HP celebrated the 25-year anniversary of its channel partnership in Europe, Middle East and Africa (EMEA) with the announcement of a $8 million dollar marketing boost in 2005 and a series of new initiatives designed to expand HP partner business in the region.
HP’s channel partners currently generate some $16 billion of HP’s business in the EMEA region, representing around 75 percent of HP’s total EMEA revenue. HP has incorporated feedback from its ongoing dialogue with partners into the development of an enhanced partner strategy focusing on four key areas: predictability, partnering, profitability and portfolio.
HP has taken major steps for enabling end-to-end management of the channel business for increased predictability and transparency to channel partners so they can plan and grow in the customer segments where they add the most value.
Effective February 1, 2005, HP is launching two new measures:
A new contractual framework for Sales and Service Partners (SSPs) which will give qualified resellers access to certain HP channel programmes, including special pricing for major deals and, over time, to the Business Partner Programme.
Revisions to the Special Pricing Terms & Conditions (T&Cs) to improve business controls, helping increase long-term profitability for both HP and its partners.
Partnering for a winning combination
HP announced the creation of two new partner advisory boards for corporate and enterprise-focused partners - one for SSPs and another for Channel Development Partners - comparable to that already in place for its SMB partners. Expected to be effective by March 2005, each board will consist of 10 partners who will meet regularly to review the effectiveness of HP’s strategy and initiatives. HP will incorporate their feedback into further refinements to the programme, adding more value for channel partners and enhancing the total partner experience for EMEA resellers.
HP will also maintain its bi-annual partner surveys to obtain comprehensive feedback from partners across the region. The most recent survey, conducted in late 2004, shows that over 70 percent of the 3,500 respondents were loyal or favourable to HP and 84 percent indicated they would recommend HP to a customer. Prospects for enhanced revenues over the next six months were indicated by 51 percent and a further 40 percent of respondents said they expected revenues to be stable.
Furthermore, as a special reward for the 25th anniversary, HP will highlight the 25 fastest-growing partners each month in 2005. Monthly winners will be notified via letter from HP’s Solution Partners Organization vice president Jos Brenkel. Each quarter, the top performing partner will be awarded an additional $10,000 in business development funds to be invested in either training/certification or co-marketing.
Proof of the success of the HP partnering initiatives already in place is evident from the results of an EMEA high-technology channel survey conducted by industry analyst group Canalys in December 2004. HP was voted number one vendor for channel partner support in four of five product segments in the survey. HP also came in top when channel partners were asked which notebook vendor they planned to support more in 2005, with double the mentions of the second placed vendor.1
To drive more business to its enterprise value partners, HP is launching an enhanced Pay Per Use (PPU) programme for HP server and storage solutions, offering real-time access to reserve capacity. Payments are based on the actual metred usage, with lower usage resulting in lower payments. The programme is now available on both UNIX and Windows operating systems and customers can even use PPU on both operating systems running simultaneously on the same server.
Over the past 25 years, HP’s EMEA channel has grown rapidly to encompass some 120,000 partners and more than one million sales people, including resellers, systems integrators, independent software vendors and service providers. These partners have access to an ever expanding portfolio of HP solutions and products, enabling them to achieve greater breadth and coverage for consumers, small-and-medium-sized businesses and enterprise customers:
HP services are now included in HP’s channel portfolio, letting partners more easily sell complete HP product and service solutions to customers.
HP’s Certified Professional Programme provides a single, consolidated certification across HP’s portfolio for sales and pre-sales professionals. Recent enhancements include more flexible training and testing options, and an increased solutions focus, as well as a ‘Members Benefit’ framework introducing a new advantage each month over the course of the next year.
HP has also launched a series of initiatives to better help partners sell service solutions to customers:
Printers are now included in the HP Care Pack XtraClub - an incentive programme designed to reward HP authorised partners. Participants earn Packpoints, which are redeemable against a selection of merchandise offered in the reward catalogue.
“Ready to Go” promotions on HP Care Pack Services across the full HP product portfolio are implemented in more then 20 countries in EMEA. “Ready to Go” offers partners attractive cash back and give the opportunity to raise profit and revenue by rewarding partners for the sale of promoted HP Care Pack Services.
“OneShot” online training helps partners achieve the full benefit of newly developed HP Care Pack Services. HP partners can easily test their knowledge through quizzes with the support of necessary sales tools and information.
More details for HP partners on training and promotions are available at
http://www.newcarepackoffer.com/.
“HP Care Pack World” introduces the HP Care Pack Services portfolio benefit to SMB end users through an exciting and virtual online world trip to help HP partners profit from their raised awareness. After just four weeks, there have already been more than 6,000 end-users connections. Online registration is available in 13 major EMEA countries at
http://www.hpcarepackworld.com/.
