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HP Software Boss Eyes Big Partner Sales Growth

By Steven Burke
February 21, 2013    9:42 AM ET

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HP Executive Vice President of Software George Kadifa Wednesday promised to dramatically increase the percentage of software business going through solution providers, with the biggest gains coming in HP's big data and security software offerings.

"This is a great opportunity for us and the partner community," said Kadifa in an HP Global Partner Conference keynote address before 2,000 of the company's partners, only about 200 of whom currently sell HP software. "We would like to see HP software as being the third arrow [along with Printing Personal Systems and Enterprise Group product offerings] in your HP quiver."

[Related: Whitman's Partner Profitability Pledge Has HP Partners Literally Cheering]

With big data mainstay product Vertica now part of HP's PartnerOne channel program and the company on track to phase in its Autonomy software suite as part of PartnerOne, Kadifa said his goal is to "immediately" move from 26 percent of HP's big data software sales going through the channel to 50 percent.

In the security market where HP has a portfolio that includes Tipping Point, ArcSight and Fortify, Kadifa said his goal is to move from 35 percent of sales going through the channel to 50 percent and eventually to 70 percent.

Finally, in IT management software, Kadifa said his goal is to move from 60 percent of the business going through partners to 70 percent.

"What you will see going forward is a commitment to partner growth and profitability," said Kadifa. "This is a no-compromise [commitment]. These are numbers we are measuring and we are going to be very, very diligent in those growth targets."

Kadifa said the fast-growing big data, security and IT management software markets that HP is participating in represent a $45 billion market opportunity in software license and support revenue and account for anywhere from $5 to as much as $10 in additional services revenue for every dollar of software sold. Those services dollars are a critical ingredient for partner profitability.

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