HP Builds Channel For Vertical Solutions

The strategy involves moving away from product line sales of printers and software, for example, to vertically focused solution sales in which partner services are integrated with HP's.

For now, this effort is limited to the Network and Service Provider Business unit, which serves the telecommunications industry. The $6 billion business, post-merger with Compaq, is HP's largest industry unit.

Over time, the vertical solutions strategy is expected to extend to financial services and manufacturing, HP's second- and third-largest vertical targets, said Joy King, director of worldwide marketing and communications for the unit.

"With the traditional product line sales approach, customers felt like they were dealing with four or five different HPs," King said. "But customers would rather buy solutions delivered in a framework within their industry. Not just the solution,they want someone who knows the acronyms, the history and the problems in their industry."

HP garners 19.6 percent of IT spending in the telecom space, not including peripherals sales, she said.

King said channel partners,particularly solution providers with telecom expertise,will play a larger role in providing HP's vertical solutions.

"Now with our industry vertical focus, smaller companies have the ability to do business with HP and have their solutions integrated into HP solutions for the market," King added.

HP will provide vertically focused solution providers with resources such as preintegration with the partner's solution, marketing, benchmarking and financing.

UshaComm Technologies' billing and customer care software, for example, was integrated with HP-developed solutions for the telco space.

"We have a small direct staff and rely heavily upon the sales channels of partners. HP has a very large sales force," said David Guggenheim, executive vice president of global marketing at the Reston, Va.-based company. "HP is a vital link to our growth."

HP brought UshaComm into a request for proposal sent out by Manitoba Telecom Services for a new billing system. With HP acting as the primary contractor, the duo won the deal.

"Being able to spread the word about our services though HP to the telco sector is huge," Guggenheim said. "It's been a smooth relationship so far with [HP delivering on their promises to us as a partner."

HP also is seeking ASPs, MSPs, NSPs and equipment vendors serving the telco space. As of August, the combined Network and Service Provider Business unit had 500 partner relationships in place.

The services provided by this unit range from network and operations solutions to consumer services, enterprise services, and devices and access. Such services include signaling middleware, billing platforms, wireless solutions, network services management and service control points.

Another goal of the unit is to evolve networks from proprietary to open, common industry standards, King said.

"The real issue is about ensuring that things like signaling middleware and other tools in the network can help them evolve to next-generation systems," she said.