Distributor Bell Microproducts is winding down its PC business with Hewlett-Packard (HP) and shifting its focus more to enterprise infrastructure and solutions.
Bell, which last year announced it would be taking action to reduce its expense base in Europe (CRN, 17 Oct-ober) told CRN it would still be working closely with HP for other products.
Graeme Watt, president of Bell Microproducts Europe, told CRN: “In a way, this decision is a natural extension of a decision HP made some time ago. Bell has not been a fully fledged PC partner to HP in the UK for some time. Our core business is offering infrastructure to the marketplace and we compliment that with our security division, enterprise software division and partner services division. How-ever, HP is still a key part of our business going forward,” he said.
Watt added that since the firm was stripped of its Logistics Service Provider (LSP) status from HP it has been sourcing PC products through sub distribution, which was “not a sustainable model”.
“Europe has not been producing the returns that we want or require and it is our aim to get returns back to where they should be,” he said.
Richard Logan, distribution manager HP UK and Ireland, said: “This change follows a strategy review with Bell Microproducts. The decision falls in line with HP’s channel strategy of ‘right-sizing’ distribution.
“Bell will continue to be a key partner for HP in the business critical systems, storage and industry standard services businesses,” he said.
Dan Hitchen, partner manager at VAR Basilica, said: “We have been involved in discussions with Bell and the reasoning is pretty clear in terms of a pre-emptive strike. HP has made the changes in line with the rest of its programme and it seems it is mirroring what it is doing with resellers with its distribution partners.
“We are all struggling to add value around PCs and it is hitting distribution harder than resellers,” he said.
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