HP Synstar buy 'will help VARs win deals'
Vendor attempts to allay channel fears
Hewlett-Packard (HP) has attempted to allay channel fears by claiming its acquisition of pan-European services firm Synstar may actually boost VAR coffers.
Last week the vendor finalised its purchase of the firm, which supports IBM and Sun as well as HP, for £163m.
Paul Mears, director of technology services UK and Ireland at HP, said: "This has propelled us into third position in the services market. Our target market is the enterprise sector, and we have made no bones about the fact that any VARs operating in that space will be competing with us.
"However, the more enlightened VARs [outside enterprise] will see this as an opportunity to resell HP's services capability as their own solution. They could become a shop window for what HP can do, which could help them to win bigger deals."
Mears said it is too early to say whether the Synstar name will be dropped or if any redundancies will result from the acquisition.
Eamonn Kennedy, research director at Ovum's outsourcing practice, said the acquisition consolidates three areas of HP's business: customer support, business continuity and managed services.
"HP's targets will always be large multi-nationals - contracts worth in excess of $500m. I wouldn't say this will see it going for deals of $10m or less.
"If I was a UK-based reseller I would certainly pay attention, but not read it as HP coming down to smaller deals."
But one VAR, who requested anonymity, said: "Why does HP need the channel now it has bought a multi-vendor service company? HP wants the business for itself. I think this is going to take business from the channel."