GTSI CEO Speaks Out On PartnerOne

GTSI Hewlett-Packard

In a conference call with Wall Street analysts to discuss GTSI's third-quarter financial results, Young said that while the federal solution provider continues to partner with HP "in an aggressive way," some channel conflict has arisen.

"They have inherited a mindset through Digital Equipment Corporation and Compaq that it is good to go direct," Young said.

Compaq acquired DEC in 1998, while HP's purchase of Compaq was finalized earlier this year.

HP is GTSI's largest supplier, Young said. He added that in some cases the companies work together "very cooperatively." But he pointed to two federal agencies where GTSI and HP are now competing on open bids--the U.S. Postal Service and the Department of Veterans Affairs.

"Everybody is watching HP to see what they are going to do," Young said. "I think if HP continues to show a disinclination to use the channel, the channel will find alternatives to replace HP."

GTSI, based here, reported sales of $276.8 million for its third quarter ended Sept. 20, with IT products and services sales up 36 percent from the year ago quarter.