Ziff Davis Internet
News & Resources for the IT Reseller
NewsReviewsTech AnalysisCommentarySecurityLinux/Unix
My Account |  

HP’s Decision to Clearly Define Direct Accounts Wins Points with Partners
By John Hazard

For VAR HMP Networks, investing on a customer relationship has been tricky because company executives always feared Hewlett-Packard Co. swoop in and scavenge the account.

“That fear was always there,” said Romi Randhawa, president of HPM Networks, of Fremont, Calif. That is because of the vendor’s practice of selling directly to customers, sometimes steering them away from channel partners. “Do we want to apply these resources if it’s just building a customer for the vendor?”


But the fear is gone, said Randhawa and other HP PartnerOne partners, since HP announced this week that it will no longer pursue new customers directly. Instead, the company will sell only to customers on a list of “named accounts,” and any customers that come to them, as part of a new go-to-market strategy that leaves the bulk of customers and all new sales opportunities in the hands of partners, said Tom LaRocca, HP’s vice president of partner development and programs.

Partners contacted declared the defined rules of engagement a monumental change of course for a channel program notorious for competing with clients.

“This wasn’t a tactical decision; this was a strategic maneuver,” said Laurie Benson, CEO of Inacom Information Systems, a Madison, Wis., system integrator and HP reseller. “They’ve been making a lot of announcements about channel programs this year, but most of those were programmatic. This cuts to the core of what the program does.”

Pointer Click here to read about HP’s redefined customer engagement rules.

Benson called the changes a foundation on which HP will likely build an impressive channel program to target sales to SMBs (small and midsize businesses).

The new go-to-market strategy, Benson said, should allow partners to leverage resources they never otherwise could have used without fear of losing a client.

“Since nobody is worrying about who is getting the sale now, you can leverage resources jointly, adding a lot of value to the offering,” she said. “Before that you might have thought twice about losing that sale to HP.”

With less obstacles for resellers, the new strategy makes business with HP easier for a new class of partner, said Pete Anderson, president of Bayshore Technologies Inc., a Tampa, Fla., system integrator and primarily a Microsoft Corp. reseller.

“For a lot of customers we are the trusted adviser. We are in their business for software integration, and that drives hardware sales,” Anderson said. “We’ve been recommending HP products for years, but we can do so with more confidence that we have a stake in that now.

“If you want to break into the [SMB] market, that’s where you’re going to find it.”



Free Hands-On Training Lab
Find out how key features of SBS 2003 can help you open up a new line of revenue. Register now >>

SBS 2003 Sales Reference Card
This handy reference card contains features at a glance, sales objection handling, pricing guidelines & more. Get it now >>

Microsoft Empower for ISVs rewards your big idea with big benefits and support.
Access key development tools at a low cost to help you develop that idea into an innovative application. Learn more >>

Autotask makes your IT business run. Better!
  • Manage your entire business from a single integrated system accessed over the web
  • Track and control service tickets, and efficiently dispatch field service techs
  • Monitor and analyze project profitability by project, customer and type
  • Bill by fixed price, time & materials, block hours or retainers
  • Set up workflow rules and automated notifications
  • Nothing to install. Easy to use. Affordable.
Click here ONLY if you want a personalized demo via the web
(North America only, please)

Attention Microsoft Solution Providers!

Want to gain a competitive edge? Try Microsoft Watch – FREE!

Each week you receive:
  • Microsoft News and Insider Information
  • Expert Analysis
  • Code Names of Upcoming MS Products
  • Year-Ahead Calendar, updated monthly

    Click Here to sign up now for your FREE 14 Day Trial to Microsoft Watch.
  • Add up to $1,200 of value with the new BONUS PACKS.
  • High Performance Storage That Blows Away Competitors.
  • Adaptec Adaptec SATA II RAID Outperforms LSI, Promise, 3Ware
  • Create, manage, and archive all content with EMC
  • Go Pro.Introducing Intel® vPro™ technology.
  • Free on-line courses at Data Center University
  • The Power to Build Great Devices – Windows Embedded
  • Windows gets top EAL 4+ security rating from SAIC.
  • Get the Facts on Linux and Windows Server.
  • Get a FREE Forrester white paper courtesy of Oracle.
  • Free Whitepaper: The future of Identity Management.

    •Catalog Publishing
    •Dealer Management
    •Order Configuration
    •Price Management
    •Sales Management

    View All >

    Search the jobs you want & get the info you need – post your resume here today!

    Powered by Dice
    White Boxes
    MS vs. IBM
    Linux in the Channel
    Stay in the Zone
    Put The Channel Insider on your desktop.
    Subscribe to The Channel Insider: Channel News, Reviews, Resources and more.

    Make your selections below:

    Contract Watch

    The Channel Insider Update

    Preferred e-mail format:

    Enter your e-mail:

    view all newsletters >>
    Channel Insider Quick Links
    Ziff Davis Footer Logo