HP Urges Partners To Move To Agent Model

Hewlett-Packard

In an interview with CRN at HP's meeting with security analysts here, Winkler said he would like to increase the amount of PCs moving through the agent model to 50 percent from the current level of about 10 percent.

Under the agent model, solution providers bypass distributors and order products directly from HP. The company insists the model is more cost-efficient than the traditional model.

Winkler said commissions on PC products through the agent program range from about 4 percent to about 10 percent to 12 percent, depending on the product.

Winkler conceded that HP has not aggressively communicated or promoted the benefits of the agent model.

Whether HP can reach its agent PC model sales goals will "depend on our ability to make the resellers and VARs feel comfortable and confident that we're legitimate in not going to take [business from them," he said.

"We are not going to go after those accounts," said Winker. He stressed that there are clear rules of engagement in the agent model that prevent HP from poaching or stealing the agent accounts that solution providers have cultivated. In addition, HP also has council partners to which they can escalate disputes to make sure "there are no rogue salesmen out there doing something that they shouldn't do," he said.

Winkler conceded that solution providers may have concerns about moving to an agent model because of fears HP will take those accounts direct once they have the account information. "Clearly, they have some reason to have some suspicion of us," he said. "In point of fact, we are as committed to these guys as we always were because they are 70 percent of the market."

Winkler said solution providers do not have many options on the PC front besides IBM, which has also adopted a hybrid model, and white-box PCs.