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How will the birth of Dell Technologies impact Aussie distribution?

Leon Spencer | Sept. 8, 2016
Local distributors prepare for post-merger landscape

"Their successful partnerships speak for themselves. Dell has embraced distribution and the overall solution provider channel in ways that are literally unprecedented. We are optimistic about their planned future with EMC."

While there has been no firm indication from local distributors as to whether rival vendors are preparing to alter offerings in any way to compete with the consolidated Dell-EMC, it's clear that the merger will be top of mind for the immediate future.

"At this early stage we would not expect to see any material impact on our business in general," Distribution Central CEO, Nick Verykios, told ARN.

"There hasn't been any change leading up to the merger, and there are no high-impact variables we can identify that would post.

"In saying that, like all mergers of this magnitude, our channel partners will make decisions as to whether they chose to support the merged entity or not. There's always fallout, and this merger is not immune from such. We are monitoring this closely."

As with most of the local Dell-EMC distributors, many of the Australian distributors carrying products from vendors competing with Dell and EMC's portfolio are taking stock of the situation post-merger before making moves to re-jig their offering - if they do at all.

However, some voices in the industry expect the merger to result in changes among competitor vendors and channel partners.

"Dell's partner base will now be able to offer enterprise level solutions, service, and support to their SMB customers," CompTIA senior vice-president, Nancy Hammervik, said following the acquisition announcement in October last year.

"Of course, its competitors will look to sweeten their alternative options and take advantage of the time it takes to transition.

"This means partners need to be savvy in protecting their own interests and the interests of their customers."



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