Dell issues “immediate relief” Covid-19 package to embattled partners

Joyce Mullen (Dell Technologies)

Dell Technologies has stepped up efforts to help partners overcome rising challenges related to Covid-19 through an “immediate relief” package designed to address financing and cash flow difficulties.

In addition to one-time market development fund (MDF) payouts, the technology giant is also offering free training for metal tier partners on select products, alongside zero per cent interest on server and storage purchases, backed by customer deferrals extending up to nine months.

“Covid-19 has changed the way we work, the way we interact, and the way we approach public health,” noted Joyce Mullen, president of Global Channel at Dell Technologies. “But it hasn’t changed our commitment to our partners. We have our partners’ backs. We always have, and always will.”

“We understand that financing and cash flow liquidity play an important role in any business continuity plan. Many of our partners may need help in this area as they try to serve their customers and help their employees remain productive during this difficult time.”

Effective immediately, Dell is providing a one-time cash payout for up to 50 per cent of current partner MDF balances for use towards future marketing activities, with the aim of providing immediate payment up front to ease cash flow concerns. Applications are now open and run until June 20.

For metal tier partners - spanning Titanium, Platinum and Gold - the vendor is offering fee-waived services deployment training for Unity XT, VxRail and DP4400 products, running until May 31.

“We are also introducing new team-based pricing options for solutions providers to make all training more affordable for our partners’ teams,” Mullen added.

From a distribution perspective, Joyce said Dell is removing client solution growth targets for the first half of FY21, while increasing base rates to improve earning predictability.

“This is aligned with our removal of target-based programs for solution providers announced in February 2020 as an effort to simplify and improve earning predictability in our rebate structure,” Mullen explained.

Financial aid

The vendor is also directing the channel towards its Working Capital Solutions (WCS) program, which currently supports more than 1500 partners across 74 countries.

“Through Dell Technologies’ preferred financing vendors, we offer our resellers and distributors some of the most favourable payment terms in the industry, as well as increased credit capacity and simplification of partner accounts payable management through online tools - all of which may help partners’ business grow,” Mullen added.

According to Mullen, the program also complements Dell Financial Services (DFS), the vendor's financing and leasing division.

“Partners whose end customers use DFS may receive payment in as quickly as two days, and if they’re using WCS, in most scenarios, partners who qualify can benefit from 60 to 90 days payment terms extension to pay their financing vendor,” she said.

“WCS offers flexibility for partners to extend up to 120 days from the invoice date (subject to financing vendor approval) for an incremental fee negotiated with the financing vendor, providing adaptive liquidity solutions.

“WCS enables partners to win bigger. With WCS, partners can meet end user demand for longer invoice payment terms. With a range of 60-90 days for qualifying partners, the partner cash conversion cycle can be fully tailored to mirror the payment demands of their end user.”

Delving deeper, Mullen said plans are in place to roll out flexible repayment terms through DFS, to help partners manage cash flow and end-user credit risks. Available until 1 May, each solution can be fully customised to customer requirements, with a focus on deferred payment schedules and zero up-front costs to help preserve capital.

Specifically, Dell is offering 24-month financing at zero per cent interest for servers and select storage products, in addition to 36-month financing at 3.99 per cent interest for the “majority” of the vendor’s suite of offerings. This is alongside six-month term and rotation lease options for select laptops, thin clients and mobile workstations, as well as up to nine month deferrals for qualified credit.