While the world waits for the $24 billion HP/Compaq acquisition to be finalised, amid in-fighting among the companies` boards and shareholders, business continues as normal for the local divisions.
International pundits predict that the European Commission will approve the acquisition today, without conditions. The decision comes after a two-month investigation during which the anti-trust commission had to determine if the merged entity would still face effective competition in all the markets in which it operates.
The model we have is purely indirect and will stay that way - you cannot be half pregnant.
<I>Gary De Menezes</I>, director for channel and CRM, Compaq
Meanwhile, on the home front, although both firms` local operations have had directives from their parent companies not to have any business dealings with one another, it appears that both parties` business partners are looking to the companies for some future channel strategy should the deal go through.
The companies operate via different market strategies, with Compaq taking an indirect model and HP opting for a mixed model. HP`s model was implemented over a year ago when the company went through its reinvention, while Compaq`s current channel partner programme was implemented in October.
Gary De Menezes, Compaq director for channel and CRM, says the company will adhere to its indirect model.
"We implemented the new programme last year, and it has both empowered and incentivised our partners. The model we have is purely indirect and will stay that way - you cannot be half pregnant. We came up with a programme we believe will enable our partners to compete in a tough market with shrinking margins," says De Menezes.
While HP and Compaq have different models for the local market, both Brick and De Menezes believe conditions are vastly different in the South African market and channel models have to reflect these anomalies.
"We are incredibly far away from our parent companies. We have to deal with challenging logistics, transport problems, stock availability and obviously the rand, dollar fluctuation," says De Menezes.
"Fortunately, very few instances of conflict have arisen as a result of the proposed joining of the companies. Emotions have settled and HP is driving hard at achieving the objectives set out for us this year. The general mood at HP in SA is positive and we are optimistic about the outcome, given that the proposed new company will be a much stronger force in the market," says Darryl Brick, HP channel manager.
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