Partners braced for more HP programme changes
Vendor launches new channel scheme and makes alterations to rebate structure
Hewlett-Packard is terminating its Business Partner programme, in a move that will see some VARs downgraded and left out in the cold.
The vendor also admitted last week that it is changing its rebate structure for distributors, just weeks after new contracts were signed.
In a document leaked to CRN, HP said from the end of October, the Business Partner Programme will be replaced by two new programmes: the Preferred Partner Programme (PPP) and the HP Registered Partner Programme (RPP).
Resellers that fulfil the criteria for the higher-level PPP will get access to marketing funds, “privileged” lead generation and special pricing. The criteria include customer service capabilities and the reseller’s level of engagement with HP.
However, resellers that fail to meet these criteria will be in the RPP. The vendor admitted that it “expects there will be fewer partners in the Preferred Programme than in the Business Partner Programme. HP will be firm with those partners that do not meet the criteria”.
Sue Richards, managing director of reseller EBM, said: “We have been asking for something like this for a long time. The Preferred status will give customers reassurance that they are dealing with a company that has been trained by HP.”
Paul Barlow, managing director of Equanet, added: “At the moment, there is not much difference in pricing for firms that invest heavily in HP, and those that invest nothing. It means we will get the reward for our investment.”
Under the new programmes, Channel Development Partners (CDPs) will manage Registered and non-registered partners and HP will manage Preferred Partners.
However, CDPs also face other challenges as the vendor changes its rebate structure again, having made changes to the structure only last month (CRN, 25 April). “HP’s compensation package for next year is currently under review and will be communicated in the fourth quarter this year,” the company said.
Steve Lockie, managing director of Computer 2000, said: “There will be more emphasis on funding to resellers and true CDPs that create HP demand. We are generally supportive of the move. There may be some teething problems, but the net result will be going in the right direction.”
Graeme Watt, managing director of Bell Microproducts, told CRN: “The model will reward partners for adding new customers and bringing in incremental business.
“There have been a number of frustrations recently about the number of changes at HP and the execution of those changes, but this move seems to make sense for HP.”