HP ISSUES A STARK TREATS TO PARTNERS

[Anonymous]

HP chief issues a stark warning to partners

Hewlett-Packard’s chief executive vows to treat VARs that don’t commit to its products harshly

12 Sep 2005
Hewlett-Packard has given
its channel partners another shake up, as chief executive Mark Hard
stated he will rule partners with an “iron fist”, and threatened to cut
market development funds (MDF) on certain deals.

Just days before HP’s Global Partner Conference, which starts tomorrow
in Las Vegas, Hurd said: “[HP] will have an iron fist when doubling
down on partners,” according to reports.   He added that HP
will not pay MDF to partners that sell solutions which contain less
than 35 to 40 per cent of non-HP components.

Dave Poskett, director solutions partner organisation (SPO) HP UK,
reinforced Hurd’s tough line.   “Mark Hurd’s recent comments
resonate very strongly with the UK HP SPO. We have made it very clear
over the course of the year that we want to work with partners that are
motivated to sell our products.

“HP’s route to market strategy is dependent on the strength of its
partner and we are committed to partners who want to work with us.”
 

Earlier this year CRN revealed how HP announced a cull of ‘unfocused’
partners, vowing to shed up to 2,000 VARs in a channel clean up

Dan Hitchen, marketing and partner manager at VAR Basilica, welcomed
Hurd’s comments.  “This gives partners like us the opportunity to
add value, whereas partners that do not will no longer work with them.
It will definitely focus more partners and make them sit up and invest.”

However, one VAR who asked to remain anonymous was unimpressed. 
“HP has been struggling to be credible with resellers for some time.
There has been so much direct action with accounts that many partners
cannot afford to have their business completely aligned with HP
anymore.”

Paul Musgrove, managing director of PS Office Supplies, added: “This
will alienate some partners. We would love HP to be that committed to
the channel – it would be fantastic, but I am not 100 per cent
confident that they will follow it through. I think a lot of partners
will feel the same way and will take what HP has said with a pinch of
salt until they see some results.”

[Author]

September 14, 2005 at 11:38 AM