"We purchased the array through Dell for their support of EMC products," said Mark Craft, systems administrator at Dewberry and Davis. "So far, they haven't had any complaints."

But such a deal represents a big source of complaints among EMC solution providers. Many say the Hopkinton, Mass., storage vendor's Clariion reseller pact with Dell,now a year old,is squeezing their business because the direct computer seller wields a pricing advantage. Some EMC channel partners, in fact, say that Dell hardware in the data center almost ensures a lost sales opportunity for them, and others are concerned that Dell, Round Rock, Texas, could gobble up other segments of the EMC channel.

Their dismay comes with good reason, since Dell has become EMC's biggest storage reseller. EMC CEO Joe Tucci said at a latest conference that one-third of the vendor's Clariion revenue comes via Dell, with solution provider and direct sales also each accounting for one-third of the product line's revenue. The Dell business, however, is the fastest growing segment of the three, Tucci said.

The Dell-EMC alliance particularly has become a thorn in the side of storage solution providers in the enterprise Windows space. For example, Pat Edwards, vice president of sales at Alliance Technology Group, a Hanover, Md.-based solution provider, bristles when people call Dell a reseller of EMC products.

"We're not in the same category with Dell," Edwards said. "EMC gets away with [selling around solution providers by saying that they don't sell direct. They sell to a direct manufacturer like Dell and wash their hands of it."

For storage-only solution providers, selling to a customer that has Dell servers in place is tough, Edwards noted. "If I want to compete there, I have to sell Hewlett-Packard, IBM or Sun servers. But I don't lead with servers," he said. "I will provide servers as a bundle with storage if customers need it. But it's not their business."

If a solution provider enters a customer site and sees Dell products on the floor, it's assumed that the customer shops only for the best price, Edwards added. "Our salesperson will ask if the customer is talking to other vendors. If they say no, they know they're lying," he said.

The Dell relationship is one of the few black marks on EMC's otherwise channel-friendly record, the storage vendor's partners say. Yet Gregg Ambulos, vice president of global channels at EMC, said there's no reason for solution providers to compete with Dell head-to-head on Clariion arrays.

Most of EMC's Dell business should come from the low-cost Windows NT market with EMC's new CX200 entry-level array, while solution providers can serve customers with the midrange CX400 and enterprise-class CX600 arrays, Ambulos said. What's more, solution providers' ability to offer customers complete solutions separates them from low-cost providers like Dell, he said.

"If a solution provider wants to compete head-on with Dell on hardware price, nine times out of 10 Dell will win," Ambulos said. "But if they target solutions, nine of 10 times the VAR will win."

While Dell receives better pricing from EMC than solution providers do, the arrangement is no different than the volume pricing EMC offers its largest partners, Ambulos said, adding that he can't recall a single solution provider that has left EMC because of its Dell relationship.

"If this was having a dramatic impact on the market, they would have a lot of partners question the relationship," he said. "Dell is a key partner of ours, but so are other channel partners."

J. Edward McCann, regional manager at Continental Resources, a Bedford, Mass.-based solution provider, said his company isn't very panic about competition from Dell right now. "Dell has done a real good job with its pricing. Once a customer has Dell servers, storage sales are tough. But if they are talking about a large solution, they can beat Dell," he said.

However, as Dell grows the market share for its EMC arrays in the Windows space, there's nothing to prevent it from entering the Unix space, said McCann, whose company is a Sun Microsystems partner.

"If Dell comes in from the NT side to my Unix side and offers service contracts that cost a third of mine, it will hurt the channel. If there is a large enough price delta, common sense says it will hurt us," he said.

And that scenario stands as a real possibility, if things go according to Dell's plans. When EMC introduced its CX600 array in August, Dell said it would use the array to enter the heterogeneous Unix/NT enterprise space and target Unix-only shops for the first time with its commodity-based pricing model.

But since then, Dell has relied on services and its ability to target key markets to ensure that it doesn't compete on price alone, said Terry Klein, vice president of the Advanced Systems Group for Dell Americas. Dell, which sells the Clariion arrays under the Dell-EMC name, is rarely the low-cost leader, Klein said. About 80 percent of the installation and product-readiness services related to Dell servers and Dell-EMC arrays are done by Dell staff, with help from EMC personnel when needed, he said.

"Because they mandate these services, they find that [with the genuine end-user sales price for the entire bundled configuration, they are rarely the low-cost Clariion provider to an end user," Klein said.

"We may have really aggressive hardware rates, but they find that very few other [EMC channel partners are mandating three years [of warranty or their own installation and/or minimal set of product readiness," he said. "Most of them have one year of service-type of warranty agreements. It's something that they battle with their sales organization about because that's not a typical Dell proposition. We're used to being low-cost, and they end up having to sell more on the value of understanding how this space works."

