The VAR Guy

Dell surprised lots of folks with a strong quarterly earnings report yesterday. But the company didn’t surprise The VAR Guy. He knew Michael Dell would begin to turn the company around. Still, is Dell’s recent momentum most associated with cost cuts — or is the company beginning to gain some traction with managed services and IT channel partnerships?

Frankly, The VAR Guy thinks Dell is still in Stage I of its turnaround: Effective cost cuts.

After all, look at this blanket statement from Dell, which essentially says the US market for computers is weak right now:

The company is seeing conservatism in IT spending in the U.S. particularly with its global and large customers as well as public, small and medium business accounts.

Ouch. Doesn’t that cover just about everyone? (Except The VAR Guy, of course, who continues to spend money he doesn’t have on new computers.)

Next Moves?

In Stage II of Dell’s turnaround (2009?), The VAR Guy expects Dell to speak far more vocally about its success with selected solutions providers and managed service providers. That assumes Dell will actually have success with those audiences.

Unlike some channel reporters, The VAR Guy thinks Dell will get its partner strategy right — because the channel is key to driving Dell sales higher, and ultimately Dell’s stock higher.

But it’s still early. And there will be plenty of opportunities for Dell to stumble with channel partners in the months ahead. All it takes is one rogue Dell sales manager or one comment taken out of context to set off solutions providers, many of whom remain wary of Dell’s direct sales heritage.

The VAR Guy is keeping an open mind. Will solutions providers?