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 user 2005-09-14 at 11:39:00 am Views: 88
  • #12673

    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

    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.”