Paul Reid, director of specialty channel sales for HP’s printing and personal systems group, said the company has already kicked off its 2014 campaign and for next year it’s all about recovery and expansion.
With that the technology giant outlined five top channel priorities for next year. They are:
- Make it simpler and more profitable to sell the HP portfolio;
- Grow HP market share with channel partners;
- Align on key verticals markets to build a competitive partner advantage;
- SMB channel working incrementally to move SMB business through the channel; and
- Drive growth collaboratively between partners and partner business managers (PBM) through to the end users.
Reid added that HP’s has a philosophy called “1 + 1 + 1 = 3” for channel partner to adopt and attach HP products with services.
“My philosophy is there is a whole lot of money in this room being wasted if you are bored,” he told a crowd of about 400 solution providers attending the Synnex conference.
But the key for HP with the channel is to continually improve the way they do business with the channel. Reid said that HP is not just trying to be easier to do business with but also the company needs to be more profitable and do better engagement.
One area the company has improved is with its PartnerOne channel program. Reid said that the new changes made in 2013 pay the channel from dollar one. “No more jumping through hoops,” he said.
Another change is that HP will increase rewards for those solution providers who are growing HP business.
But the biggest change, Reid said, was that today solution providers only need to deal with one HP sales person.
“You guys thought we were so big. We’d get 10 people showing up to do business with you. But now there is only one person assigned to an account. We still have those 10 people. But they are working in the background to help you. So now there is only one butt to kick,” Reid said.
Other improvements made in 2013 was the IQuote system, which provides channel quotes in less than one minute, according to Reid. HP also extended MDF programs to six months so that those who are nearing the end of their MDF period will now get a six month extension.
“We realize that there is still more work to do. We are making strides to change,” Reid said.
Another area of focus for HP in 2014 is that their technology portfolio will centre on four market elements: mobility, cloud, social and big data.
Reid added that HP carries the entire technology stack, including paper.
HP will also extend Blue Carpet financing for 2014. More details will be coming in the New Year on that program.
Another objective will be services under the ServicesOne program. Reid said that partners who proactively engage with HP care services sell up to 31 per cent additional margin. Those that sell the hardware with services get 46 per cent margin, while those who use the new automation tool reduce their sales costs by 50 per cent.
“Our direct sales has gone down each year since Meg Whitman came on-board as CEO. We now have 70 per cent of our business goring through the channel,” Reid said.