Because of such services, Dell ends up with a higher price than its competitors,including solution providers,in about eight out of 10 cases, according to Klein. However, about 95 percent of storage sales have gone into Dell server environments, he added.

"There are very few cases where we're going to sell the EMC product where they don't already have the servers," Klein said. "[These customers value their knowledge of Windows. They value their knowledge of the Linux environment. And they value us doing complete sets of server-storage consolidation. If they don't have that element with the customer, it doesn't matter if we're the low-cost provider or the high-cost provider. They won't buy it from us."

The frequency with which Dell competes against solution providers depends on the customer type, according to Klein. For instance, in the Fortune 2000 space, it's rare for Dell to go up against EMC channel partners, but in the government space,where Dell's server market share tops 50 percent,competition depends on which integrator owns a particular government contract, he said.

Similarly, while Dell pretty much owns the state and local government market and the education space either directly or via its relationship with EDS, it has trouble against EMC partners in the health-care arena, Klein said.

Indeed, if EMC solution providers leverage the Dell-EMC relationship, it can mean more business for them, said Bill Taylor, director of EMC's global channel development group.

"I can certain you that a lot of their partners are doing well with the Clariion business because of all the Dell hype," Taylor said. "It's a brand-name recognition game."

Some solution providers say they're finding that Dell's sales of Clariion arrays can even benefit their business. "We can get some services from Dell because of customer needs," said Chris Swahn, national president of sales at Amherst Corporate Computer Sales and Solutions, Merrimack, N.H. "Our technology, integration and delivery capabilities offer value to their customers. They do a lot of imaging, ghosting and loads on Dell servers."

For Amherst, the Dell-EMC alliance is a minimal factor in the midrange and enterprise spaces, but that could change, said Swahn. "Even in the midrange shops that have Dell relationships, we're not seeing a lot of action with Dell storage. Of course, maybe the other shoe will fall, and [Dell will come in later," he said.

A former EMC partner, Amherst is mulling the possibility of reuniting with the vendor now that its channel-unfriendly past is fading away, according to Swahn.

"EMC wants to get into the SMB market. [Now they're looking at how to do it," he said. "They already have the best technology. So we're evaluating them again, based not on technology but on their channel capabilities."

Alliance Technology Group also had previously dropped EMC's Clariion line, but the solution provider recently decided to restart its Clariion relationship with the vendor, Edwards said.

And those solution providers likely will see more competition. Looking ahead, Dell and EMC executives expect their relationship to expand.

In late October, the vendors announced that EMC had licensed Dell to manufacture the entry-level CX200, slated to ship early this month. EMC's Tucci also said he isn't ruling out the possibility that Dell could eventually make Clariion storage arrays for the rest of EMC's channel,a move that some industry observers say would put EMC partners in the difficult position of purchasing EMC products from its strongest competitor.

"We are not closing any doors," Tucci said. "We continually [review it, like any relationship. In any relationship, you plant the seeds, grow and learn from each other. Right now, far and away, the volume seller by Dell will be the CX200. And they are manufacturing it to control their own destiny."

The fact that future EMC arrays could be manufactured in conjunction with Dell doesn't concern Kevin Reith, manager of strategic technology at Info Systems, a Wilmington, Del.-based solution provider.

"Who makes it is not important," Reith said. "I believe in the virtual organization: Do what you do best, and let others do the rest. So it doesn't bother me. What's more important is how they support and market the products."

STEVEN BURKE contributed to this story.

Kefa Olang has been writing articles online since April 2009. He has been published in the "Celebration of Young Poets" and has an associate degree in communication and media arts from Dutchess Community College, and a bachelor's degree in broadcasting and mass communication from the State University of New York, Oswego.

CRN is live at Dell EMC World 2017 in Las Vegas. Get all of ourr coverage of the event, as well content from the Dell EMC World 2017 special issue of CRN, here.

CRN is live at Dell EMC World 2017 in Las Vegas. Get all of their coverage of the event, as well content from the Dell EMC World 2017 special issue of CRN, here.

Dell EMC World News

Dell EMC World Special Issue

Dell EMC World: Transformation Titans Map Out Dell EMC's Path To Growth
With the right pieces now in place, Dell EMC's complete-portfolio call to action is being heard loud and clear across the partner ecosystem.

Marius Haas On Why There's 'Zero Debate' About The Value Of Dell EMC's End-To-End Portfolio
Marius Haas believes that when it comes to determining which vendor partner is going to provide you with long-term value creation opportunities, there's no debate that it's Dell EMC.

John Byrne On Partners Pivoting Away From Cisco, HPE, Lenovo, And Selling The Entire Dell EMC Portfolio
John Byrne says that Dell EMC partners are rapidly moving away from competing vendors and aggressively pushing new business opportunities across the entire combined portfolio.

