Partner concern at HP channel rejig
VARs speak out about vendor's plan to unify direct salesforces
VARs have expressed mounting concern in response to Hewlett Packard's plans to reorganise and consolidate its channel programmes later this year.
Under the changes, HP's entire direct salesforce will come under the umbrella of the Technology Solutions Group (TSG), in a new sales unit called the Customer Solution Group (CSG).
A new consolidated channel team will be led by current Personal Systems Group head Duane Zitzner, who will report to the new head of CSG, Peter Blackmore.
HP said further details of the channel reorganisation are being hammered out. "On the regional side, HP wants there to be as little disruption to its channel as possible," a representative said.
"The PartnerOne programme will not change and will not be affected by the changes."
TSG will form HP's largest division, accounting for $9bn in sales per quarter, raising concerns about its combined strengths.
More worryingly for partners, Zitzner said at an analyst meeting recently that while HP resellers will experience significant revenue growth, "[HP's] intent is to double the amount of direct [sales] we are doing by 2006."
Steve Wood, managing director of reseller Parity ICT, said: "It sounds like HP is taking its direct route to market more seriously, which will obviously be a worry for its major partners. But it'll be a struggle to assess the impact on SME-focused operators like us."
Tony Lock, principal analyst at Bloor Research, said he believed CSG will concentrate on core customers. "But HP has a very extended channel, and since the merger with Compaq it simply increased its breadth. It needed reorganising," he said.
HP would not clarify whether these changes will mean a more centralised channel strategy on a global or regional scale.
Paul Barlow, managing director of HP reseller Equanet, said increasing centralisation of channel management to the US would be a bad move.
"I don't think the move towards centralised global or pan-European management works," he said.
"Just as we talk to customers and try to treat them as individuals, every reseller in each European country has different needs. One size doesn't fit all."