Dell EMC readies partners with flexible consumption models

Dell EMC said partners can offer flexible consumption models, which aim to reduce financial risks for customers with changing infrastructure requirements.

Dell Financial Services is arming Dell EMC partners with new flexible consumption models for selling infrastructure.

Revealed at Dell EMC World 2017, the flexible consumption models aim to ease technology procurements by reducing large capital investment costs for customers. The consumption models are offered through Dell Financial Services and cover a range of infrastructure purchases, such as storage, hyper-converged infrastructure (HCI) and virtual desktop infrastructure (VDI).

"This is for customers that are in a hyper-growth mode, or customers that are really perplexed about the direction that they need to take their data center solution," said Darren Fedorowicz, vice president of partner solutions with Dell Financial Services.

According to Dell EMC, the flexible consumption programs include:

  • Flex on Demand. Customers can pay only for the storage capacity they need and avoid overprovisioning. Additionally, customers install a "buffer capacity" for usage that exceeds their agreed-upon storage capacity. Dell EMC partners that sell Flex on Demand receive an upfront margin payout based on a customer's capacity commitment.
  • Cloud Flex for HCI. Under this model, partners can provide customers with a "cloudlike consumption model" for Dell EMC hyper-converged products. The offering is currently available for Dell EMC VxRail and the XC Series, with a plan to add VxRack Systems in the third quarter of this year. Partners receive margin annuity, with 50% paid upfront and incremental margin payout over time, the vendor said.
  • Dell Technologies PC as a Service. The offering combines Dell Technologies' hardware, software and end-to-end services, such as deployment, management, security and support. Customers pay a single price per seat, per month.
  • Dell EMC VDI Complete Solution. Customers will receive the virtual desktop infrastructure, software, and the option of thin clients and services. The offering is based on VxRail Appliances or vSAN Ready Nodes.
  • Dell Technologies Transformational License Agreement. According to Dell EMC, the TLA model provides a simple software agreement for licensing and maintenance.
[There is] uncertainty of what storage technology [that customers] are going to need today and what they are going to need in a year or two years and how much they are going to need.
Darren Fedorowiczvice president of partner solutions, Dell Financial Services

Dell EMC partners can benefit from offering these consumption models in a variety of ways, Fedorowicz said, who spoke specifically to the Flex on Demand and Cloud Flex for HCI programs. In both these programs, Dell EMC partners maintain control of their sales campaigns, margins and pricing, and will receive 100% tier credit.

In the case of storage, Fedorowicz said Dell EMC is seeing a transformation in how customers want to consume and pay for the technology. "[There is] uncertainty of what storage technology [that customers] are going to need today and what they are going to need in a year or two years and how much they are going to need," he explained. "What we are hearing is they need more flexibility ... and they also want to have it on premises -- or at least have the ability to have a hybrid or some on-premises storage."

Fedorowicz added that Dell EMC partners have heard the same from their customers. "When we introduced these programs, we were thoughtful to make sure we could also allow partners to participate and position it, because they are trusted advisers and focused on customer needs," he said.

"I think any of the partners that are focused on data center or storage are going to have an opportunity to leverage these [flexible consumption] programs," Fedorowicz said.

Although he didn't share exact numbers, he said Dell EMC has several partner-generated deals relating to the flexible consumption models in its sales pipeline. "I think there is a lot of activity and positive energy around it," he said.

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