HP Partners Await Details On PartnerOne
But HP executives said the delays are justified and the program is all but complete.
Nevertheless, solution providers said that while the basic framework of PartnerOne is known, precise definitions and details are still missing. PartnerOne is set to go into effect Nov. 1.
HIGHLIGHTS OF HP'S PARTNERONE
>> New channel program set for Nov. 1.
>> Three membership levels: Business Partner, Gold and Platinum.
>> Partners have to sell $75 million worth of HP products annually or have 15 certified HP technicians to reach Platinum status.
>> Gold-level status requires five HP-certified technicians or $10 million annually in HP product revenue.
>> HP will target 850 named accounts on a direct basis.
>> HP promises that pricing will be equal.
"I don't think anyone understands it yet," said Dan Nickel, president of Nitech, Irvine, Calif. "HP needs to get all their organizations together. One hand doesn't know what the other is doing."
Don McDowell, vice president of server solutions at Forsythe Solutions, Skokie, Ill., added, "This thing is still in the oven."
Solution providers complained that they still do not know how to register new accounts with HP to get credit for winning new business.
HP, however, said the company's partner business managers will monitor and track the new account business so solution providers get the appropriate credit.
Under PartnerOne, solution providers are expected to receive rebates of up to 8 percent, depending on the product mix, for bringing new accounts to HP.
HP also has yet to tell all of its midrange distributors, including Pioneer and Bell Microproducts, whether they will be authorized to carry the entire HP product set.
Another bone of contention among solution providers is that market development funds now must be spent within a 90-day window of accrual.
Peter Blackmore, executive vice president of HP's Enterprise Systems Group (ESG), said the vendor needed to restructure and simplify its channel strat-
egy after the merger with Compaq.
"I didn't like the term 'Hard Deck'," Blackmore said, explaining that it was too rigid. "What [we have come up with is much more illustrative of the market. Large enterprise customers want and expect an absolute trusted partnership with HP, and they also want integrators and VARs to play a key role. We've come up with a set of programs that are easier for the partners to understand."
Jim Milton, senior vice president and managing director of the Americas for HP's ESG, added, "If we just wanted to make it an ESG program, we could have done it in a lot less time. We wanted to do validation of our thinking throughout the process."