Frustration For Compaq VARs

Wald's company, Riata Technologies, is a regional solution provider founded in 1993 that provides technology consulting and hardware-procurement services. Despite its declared vendor-neutral stance, Riata had clearly emphasized Compaq. Lately, though, frustrations with Compaq have led him to push HP because it's proven itself to be more channel-friendly.

What happened to Compaq? That's what Wald wants to know. He believes it has lost momentum because VARs have trouble believing in Compaq. Partners say trust has been lost in large and small ways. Selling more products directly has eroded it, but small slights, too, have played a part. Steps to reduce MDF rebates to VARs by 10 to 25 basis points last year damaged credibility, as did the decision to reduce warranty reimbursements paid to partners. Although Compaq tried to explain, partners still felt slighted when the company redefined some terms to justify its actions.

Channel-watchers say Compaq could still mend fences, but it will take someone with passion and expertise. Ironically, Compaq may get that kind of guy if its pending merger with HP goes through. Kevin Gilroy, HP's vice president and general manager of North American channels, has distinguished himself as an effective channel advocate and would be the pick of many partners to run a combined HP-Compaq partner program.