The economic crisis has pushed HP to realign its channel business model, it says. The company hopes to enhance its channel partners' competitiveness by reducing costs and increasing efficiencies.
“HP believes the current crisis provides many business opportunities and we plan to work hand-in-hand with our partners to take advantage of them. We expect market share gains within the channel from these changes against less nimble or financially sound competitors,” says HP SA solution partners organisation country manager Thibault Dousson.
An HP statement says the planned changes will benefit its partners by offering an improved cash predictable compensation to reduce uncertainty presented by the economic environment.
“We are moving to a more streamlined and simplified business model that we believe will be more predictable for our partners, allow them to grow their business with HP and turn their cash faster,” says Dousson.
Competitive pricing
The statement adds the crux of the changes will involve restructuring its channel business model and creating easier business processes, as well as more competitive pricing and compensation.
HP will also streamline its Pay for Results compensation model for both reseller and distributor partners. This can help its partners get through the economic crisis by improving their cash-to-cash cycle and providing greater predictability in their earnings, it says.
Other changes include consolidating its imaging and printing group hardware and supplies partners under a single accreditation and partner programme. It's also looking at introducing a new product portfolio for SMEs and the small office segment.
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