HP: No losers from PfR changes

But vendor yet to make call on whether mixed compensation model will remain in place for fiscal Q3

HP has claimed the re-introduction of linear rebates in Pay for Results(PfR) will provide a boost to value-driven partners that are finding it tough to close large deals.

For its fiscal second quarter starting this month, HP has changed PfR from a target-based to a mixed scheme combining target-based and linear rebates. This means partners will earn rebates from the first dollar they sell.

The changes only impact Gold partners selling HP Enterprise Storage, Server and Networking (ESSN) and Services and not its top-tier PC and printer partners.

Kevin Matthews, UK&I Enterprise Storage, Server and Networking channel manager (pictured), said HP has yet to decide whether to extend this beyond Q2 but claimed the shift had been welcomed by partners.

"We are still posting good results for ESSN and this approach is pre-emptive, to maintain that momentum. We felt introducing a level of predictability for selling HP products and services would mean that partners are better placed to do HP business."

Matthews said the overall "compensation envelope" remains the same as the previous quarter, while the quarterly targets have not changed either.

"There are no losers from this but I think it will favour those partners driving value business on large projects where the end user is taking longer to sign," Matthews added. "We will take a view on Q3 nearer the time."

Paul Early, channel manager HP TS UK, added: "Partners I have talked to have very much welcomed the flattened-out rebate and the fact they can also earn from the first dollar."

HP briefly moved to a linear system in the depths of the downturn before resuming a target-based model in late 2009 as the economy showed signs of picking up.