HP's Fiorina: Know The Value You Add

Hewlett-Packard's success depends on closer collaboration with channel partners, but vendors and solution providers must understand the value each adds to the supply chain, said HP Chairman and CEO Carly Fiorina.

Going forward, trusted partnerships between HP and solution providers will serve as a competitive edge as the company wraps up its integration of Compaq Computer and executes its post-merger strategy, Fiorina said last week in a keynote speech at the Global Technology Distribution Council summit here. The Compaq brand will remain for at least the next six months because it still accounts for strong retail sales, she added.

"Our success is measured on what we can achieve together with our partners," Fiorina said. "Two-thirds of our $75 billion business comes as a direct result of our collaboration with our partners and our channel."

>> 'Two-thirds of our $75 billion business comes as a direct result of our collaboration with our partners and our channel.' --HP's Carly Fiorina

Fiorina focused on the theme of adaptation. Unlike during the dot-com boom, customers now demand high return on investment from effective, low-cost solutions delivered by fewer partners, she said.

"We think companies with scope and scale can truly take on business and social challenges and lead the industry. You, our partners, are fundamental to that strategy," Fiorina told summit attendees.

Solution providers will be vital in helping HP deliver its technology to small and midsize businesses, she said.

After hearing Fiorina, Dave Browning, executive vice president of Advanced Systems Group, a Tustin, Calif., solution provider and IBM partner, said he'll consider adding some HP products to his line card.

"I appreciate hearing her say that the value of serving the SMB has as much to do with the face-to-face relationship that a solution provider maintains with the customer as it does with the technology that's delivered," Browning said.

Distributors also said they appreciate that HP has delivered a consistent channel message since its merger with Compaq. "They've been meeting with us, asking questions and trying to get it right," said Mike Long, president of Arrow Electronics' North American Computer Products group.

Tech Data Chairman and CEO Steve Raymund said he often worries about HP's increased direct-sales efforts, but he agrees that Fiorina and other HP executives,including Kevin Gilroy, vice president and general manager of commercial channels for the Americas,have reached out to partners. "I can hear in her words echoes of what Kevin and I have talked about," Raymund said. "From what she says, she has a deep understanding of the channel."