HP Deauthorizes Platinum Partner

An HP spokesman Wednesday confirmed that MSE, a solution provider with 2006 revenue in excess of $200 million, has been deauthorized effective Jan. 12. The spokesman would not comment on why MSE has been deauthorized.

But Houston-area solution providers and Houston and Dallas newspapers reported that a Dallas school administrator accepted many free trips on a luxury boat allegedly owned by MSE in 2005. That apparently was one of the charges that ultimately sparked an ongoing public-corruption investigation by the FBI and the U.S. Attorney's office.

In an e-mail comment on the matter, MSE President Frankie Wong said, "We are aware that HP has issued a notice of termination. We have always viewed HP as a valued business partner, and this appears to be totally out of character for them. We have spent over 13 years building this business in full support of HP and their product lines and are extremely disappointed in their decision."

Wong added that MSE provides "exceptional service" to all of its clients. "We maintain innocence of any wrongdoing that may have been published by the media," he said. "MSE has never participated in fraudulent practices with any school district or any other customer that we serve and feel strongly that HP's actions are unwarranted."

The HP spokesman said that other HP solution providers would move in to service the Dallas and Houston school contracts as well as other district contracts held by MSE.

Joe Vaught, COO of PCPC Direct, a Houston solution provider said that MSE's deauthorization by HP should give other solution providers new opportunities in K-12 accounts in Texas. He said that he heard last year that MSE might be in trouble with the Dallas school district and gained a toehold there by winning a portion of the contract in collaboration with IBM.

"We are now starting to cold-call on school districts in the Houston area [in hopes of winning more business formally held by MSE]," he said.

According to MSE's Web site, in addition to being an HP Platinum partner, the company is also a Cisco Gold Certified Partner and Microsoft Gold Certified Partner, among other authorizations.