VARs applaud changes to HP software rebates
New programme rewards partners for the level of investment they make in the IT giant
Hewlett-Packard (HP) VARs will be able to increase the amount of margin they receive, if they hit key objectives and criteria under the vendor’s new software compensation programme.
HP’s software division has unveiled a scorecard system that it has claimed will help resellers to differentiate. It will see resellers rewarded according to the level of investment they have made in the vendor.
Under the new programme, partners will receive quarterly rebates based on performance against a number of key objectives. In addition, partners will need to tick a number of scorecard boxes to determine the size of rebate they receive.
Lee Welch, partner business manager at HP Software, UK and Ireland, said: “HP’s software is quite complex so we need partners to have the right skills, knowledge and know-how.”
Welch said the scorecard covers areas such as technical competence and sales professionals.
“The programme will also allow partners to have predictable renumeration and return on investment. They will have a clear vision of where they are going with HP,” he said.
Darren Hill, sales manager at HP partner Fox IT, said: “Finally, HP has recognised that it should reward partners that want to invest more in their personal OpenView business. It will give those partners a competitive edge in the marketplace.”
However, Hill claimed HP’s software channel still has some issues to resolve. “I would like to see HP do more to resolve channel conflict, but it is definitely moving in the right direction,” he said.
Paul Cash, managing director at Partners In IT, said: “This is very positive for the organisations that are willing to focus and invest in HP, which is very much a part of our business plan. We concentrate almost exclusively on HP. Having made that investment over the past few years, we are keen to continue.”
Cash added that he would like to see HP remain “strict” on its enforcement of the compensation structure.