CRN Exclusive: Dell Federal Embraces Distribution, To Work With Ingram Micro, Synnex

Dell has for the first time opened its federal business up to distribution, inking deals with Ingram Micro and Synnex to greatly expand its reach.

The broadline distribution giants will at last be able to sell Dell's entire array of client and enterprise products to solution providers that work with the U.S. government, adding value by wrapping an array of technical, sales and marketing support around the offerings.

"Our overall goal is to grow our federal business," Frank Vitagliano, Dell's vice president of global partner strategy and programs, told CRN exclusively. "What's important to us is that partners are accessing Dell product."

[Related: Dell Continues Distribution Blitz, Extending Perks To Top Ingram, Synnex Partners]

For this reason, Vitagliano said, the Round Rock, Texas-based vendor will leave it completely up to partners as to whether they want to source their purchases through Dell or through one of the distributors.

But even with distribution remaining optional for all Dell federal partners, Ingram Micro still expects Dell to become one of its leading federal vendors, said Tony Vottima, executive director of vertical markets for the Santa Ana, Calif.-based distributor.

"This relationship is beneficial from both perspectives," Vottima said.

Similarly, Synnex sees Dell as a top-five brand in the federal space, and is looking to take advantage of everything from its longstanding client computing footprint within the U.S. government to the vital Department of Defense certifications Dell just received for its networking products, said Eddie Franklin, vice president of public sector and vertical market sales for the Fremont, Calif.-based distributor.

"Dell is a premium brand in the federal space," Franklin said. "Their coming to the channel is certainly a sign that the products can be more successful."

Adding distribution to the Dell federal ecosystem builds upon stronger channel ties for Dell, which has seen its distribution business grow by more than 50 percent over the past year, Vitagliano said in May.

Nowhere has that sea change been more visible than with Synnex, which added Dell PCs, servers, storage, networking, converged infrastructure, software and Wyse virtual desktop to its commercial portfolio only in November 2014. Now, just nine months later, Synnex is also able to sell all of those products to partners in the federal space.

"You can't eat the whole animal in one bite," Franklin said.

Dell also works extensively with Tech Data in the commercial space, but decided to limit its federal partnership to Ingram Micro and Synnex as those two are the most heavily involved with the U.S. government.

"If you become over-distributed, nobody makes money in the supply chain," Vitagliano said.

Tech Data CEO Bob Dutkowsky told CRN on Thursday that Tech Data is not that involved with the U.S. government, instead opting to deploy its public sector resources to school districts and state and local government.

Some Ingram Micro partners were initially concerned that their relationships will Dell's sales force could suffer if they started to source their federal purchases through a distributor, Vottima said. But Ingram Micro quickly alleviated those concerns and reassured solution providers that they could leverage the distributor's services and capabilities while maintaining a tight bond with Dell's salespeople.

To grow this business, Ingram Micro has established a dedicated team of more than 30 sales, marketing and engineering experts focused specifically on Dell's federal practice. Similarly, Franklin said Synnex will have dedicated product management and business development teams for its Dell federal practice.

Vottima said the distributor's initial focus will be on converting existing Dell federal partners to sourcing through Ingram Micro and adding Dell to the line card of Ingram's current federal resellers, with a long-term focus on getting existing Dell commercial partners certified to sell to the U.S. government.

Four Points Technology plans to begin leveraging Ingram Micro for assistance with supply chain management, trade agreement compliance and ancillary products and services around its Dell federal business, said Joel Lipkin, chief operating officer for the Chantilly, Va.-based solution provider.

"Dell is the last company standing with a true end-to-end solution under one logo," Lipkin told CRN. "Bringing those two enormous powerhouses (Dell and Ingram Micro) together is really going to expand our reach and capabilities."

PUBLISHED AUG. 24, 2015