HP Exec Says Global Channel Services Strategy Trumps Dell

Solution providers in large metropolitan areas have reported in recent weeks that Dell is exploring new service partnership agreements with them. One solution provider, who asked not to be identified, said Dell offered to pay him a percentage of Dell's product sales as a fee for providing consulting and other services to existing Dell customers.

But Jack Novia, HP's senior vice president Americas for HP Services called Dell's move an obvious plan to cover customer needs, but on a regional basis. "It's not the most efficient way [to provide services with partners]," he said during an interview with CRN at the HP World conference in Atlanta. "It's more reactionary. ... Dell won't be able to scale that strategy globally."

He pointed out that HP might include 15 different solution providers on a global deal.

"Dell's strategy might work in new York, but what about in Philadelphia or Bucharest?" he said.

Dell didn't return phone calls seeking comment.

Novia noted that in the past year--as HP Services has intertwined its services strategy with the product strategy and embraced the PartnerOne channel strategy--HP Service's sales of its packaged services through the channel has increased almost 40 percent year over year. "Our goal is to double that," he said.

He added that HP has increased its subcontracting relationships with its enterprise partners who work with HP Services on a prime and subcontractor basis. He said HP has relationships with about 50 enterprise partners in the U.S.

"The single largest growth opportunity for our channel partners is in the SMB space, so one of the challenges and opportunities we face this year is to dramatically grow our SMB space with our channel partners," he said. "That's one of our key initiatives this year."

He said he sees opportunities for security consulting, Xchange rollouts, mid market Peoplesoft application environments and SAP environments where HP can work with channel partners to offer prepackaged solution that they can sell and, in some cases, deliver to SMB customers.