HP Plans Compensation Changes To Drive SMB Partner Engagements

The compensation changes, which would affect HP direct-sales call center reps, will go into effect soon, said Thompson, vice president and general manager of Americas Solution Provider Partners for HP.

"This is going to make that call center a lot more partner-friendly in terms of driving business going forward," he said. In addition, Thompson said HP will soon unveil improvements to the HP PartnerOne channel program.

Thompson discussed the changes in an address before several hundred solution providers at Ingram Micro's VentureTech Spring invitational conference in Atlanta. The speech was his first ever before the VentureTech group, which has shifted a significant amount of business to rival IBM in the last three years.

"We want to make sure that we have a more consistent engagement opportunity here with you as partners. We know that is critical," Thompson said. The SMB engagement changes will also include new conflict-escalation processes, he added.

Thompson also issued a strong attack on Lenovo, which is finalizing its acquisition of IBM's PC and ThinkPad notebook business. Touting an HP upgrade incentive program to win over Lenovo customers, he brought out what he called an "IBM partner goody bag" that included a Pepto Bismol bottle for curing "instant Lenovo selloff" with relief for upset stomach, nausea and "market share loss."

HP research indicates that about half of Lenovo clients are willing to switch vendors in the wake of the acquisition, Thompson said. HP has a competitive displacement program that will provide incremental promotional dollars to help customers manage through the migration, he added. HP, too, has a portfolio tool that will provide an extra 3 percent incentive for selling across three HP product categories, as well as a 4 percent incremental rebate for new customer wins.

"HP sees an opportunity with the IBM selloff to Lenovo and is sending a message," said Larry Baum, chairman and CEO of The Computer Center, an Ithaca, N.Y.-based VentureTech member who plans to look at upping his HP business. "I think Lenovo is going to have a hard time in this market. HP senses an opportunity in the channel that they haven't had in the last several years."

Baum added that he's still waiting to see if HP's renewed channel commitment will be endorsed by new company CEO Mark Hurd. However, Thompson said Hurd is "very committed" to driving the PC business forward. Thompson said he met with Hurd within the first 72 hours of his taking the helm as CEO, with the discussion focusing on how to move the partner business forward.

"The first thing [Hurd] said to me was, 'I want to get out there. I want to meet the partners. I want to hear what the partners have to say. I want to collaborate with them, and they are an integral part of the business,' " Thompson told VentureTech members. "I think you'll all be pleased to hear that."

In an interview with CRN, Thompson said HP has completed its move to push more accounts to partners in the enterprise segment and that it's now pushing forward with the SMB initiative. "Our first priority was to take care of the enterprise space, and we have clearly moved that focus into the SMB space for customers and partners," he said. "And we're feeling pumped about it. Partners are seeing the growth."

HP, which had 27 executives at VentureTech, also is stepping up its effort to get more solution providers selling and delivering HP services. The Palo Alto, Calif.-based vendor aims to recruit services partners for areas such as wireless LAN installation and startup for SMBs, disaster recovery and desktop management.

Next month, HP plans to launch a new HP Smart Desktop management service, Thompson said. "This is a win for partners and HP," he said of the company's services push, which has included HP handing over $50 million in SMB services to channel partners. "We believe there is a huge opportunity. "

Gary Coates, vice president of managed services at C&S Data Services, a Winter Garden, Fla.-based solution provider, welcomed HP's services drive. "This is the first time we have heard about this," Coates said. "It's a positive move by HP. We are going to be signing up for this so we can get all the certifications and can deliver HP services."

In addition, HP announced an exclusive offer for VentureTech members. The vendor is offering partners that grow their HP sales by 25 percent year over year productivity packs that provide free training, demo discounts and marketing to generate new leads. The offer ranges from $500 to $3,000 in productivity pack options.