcing kit either from Dell direct, or from DCC.
"As much as our customers now have additional choice, so too do our partners," Van Graan says. "A lot of our direct partners are solution providers and work on long-term projects involving customisation, so Dell Direct is ideal for them in this situation. But there will be no restrictions on partners dealing with DCC if they want instant gratification."
Van Graan also confirmed that Reggie Nxumalo, former IPG head at HP and, more recently, responsible for OEM at Microsoft SA, will be joining the local Dell office to address its consumer business.
"We have built up an experienced business around managing the channel," Van Graan says. "David Futter has extensive channel experience, Reggie is strong in consumer. We're clearly getting the right skills on board and it is important now that we manage and delight the channel."