PROFILE
HP takes the “preferred” road
by alex Pullin
HP addresses its EMEa preferred partners with some important
announcements on just what role they will have in HP’s future. It’s all
alex.pullint@iteuropa.com
about upselling, mobility, people and expansion....
“However exciting the journey has been, a thrilling We need an ecosystem
ride is still ahead of us. The road ahead is here, to build capacity....our
today and now.” entire sales ecosystem is
That was the message from Antoine Barre, VP in the attachment.”
of Solutions Partners Organisations (SPO) at HP, as It is in the market of
he addressed 60 of HP’s EMEA preferred partners. mobility where Cador’s
At the San Francisco conference, 18 months after views will be met with
the last one, in Barcelona, it’s clear that HP was most surprise. “The cycle
keen to emphasise just what part its preferred is much faster. Some
partners will have in its future. customers change after
Barre announced that HP had $42bn of revenue two years just for design.
in EMEA, up 15% year-on-year. 75% of that was If you can change the
through the channel which grew “slightly faster” way you sell, you will
than direct business. HP has over 5,000 partners sell twice as much as on
within EMEA, with preferred partners growing three other desktops. People
times faster than the average of the non-preferred will spend $900 (€577) on average. If they attach strong channel organisation.”
partner, so that was encouraging. software, hardware accessories and services it is Bill DeLacy, Senior VP and General Manager
With its new changes, it is clear that HP is also around $900 (€577) average. So there is as for Imaging and Printing Group (IPG) at HP, told
focusing on specialisation. “Over 1,000 have at least much revenue on attachments. They will not spend the partners that with €497bn, it is “number one
one specialisation. There’s a 10% rotation every year one dollar more than they need to on a computer, for market share in every European country” on
for Preferred Partners on a yearly basis. Those that but will spend on attachments.” printing.
don’t perform don’t stay.” Regarding the future, HP is keen to focus on In 2006 there was 11% using digital printing,
The confidence seems well founded. Mark Hurd, the ‘people-orientated strategy’. “We want to while in 2010 they are expecting it to rise to 13%.
CEO and President at HP, quoted 2007 figures of attract and retain the best people in the industry. “This is a largely unexplored frontier and a big
over $104bn, an improvement of $79bn in 2004. In training we have received feedback that they opportunity. It is one of the better opportunities
“There is a $1.2tn (€0.77tn) market today, and we’re want to be pushed further and harder. We want to go where your competitors can’t.” With savings
after $600bn (€385.73bn) of that. We spend $4.2bn to implement partner-based quotes for sales of 20-30% of printing costs, an easier system to
(€2.69bn) in R&D to go and get $1.2tn (€0.77tn). We representatives, ensuring we have the same keep track of what is being printed and being
want to go after the entire market. We used to run targets.” healthier for the environment, DeLacy believes that
HP on 6,000 applications, now there are less than Sean Gallagher, Director of SPO, said 2009 digital printing will continue to grow.
3,000. We are on our way to getting it to 1,500. It would be focused on three things. “The Preferred
OUR aNaLySIS
will get simpler.” Partner Programme, HP specifications and key tools
On the other hand, some application areas will for powering the programme. By 2009/10/11 we This was obviously a vital conference for HP. It
be added. Eric Cador, SVP and General Manager of expect to see more differentiation.” is clear that its preferred partners will provide a
Personal Systems Group (PSG) of EMEA believes Eric Lallier, SPO Director of PSG CEE at HP big part of its future, and HP is keen to put a lot
that the future of the channel in the PSG market told IT Europa that as well as the technological of trust in them. That’s probably why this EMEa
will be more about additions: “There are new expansions, it was interested in expanding conference was held in the US with access to HP’s
emerging opportunities. There is mobile email, geographically. Eastern European countries top names. By encouraging feedback, it hopes
virtualisation, workstation solutions and “attach” such as Russia, Ukraine, Kazahstan, Poland and to get a better understanding among partners
products and online services.” Romania were those listed where HP was keen to of upselling, virtualisation and digital printing.
“Partners must make profit outside of the box. strengthen, in particular Russia. “With Russia, the Preferred partners will be focused on by HP so
They must upsell, or add software or services. size of the country means you need to have a that they, in turn, can be preferred by customers.
14 02 May 2008
It0807 - 14_hp conf.indd 12 2008-04-30 11:39
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