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HP channels its energy towards success

Johannesburg, 28 Aug 2002

"The new HP must demonstrate a commitment to a dynamic channel partner programme, work towards a long-term relationship of trust and transparency and foster a culture of working together," says Gary De Menezes, HP SA`s country commercial channel and CRM manager.

"The new HP is now almost four months old and during this time we have been hard at work to consolidate channel activities across the merged Compaq and HP operations. By November we will have a centralised accounting system in place and will be completely ready to operate as a single company with a single strategy which spans the organisation."

HP commissioned a fact-finding mission aimed at soliciting input from first and second tier partners into the new channel strategy. The research will lay the foundation to ensure that HP is in touch with the market, and takes the best from both companies to develop a cohesive channel policy.

De Menezes says that HP SA and Compaq Computer Africa will remain separate legal entities until end October, which represents the end of the last quarter of HP`s financial year.

For that reason, HP SA will continue to follow the old Compaq and HP channel strategies with all the traditional values, benefits, rebates and purchasing channels remaining in place until the end of the quarter.

In addition, HP SA has moved ahead with the consolidation of the Compaq and HP accreditation programmes. The new HP SA has adopted Compaq`s Certified Professional Programme (APS, API, ASE and Master ASE) into its list of certifications.

It has also completed accelerated cross training for channel partners on the portable, desktop and Proliant ranges. This ensures that partners who previously focused only on HP or Compaq product ranges will have the skills to sell and support the product lines the new HP has adopted in each market niche.

"The businesses of partners that built their business predominantly on HP or Compaq will not be put at risk as we phase out certain product lines. We are ensuring business continuity and although we plan to compete aggressively for market share currently held by the direct and white-box vendors, we will not put our partners at risk," says De Menezes.

"We have shown a great deal of growth in the past few months, mostly at the expense of our competitors, and recognise that our channel partners have played a valuable role in our success in a tight market," add De Menezes. "We see little reason to cut back on our channel relationships since we are already making significant in-roads against our competitors in SA "

De Menezes points out that the latest research from IDC reports that the new HP SA showed dramatic growth in the second calendar quarter, which also represents the first three months following the merger of HP and Compaq.

Says De Menezes: "During the period under review, HP SA showed strong gains in market share while competitors reflected negative growth. Our server business grew by 13.1%, giving HP SA a 42% share of the market. In the mobile segment, we have grown by 27.4% and hold a dominant 27.8% share of the market."

"Because we are a channel-focused organisation, George du Plessis, enterprise channel manager, Bronwyn Maasdorp, channel marketing manager, and I are dedicated to the success of our channel partners which is key to the success of our business."

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HP

HP is a leading global provider of technology products, solutions and services to consumers and businesses. The company`s offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. Information about HP and its products can be found at http://www.hp.com

Editorial contacts

Bhavni Ramchurran
eCommunications
(011) 781 0097
bhavni@ecomms.co.za
Kerry Turner
Hewlett-Packard SA
(011) 775 5485
kerry.turner@hp.com