Dell Slashes Partner Account Manager Ranks, Reduces Pay Level For Channel Reps
Dell Technologies has cut the number of partner account managers (PAMs) in North America, reducing the ranks of veteran channel managers and slashing the on-target earnings (OTE) for rep positions by as much as 30 percent, sources said.
Executives at multiple top Dell partners, all Platinum level or higher, told CRN they have lost highly respected, veteran partner managers that were best in class and have been replaced by PAMs with less experience who are being compensated at a lower pay level.
One top executive from a global solution provider said his company’s longtime PAM was recently terminated, while Dell’s specialty product sales rep assigned to his company was “coached out,” persuaded internally to take a different position.
“My PAM who worked and covered us for over 15 years got terminated last month. One of our product overlay reps took a new job and there’s going to be no backfill,” said the global solution provider top executive, who declined to be named. “Another product overlay rep is going to cover a region versus just being dedicated to us. … The Dell [PAM cuts] are big and broad.”
Another executive from a top regional solution provider said Dell’s PAM coverage is shrinking. “Dell’s channel account coverage is definitely getting smaller, and the coverage teams that they’re providing the channel teams have shrunk–they’re consolidating for sure,” said the executive, who declined to be named.
The regional solution provider executive said there was a “big change” in coverage starting in the second half of Dell’s fiscal year, which began in August. “Our account manager, who we loved, got taken off of us and moved to a different coverage area. We have somebody else now, but our new guy is covering more partners than our previous person did, where I felt we got a lot of TLC, a lot of eyes on what we were doing and a lot of help. It doesn’t feel like we’re getting that with the new guy because he pretty much told us, ‘I’m covering a lot of partners,’” he said. “It feels like Dell is asking them to do a lot more coverage than before, and Dell has also reduced our specialist resources.”
The upheaval in the PAM ranks comes as some top-level Dell partners are looking at moving PC customers to HP and Lenovo in the wake of an effort by Dell to take more laptop and desktop sales in North America direct.
Key executives at multiple high-level partners have been advised by their Dell PAMs that pushing client deals direct instead of through solution providers is now one of Dell’s top priorities, the executives said (see related story).
Solution providers said Dell’s PAMs have been critical in helping grow business through account planning and quarterly business reviews.
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