Customer Confusion Over HP-Compaq Merger Could Benefit Solution Providers

Hewlett-Packard Compaq Computer

"If it is a long integration, solution providers in the white-box market will benefit," said Lorne Wilson, who focuses on pushing hard drives to system builders in his role as vice president of channel sales and marketing at Fujitsu. "Customers say consistency is necessary. Without consistency, there are questions. When there are questions, there is opportunity. That opportunity could go to white-box builders."

White-box builders have said some end users have switched from an HP or Compaq solution to an unbranded solution because they are uncertain which product lines will survive and whether replacement parts and service will be available following the merger. In some cases, end users will turn to local and regional solution providers for those services, channel players said.

Tiffani Bova, vice president sales and channel programs at Affinity, a managed services hosting provider in El Segundo, Calif., said she saw a surge in business when she ran the West Coast professional services division of Inacom during the merger of Compaq and Digital Equipment. The HP-Compaq merger, if it happens, could provide the same opportunities, she said.

"It took Compaq/[Digital a long time to get services rolling, which was great for me at Inacom because I was winning a lot of service business away from [Digital," Bova said. "I don't think we'll see a quick integration following this merger, there are so many challenges from personnel and integration standpoints. Solution providers will find opportunities in the services space."

On the vendor front, printer solution manufacturer Lexmark won't reveal which opportunities it's urging solution providers to take advantage of, but the company is developing a new sales focus in the midmarket, said Chris Froman, vice president channel and alliance management at the company. And it's no secret that Lexmark eyes HP as its main rival.

"HP is a formidable competitor today, and they'll be a formidable competitor tomorrow with or without the merger," Froman said. "What we're hearing from our solution providers is that this is a great opportunity to continue to capitalize on the things we're doing right. We're going to continue to focus on and organize the different channel segments so we can optimize sales there."