Dell hopes to save corporates approximately $150 per machine by selling all its kit online and will change its sales teams? incentives to win corporate business from indirect IT suppliers.
Speaking at the Hambrecht & Quist Technology Conference in San Francisco, Dell chief financial officer Tom Meredith said the direct selling hardware giant will divide its sales teams into groups, depending on which type of customer they serve. "We will have separate business sales units which are compensated by business segment later this year," he said.
As always, Dell will compete on price and it sees the Internet as the most cost-effective method of selling kit. "Over time, we would like 100 per cent of our sales to be Internet-based," Meredith said. "That is our drive." He refused to divulge what margins Dell can make with online sales but revealed: "Our corporate customers estimate they have $150 per box less cost for buying on the Internet. This is good for us against indirect players."
Apart from sales teams? incentives and low prices, Meredith claimed the company does not need any other methods to win business from Vars, SIs and integrators. "We have overtaken big Vars lately so its a case of maintaining our leadership position."
Although Dell already uses Internet-based hardware ordering and support, it is tailoring the system to offer more services and to assure customers that transactions are safe. Meredith said Dell will offer Internet-based configuration and information access as it moves its sales model online.
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