HP simplifies channel

Johannesburg, 06 Apr 2009

HP is refining its PartnerONE channel programme as of 1 May, giving its channel partners an improved cash-to-cash cycle and more predictable compensation to reduce the uncertainty presented by the current economic environment.

“In today's environment, our partners have neither time, nor energy nor money to spare. We need to help them make the very most of every business opportunity,” says Thibault Dousson, country manager of Solution Partners Organisation, HP SA.

Dousson adds: “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.”

As part of the changes, HP will enhance its product portfolio strategy to increase sales opportunities for partners. The IT giant will integrate its Imaging and Printing Group (IPG) hardware and supplies partners under a single accreditation, to boost flexibility and open new sales opportunities. HP hopes its partners will benefit from a single point of contact for efficient, lower-cost account management.

HP is set to streamline its Personal Systems Group (PSG) and IPG product portfolios, with plans to reduce the number of IPG configurations by up to 30% over the next six months, and the number of PSG for the small office segment by up to 35%. These reductions will help to lower the amount of time resellers spend choosing configurations and distributors spend managing inventory.

HP is streamlining its Pay for Results compensation model for both reseller and distributor partners, by improving their cash-to-cash cycle and providing greater predictability in their earnings.

“Channel compensation has become increasingly complex and focused on back-end rebates over the last 15 to 20 years,” says Alastair Edwards, senior analyst at Canalys. “We believe that channel partners will welcome the simplified model that HP is putting in place, enabling them to reduce administrative overhead and providing greater predictability in an uncertain economic environment.”