HP SA restates commitment to the channel

HP South Africa has no plans to emulate its parent company`s drive in the US to increase its direct sales to small and medium-sized businesses (SMBs). Instead, the local subsidiary will continue to target these customers through its South African business partner network.

That`s the word from Gary De Menezes, HP South Africa`s commercial channel and CRM manager, who says that the local subsidiary will not follow the new strategy in the US which sees HP aim to sell more products including notebooks, desktops, commodity servers, handhelds, services, and storage directly to SMB customers.

Says De Menezes: "The new HP is busy redefining itself after the merger of the old Hewlett-Packard and Compaq, and this process of redefinition includes the introduction of new high-level strategies. When it comes to implementation of those strategies, HP will execute in ways that best meet the needs of the regional markets in which it operates.

"In SA, that means going through the channel. We are currently enhancing our channel strategy, and are in the process of signing new agreements with our partners that will come into effect at the beginning of the new financial year on 1 November."

De Menezes says that 85% of HP South Africa`s business moves through its network of business partners. In the local market, particularly in the fast-growing public sector and SME markets, dealing direct is not a viable business model for IT vendors to follow, he adds.

"We will be increasing our branding and marketing as well as rolling out online ordering facilities, but the channel should not feel threatened by these moves since we see business partners as an integral part of these new strategies," says De Menezes.

De Menezes points out that factors such as SA`s remoteness from major manufacturing sites and stocking points and the government`s black economic empowerment guidelines create unique opportunities for local distributors and resellers.

"Indeed, HP South Africa depends heavily on the infrastructure of its partners, and regards resellers and distributors as an extension of its own business. HP South Africa - in line with customer demands - is moving towards building closer relationships in key accounts but still depends on the channel for fulfilment.

"We will continue to evolve and adapt our channel strategy to local market conditions, but our business partners will always form a central part of our go-to-market strategy," reiterates De Menezes.