The HP-CDW Deal Under The MicroscopeRobert DeMarzo calls news of HP's deal with CDW the "Channel's Summer Blockbuster: "HP [will] co-fund 110 new HP-only salespeople inside CDW who will wake up every day with one goal--to sell HP products to businesses that employ 500 or fewer workers. By the way, there will be no shortage of accounts to target because HP is going to supply 500,000 net new customer leads for CDW to chase." DeMarzo sees the glass as half-full for SMB solution providers, though. "There are going to be many vendors scrambling to find a way to compete against HP in the SMB market, and they just might be willing to invest more in your organization." But rank-and-file VARs are wary about the deal's implications: "'There are a lot of dealers like us that are doing our best to cover that area. If CDW wants to compete, then they should do it at their own expense. HP should not be subsidizing them to compete with their other dealers,' said Mark Singh, president of ValCom Computer Center, an HP solution provider in Midland, Texas." While Craig Zarley says the deal's big loser may be HP itself: "What HP is betting with the CDW deal is that it can sell more products to small businesses using one large telesales organization than it can by better supporting thousands of local solution providers. It's lost that bet before." Posted by Joe Caponi at 02:56 PM, August 11, 2008 This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers. Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service. Important Note: This comment area is NOT intended for commercial messages or solicitations of business. |
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