HP EMEA boss has a Cannes-do attitude to the channel
HP recently celebrated its 13th year as the official technology partner of the Cannes Film Festival. CRN caught up with its new EMEA chief Nick Lazaridis at the event to see how he is settling into the role
It was difficult to walk around Cannes during the famous film festival without seeing some reference to HP, from its enormous printed banner outside the Palais de Festivals (pictured) to the branding at the Majestic Barrière, the main hotel of the event.
HP was celebrating its 13th year as the festival's official technology partner and it was here that the vendor's new EMEA chief Nick Lazaridis (pictured below) spoke to CRN and reaffirmed six-month old HP Inc's commitment to the channel.
With a 20-year history in the industry, Lazaridis has certainly amassed a rich history in vendorland. He has worked at Acer, Dell, Lenovo and now HP - holding various roles in the APJ region - covering countries including India, China, Japan, Korea, Australia, New Zealand and Singapore.
He is now responsible for the whole EMEA region for the recently formed HP Inc after the company split into two separate businesses last November.
He explained that the region itself has been split into eight sub-regions: France, the UK and Ireland, Germany and Austria, Iberia, Italy, CEE, MEMA, and GWE (Nordics Benelux and Switzerland).
"My first challenge was meeting customers and our own teams;, I have a great team of people behind me," he said.
He explained that the firm's strategy is based on three pillars - PCs, printing, and professional graphics - backed up by its release last week of high-end 3D printers.
But the real emphasis is on innovation, he said. "HP went through a period in the past where we changed CEO frequently, but Meg Whitman came on board and we are back to our core DNA, which is innovation. When Bill and Dave (Hewlett and Packard) invented their first product in their old garage and sold it to Disney, innovation was key.
"We have a strong engine and a large number of patents (roughly 18,000), and that did go dormant when we kept changing CEOs. Three years ago, HP notebooks were very heavy and big when put up against ultra-thin notebooks and they did not fare well. However, we have now put a lot of money into this and have the world's thinnest laptop."
Sticking with the product theme, Lazaridis said HP has bet big on two-in-ones, but clamshell PCs are still a huge market for the vendor. Despite the global tablet market taking the biggest hit in terms of sales declines according to market watchers, HP has been cushioned because it has not mass-produced consumer tablets and has played on the periphery.
"We have also kept away from phones," he said. "There are hundreds of vendors making phones, but only two of them are really making money. Following some of our competitors into the phone game as a 'me too' meant we would lose. Instead we are investing in new technology such as 3D printing, which we could not have done unless we had a profitable business."
However, the channel is absolutely vital for HP's success strategy, Lazaridis stressed.
"In terms of the channel - we are omni-channel - historically it was channel only, then we added direct because certain customers said they wanted a direct relationship with HP and we do everything for them, very much like we do with some of the film industry customers we have here in Cannes.
"The channel is more than 80 per cent of our business. That equates to 80 per cent of a $52bn business. Many people have said to us that HP is the channel and without us, they would not exist. Although we have 50,000 employees, there are millions of people who work with us every day because of our extended partner network."
Lazaridis said HP's split into two companies last November was handled exactly right by [HP Inc] chief executive Dion Weisler.
"We actually managed to grow the business during the split - we carved off a couple of thousand people to focus on that and firewalled the [day-to-day] running of the business and our partners' business from what was going on," he said.
"However, when it got nearer to the time of the split, Dion made sure everybody was involved and it just came together. We came through it without dropping the ball and gained loyalty. Many partners have told us that they feel and see that we are supporting them."
"We exist to serve customers," Lazaridis said. "If we are owning market share, but not making money for partners or delivering to end customers, we are not winning. However, we have had a nice wave of support as the new HP and where we are going. Obviously partners are never shy to tell us if we are not in the right.
"We feel we are winning as well. It has been a turbulent time, but the last three years have been the turnaround," he added.
"Meg [Whitman] came in and realigned the strategy. Everybody is energised about who HP is now."
Although HP is not obsessed with competition, he said it was the first vendor to simplify its channel programme with Partner First.
"Now partners get paid very simply and it is a level playing field for those not selling the higher-value products," he said. "Funnily enough, our biggest competitor in the PC space did almost the same thing just after us - they relaunched their partner programme and basically copied us. Copying is a form of flattery, I suppose!
"We are not obsessed with the competition. We look at our competition, we have an advisory council and listen to our partners. Competition will always be there, but we aim to play the game, have a strategy and we will end up winning."
He said HP could not always control things like price, but the aim was to help partners sell the value of its product to customers and get the most value themselves in return.
"We are always thinking about what is the next evolution," he said. "How do we please everyone and ensure that partners keep being successful? They are our lifeblood."