Dell EMC's Cheryl Cook On The Combined Partner Marketing Perspective
Dell EMC's global channel marketing chief Cheryl Cook talks to CRN about the importance of communication when combining the marketing efforts of two massive partner programs.

Chad Sakac On Dell EMC's Push To Turn Hyper-Converged Infrastructure Into A Utility
Dell EMC is putting the 'pedal to the medal' when it comes to hyper-converged infrastructure and is tasking Chad Sakac and his team with making customer transformation as simple as possible for partners.

Jeremy Burton On How Partners Can Take Advantage Of A Combined Dell, EMC
Ahead of Dell EMC World 2017, Jeremy Burton dug into the blockbuster acquisition and how it primes partners to take advantage of the new combined company.

Dell EMC's David Goulden On What It Means To Be The Biggest Player In Storage
Ahead of Dell EMC World 2017, David Goulden talks to CRN about the new combined storage powerhouse and why you won't heard anyone referred to as 'ex-Dell' or 'ex-EMC.'

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The Biden administration is trying to hike the threshold under which hourly-wage work regulations apply by about $25,000 per year. The proposed overtime rule threatens to throw millions of workers out of their salaried jobs and into hourly work, leading to lost flexibility and autonomy, benefit and wage cuts, and job losses.

The Fair Labor Standards Act requires that hourly employees be paid 1.5 times their usual rate for any hours worked over 40 in a given week. Employees who receive regular salaries, regardless of the hours they work, are exempt from overtime requirements, so long as they pass a duties test and are paid a minimum salary level. (Certain occupations like teachers and lawyers are exempt altogether.)

If the rule is finalized, employers who have salaried employees earning between the current threshold of $684 per week ($35,568 per year) and the proposed threshold of $1,158 per week ($60,209 per year) will have to decide whether they will convert them to hourly workers, trade salary increases for benefit cuts, or eliminate their jobs. According to data from the Bureau of Labor Statistics, 12.3 million workers fall in this range.

Since the cost of living and wages vary significantly across the U.S., and the proposed overtime rule sets the same salary threshold throughout, workers in lower-cost areas would face the greatest consequences. For example, while fewer than 50% of workers in the District of Columbia, Massachusetts, and Washington state have earnings below the proposed threshold, more than 70% of workers in Arkansas, Mississippi, South Dakota, and West Virginia have earnings below the proposed threshold.

Given the massive increase in the salary threshold, and the fact that the proposal includes automatic future increases, most employers will have to make major changes to their workforces, including:

• Workers may lose their jobs. Employers may prevent cost increases by eliminating jobs, automating job functions, and shifting more work onto remaining salaried employees. A study of latest overtime rule changes in the U.S. found a 3-to-1 ratio of employment losses to income gains and an increase in inequality.

• Employers may reduce workers’ benefits, hours, or base pay. Employers could keep compensation constant by reducing or eliminating benefits like retirement contributions and paid time off. Moreover, a study showed that employers have responded to forced wage increases by reducing workers’ hours enough that employers no longer have to provide them with health insurance. Or employers could do what IBM did in response to an overtime lawsuit settlement: Reduce workers’ base pay by 15% while keeping total compensation unchanged.

• Many workers could experience smaller, less consistent paychecks. When workers are converted to hourly employees, they get paid only for the hours they work. Where a salaried employee may take two hours off for a child’s doctor visit without any change in pay, an hourly worker would receive a smaller paycheck.

Moreover, employers may maximize efficiency by altering work schedules. In California, an increase in the minimum wage left workers with fewer hours and significantly smaller paychecks. Employers also resorted to on-demand scheduling, changing workers’ start times and total hours.

• A loss of flexibility and remote work options. Legal liabilities make it difficult and risky for employers to allow hourly employees to have flexible schedules or to work remotely. Consequently, parents currently able to leave work an hour early to pick up kids from school and to finish up work at home could lose that option. Young workers who want to come in early or leave late to learn the ropes and make a good impression could be prohibited from doing so, and shift managers who want to trade Sunday for Monday shifts would no longer have that option because their employer would have to pay them each time-and-a-half.

• Workers could be pushed into underground employment and lose workplace protections. The rule proposes a 159% increase in the overtime threshold in Puerto Rico—a level that encompasses more than 90% of Puerto Rico’s formal workforce. With many workers in Puerto Rico already pushed into underground employment due to costly labor market regulations, the proposed regulation could cause many Puerto Rican workers to lose their formal jobs and the workplace protections that come with them.

In addition to the millions of workers adversely affected by this regulation, the economy at large would suffer. A Congressional Budget Office study of a similar proposed overtime increase found that its benefits were far less than its costs. Overall, it would raise prices for consumers, lower family incomes, and reduce employment.

