Dell Answers Its Loudest Critic

Most Dell (DELL) investors anxiously await the company's latest quarterly earnings announcement, scheduled for November 29. But you should also circle December 5 on your calendar. That's when Dell is expected to announce its latest "channel strategy," an ambitious strategy to sell iIT products through 15,000 U.S. technology consultants and integrators.

Dell's march to the December 5 partner announcement hasn't been perfect. Although I'm very impressed with Dell's recent acquisitions -- especially the Everdream acquisition and Silverback Technologies takeover -- plenty of skeptics remain.

In particular, hundreds (perhaps thousands) of so-called managed service providers (MSPs) don't trust Dell and openly question the company's commitment to partnerships. MSPs are computer consultants who remotely manage and protect customer networks using online tools. Companies like Silverback helped to shape the early MSP market. Now, some skeptics think Dell will use Silverback to compete with potential partners.

Dell's biggest challenge, however, is a trade publication call CRN (formerly known as Computer Reseller News). CRN is written for technology consultants and integrators -- the very readers who spent the 1990s competing against Dell's direct sales strategy.

A few weeks back, CRN wrote a piece noting 10 key challenges that could destroy Dell' partner strategy before it even gets off the ground on December 5. To Dell's credit, the company has provided a point-by-point response to CRN's skepticism.

I like Dell's aggressive response, and the company's willingness to speak with its critics more frequently. The new Dell, I believe, is making progress. I recently gave Michael Dell some good grades for his turnaround strategy.

For better or worse, Dell's stock will move after earnings on November 29. But don't forget to circle December 5 on your calendar. That's when Dell will answer its biggest critics of all.

Disclosure: Author has a long position in DELL