The news on Thursday that Dell would be acquiring ASAP Software in a continuing effort to make itself a presence with solution providers has many wondering whether the company is a positive or negative force in the industry.  Dell agreed to buy ASAP Software – a subsidiary of Corporate Express and one of Microsoft’s top resellers — of Buffalo Grove, Illinois for $340 million in cash.
    
Solution providers think that Dell will have more ability to deal with software licensing and more power, creating some pretty intense competition with those that wish to work with ASAP accounts.  However, others think it could be a potential partnership opportunity, depending upon how Dell handles its dealings with solution providers and VARs as part of these accounts.  

Dell is a top LAR of Microsoft too and often offers much more competitive software licensing opportunities and conditions than other VARs.  Last month, Dell caused some Microsoft VARs and solution providers some irritation when it decided that reselling Microsoft Open License software at cost as part of a promotion was a good idea.  This meant those purchasing SQL, Exchange, Office 2007, Windows Vista, Windows Server Standard, Small Business Server, Client Access Licenses, Project and SharePoint got an unbelievable deal.  This promotion signaled that Dell would be less likely to deal on a partnership level with solution providers that were working with ASAP, which is turning many of them off to the idea of working with the software giant at all.

Although Dell has claimed it is a new company, many solution providers don’t believe it could so quickly rethink its business strategy and be suddenly close with the solution provider channel.

Many solution providers also say that software licensing is a very small part of their businesses, so it is not a profit center.  If Dell treats it as a way to make money, it will not really affect many other VARs significantly.  Solution providers are much more concerned about the recent announcement that Dell had acquired managed services platform provider SilverBack Technologies.  This company partners with 150 VARs, and many are worried Dell will use it as an opportunity to sell remote network services directly to small and medium-sized businesses, thus cutting profit margins for solution providers.

Still, many believe that both the SilverBack deal and the ASAP deal combined indicate Dell is attempting in earnest to get more deeply embedded with other solution providers in the industry.  Some are thinking they should try to enter account discussions with Dell in preparation for increased involvement and competition.

For more information on Dell’s new position with solution providers, visit the attached link.  

Submitted By:  Computer Consulting Kit