Instead of imposing costly new regulations in an attempt to force employers to pay higher wages for the same work, policymakers should enact policies that help workers produce and earn more while also keeping doors open to flexible work opportunities.

Have an opinion about this article? To sound off, please email letters@DailySignal.com, and we’ll consider publishing your edited remarks in their regular “We Hear You” feature. Remember to include the URL or headline of the article plus your name and town and/or state.

Usio Announces Strategic Partnership with Leading Benefits Administrator, Genius Avenue

Usio, Inc. (NASDAQ:USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced it had entered into a Strategic Partnership with Genius Avenue, a leading benefits administration company.

Genius Avenue has selected Usio to power their new, comprehensive FinTech solution focused on regulated enterprise businesses particularly in insurance, benefits, and healthcare. This unique new solution will leverage Usio’s state-of-the-art technology to deliver a comprehensive suite of payment capabilities, including ACH payment processing and a prepaid card program for digital disbursement, as well as other innovative financial management tools, such as commission automation. All of these capabilities will be integrated with Genius Avenue’s advanced member management and sales platforms. This partnership will increase the value delivered to end users by enhancing the financial capabilities and improving the experience of customers.

"We are excited to be entering into this partnership with Genius Avenue, one of the fastest growing and most innovative companies in their industry," said Louis Hoch, CEO at USIO. "Utilizing their comprehensive suite of payments technologies, Genius Avenue can offer their end users a wide variety of payment and disbursement channels, with the comfort that comes from knowing it is supported by a cutting-edge payment platform that meets security requirements demanded of regulated enterprises."

Liam Maddock, Vice President, Marketing at Genius Avenue, said, “We are thrilled to partner with Usio and leverage their advanced payment processing capabilities. Genius Avenue is set to redefine the member experience by offering unparalleled efficiency and flexibility in financial transactions. Together, they are forging a path that will transform the insurance, benefits, and healthcare industries, driving value for their clients and their customers alike.”

Genius Avenue powers the insurance and benefits industry with custom capabilities and innovative, customer-centric platform solutions that connect products to consumers and increase the bottom line. Through this partnership, Genius Avenue will now be able to offer businesses an array of enhanced financial technology solutions, including:

• Commissions & Incentives - an automated hub centralizing commission and incentive payment management, consolidating data from various platforms, elevating user experiences, reducing overhead costs and streamlining internal operations.
• Payments Facilitation - a digital payment platform streamlining onboarding and management of ACH, credit & debit transactions; leverages Usio API and enhances operational efficiency.
• PayFac+ - A payment facilitation solution with dynamic fund issuing and acquiring, integrating solutions such as TPA/member management and upcoming functionalities like Genius Store Front, a product marketplace, as well as digital disbursements.
• Point of Sale Lending - An integrated lending platform for merchants, leveraging API integrations with Usio for payments and Tua for user lending, enhancing both merchant and user experiences.
• Digital Disbursements - An adaptable digital payment platform that assists businesses in handling a range of disbursement methods, including prepaid cards, e-wallets, and virtual bank accounts. This platform provides clients and consumers with payment flexibility, seamlessly integrates with the Usio API, and enhances operational efficiency.

For further information on how this partnership can benefit your business, please contact Liam Maddock, liam.maddock@geniusavenue.com.

About Genius Avenue

Genius Avenue is a leading benefits administration company founded in 2013 which delivers highly efficient individual and group benefits member engagement platforms and solutions including member enrollment, product sales, group and individual billing, commission automation, payments, billing, and reconciliation.

About Usio

Usio, Inc. (Nasdaq: USIO), is a leading Fintech that operates a full stack of proprietary, cloud-based integrated payment and embedded financial solutions in a single ecosystem to a wide range of merchants, billers, banks, service bureaus and card issuers. The Company operates credit/debit and ACH payment processing platforms, as well as a turn-key card issuing platform to deliver convenient, world-class payment solutions and services to its clients. The Company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has a development office in Austin, Texas. Websites: www.usio.com , www.akimbocard.com and www.usiooutput.com . Find us on LinkedIn, Facebook® and Twitter.

Usio

Paul Manley
Senior Vice President, Investor Relations
Paul.Manley@usio.com
612-834-1804

View source version on businesswire.com: https://www.businesswire.com/news/home/20231204470957/en/

Today, India is slated to have approximately 6.3 crore MSMEs (Small and Medium-Sized Enterprises). As per data by the MSME ministry, 30,00,822 MSMEs were registered on the Udyam Registration portal. No doubt, the pandemic shook the foundation of small businesses in India. However, India’s small businesses continue to fire up the GDP and play a key role …

Strategies to Help Small Businesses Stay Competitive in Tough Times Read More »

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