HP's Plea for Help
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There is a saying: If it looks like desperation and it smells like desperation, then, more than likely, it is desperation. HP is having a tough time. Its enterprise business in the U.S. is being affected by the economic environment, and its SMB business is being affected by rivals jumping on the bandwagon and eating away at its revenues. Not only that, but as Dell seeks to align itself with most of the largest retailers across the world (for the very first time), it seems HP's market share here is also under threat. So, what is a company to do? First, it is good news that HP has admitted that it is under pressure and that it needs help. This alone means that it can start doing something about it. Second, it is great news for partners. HP has freely admitted that it can be slow to help partners register deals and to get fulfillment done; therefore, the time is ripe for partners to call their HP rep and ask for better special pricing, better bid terms and better marketing assistance to help drive the much-needed demand for HP in the SMB sector. Mark Hurd's plea to partners should be seen as a milestone in HP history -- the company has recognized how much it needs partners, and this can only be a good thing for its channel. Having recognized its difficulties, HP can now not only do something about them, but must also ensure that it doesn't forget all the things that made it great -- it has a fantastic brand name in the industry, including among SMEs, and it has great technology, a point that must be stressed by partners -- along with its ability to change, something we are all witnessing right now. |
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Comments (2)
I agree with Sara. If I was a committed VAR in the HP program, I would specifically ask HP exactly what the parameters of the program are. To simply state that we will basically do anything to work with you to gain customer focus and support, isn't really enough. You need to have a well defined joint strategy including goals, timelines and target markets, and you need to have a crisp go-to-market strategy to ensure all participants understand the rules of engagement including accountability attributes. Then and only then will you have a decent shot at success particularly when trust has traditionally been an historical problem.
To HP's credit, at least they recognize and admit they have a very poor partner friendly reputation, but that's easy to discern - just exaimine the numbers especially when most of the revenue has been generated outside of the U.S.
If I was a partner involved with the program, I would have HP clearly layout a joint revenue marketing plan complete with distinct areas of responsibilities, scope of account or customer ownership and escalation procedures and priorities.
In my opinion if HP can clearly articulate and execute the ground rules, not only will they have a much better chance of success, but other partners will be clamoring to do business with them.
Posted by Will Torre | February 27, 2008 2:05 PM
HP has more to worry about than channel partners. Being an IT professional for over 25 years, I had been a huge fan, using HP hardware over the past two and one half decades, even when they were the more expensive choice because they had a proven track record of reliable products. Their support was outstanding, and I recommended HP products to clients, family and friends.
No longer am I fan, in fact, I am quite a disgruntled customer. HP Total Care has been more "HP doesn't care". I have nearly five years of technical issues with an HP notebook which I diagnosed to be caused by an overheating issue. After returning the notebook for repairs three times, HP finally and reluctantly replaced it with an "upgrade" which included Windows XP MCE. After only a few weeks, the notebook failed (again) and after another return for repair, they replaced just about everything inside except the display.
I am currently in the midst of yet another long technical support issue with them because the notebook's Windows updating failed, and neither HP nor Microsoft has been able to resolve it.
I am currently shopping for a new notebook and I am sure it will not be a Hewlett-Packard one. I am also using Linux Desktop on my workstation, and I will install Linux on my notebook, unless I purchase one with Linux preinstalled.
The best way for any company to attract partners is first to have a product that customers demand. HP has not demonstrated in recent times that it can do so, at least with some of its consumer products. And its off-shore technical support has taken a great service and turned it into a joke.
HP are you reading this? You will have to gain back my respect before I will buy or recommend HP products again.
Fred Marsico
Chief Technology Officer
Quantum Mechanics R & D
Creating a new energy paradigm
Posted by Fred Marsico | April 23, 2008 2:46 PM