Dell, Dongbu sign strategic alliance

Dongbu CNI CEO Lee Bong, second from left, shakes hands with Dell Korea CEO Kim Kyung-duk after Dell entered into a distribution agreement with the Dongbu Group affiliate, southern Seoul, Tuesday. / Courtesy of Dell Korea

By Kim Yoo-chul

Dell, a Texas-based computer maker, said Tuesday that it has signed an agreement with Korean solution provider Dongbu CNI in a bid to expand its business in Korea.

The partnership is calling for the Dongbu Group affiliate to take charge of distribution of all Dell-produced commercial and enterprise products.

This business transformation is pushing the U.S.-based maker to strike more strategic deals in Korea and a senior company executive was confident in them being able to consistently improve the corporate revenue, here, by selling customized solutions to its corporate clients.

“The agreement allows Dongbu CNI to retain an inventory of the products, which will certainly enable faster customer services, helping give a more diverse product portfolio to Dongbu’s reseller base,” Dell Korea said in a statement.

A senior corporate executive said the partnership is part of Dell’s corporate transition toward a total solution provider not just as a PC maker. Direct-marketing has so far been its key principle.

Meanwhile, that also means Dell is spending more to enhance its channel partners.

The statement said the partnership with Dongbu doesn’t mean Dell will change in the way the existing partners operate.

“Dell is transforming as an end-to-end solution provider from its previous focus on PC. That’s why we have been aggressive for acquisitions in a consistent manner. Active combination with hardware and software will help corporate growth,” said Richard Lee, the corporate vice president in-charge of its business in the Asia-Pacific Rim, in a news conference in southern Seoul.

Lee said Dell has robust, industry-standard x86 servers for big data requirements and stressed a recent high sale of the servers fueled optimism to narrow the gap with existing leaders in the corporate server market.

“Dell is the top in North America and Asia in servers. I have no doubt that South Korea should be the next. We are integrating business divisions under the “One Dell” global policy, meaning we are seeing our corporate value by making various changes,” said the executive.

Dell is expecting Dongbu’s nationwide distribution coverage will contribute to its expansion of sales network in Korea. On a related note, Dell said it plans to expand distribution channels thus establish nationwide after Dongbu and Daewon CTS.

In a question over the outlook in the global PC market, Lee said; “Dell has competitive edge in handling corporate business not consumer business in Korea as we’ve been operating qualified after-sales channels. We hope the partnership with Dongbu will help us realize an ‘economies of a scale’,’’ said the executive.

The statement said Dell will be providing credit options and next-day shipping through its partner networks. Dell Korea plans to expand its portfolios by supplying customized products through the “PartnerDirect” program.

“Dell is working more closely than ever with Korean companies. We purchase many computer components manufactured in Korea, such as memory chips and LCD panels,” said Lee.