Buying new storage? Get ready for the Dell EMC hard sell

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Posted on Wednesday, January 24, 2018

The storage sector is under increased pressure from cloud services as CTOs choose to outsource key elements of infrastructure. Sales of storage arrays remain flat – and there’s little indication that this is not the beginning of a permanent downward trend.

As a result, incumbent players including IBM, Dell EMC, HP and HDS are fighting to protect their margins – and maximize their share of a shrinking marketplace. Which is why Dell EMC has just announced a $2bn investment in sales of storage.

What’s happening?

According to reports released over the weekend, Dell EMC is hiring 1200 new storage sales specialists to help close more deals. They are also introducing channel sales quotas for the first time, placing additional pressure on partners to sell harder. In fact, it is these partner sales channels where Dell EMC see the greatest potential for their market share gains – hence the new, aggressive ‘refuse to lose’ strategy they are unveiling.

What does this mean?

Obviously an increase in market share means securing new customers, so we can expect to see more campaigns targeted at businesses currently using competing products. How this works is yet to be revealed, but we expect to see Dell EMC heavily discount products, and recoup those costs through more expensive maintenance contracts. As always, CTOs need to carefully check their math before committing.

Existing customers can also expect to come under increased pressure to buy more storage, and to upgrade existing systems earlier. Again, any incentives at the point of purchase are likely to be offset against costly maintenance contract renewals in future.

Buyer beware

For existing customers, an early upgrade could be a colossal mistake. Not only will they find that ROI on existing hardware is reduced, but the longer-term implications of increased maintenance costs could make the exercise even more expensive – and that’s before considering the cost implications of a disruptive migration/upgrade project.

CTOs would also do well to decide whether a regular upgrade is required. If existing Dell EMC storage assets continue to deliver according to business requirements, it may make more sense to exit the OEM upgrade cycle entirely. They can then increase their cost savings through third party storage maintenance, regain control of their data center – and avoid hard sell sales specialists too.

To learn more about all of your Dell EMC maintenance options – and how you too can ‘refuse to lose’ in the face of aggressive new sales tactics – please get in touch.

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