HP's Hurd Has One Channel Story To Tell

By Robert C. DeMarzo, CRN
February 25, 2008 12:00 AM ET

We had a rare opportunity to spend time with HP Chairman and CEO Mark Hurd, who is clearly at the top of his game and whose company is enjoying the kind of momentum that makes competitors envious. Hurd, who has been on the job for three years, spoke with Industry Editor Craig Zarley on issues near and dear to your heart. What you will find is that Hurd, if anything, is consistent.

ROBERT C. DEMARZO
Can be reached at via e-mail at rdemarzo@cmp.com.

In past interviews and speeches, Hurd has pushed for partners to be more loyal to HP in their sales recommendations to customers. You cannot blame him for pushing that agenda but, as many HP partners say, exclusivity or near-exclusivity might be better in theory than reality. Hurd sticks to his point that the more HP products you attach to an overall solution, the more profitable the sale based on back-end rebates. That is valid as long as HP can execute and churns out accurate data for partners. Partners say they are comfortable attaching products where HP is a leader or where its products are "good enough," but they say storage is one of HP's weaknesses. Certainly, if the product portfolio was stronger they could wrap more HP storage around a midmarket or enterprise solution. Hurd indicated HP is looking to address the issue: "This is an area that is very important and strategic to us, and we're on it. This is a big deal to us." There is no overnight solution, however, so partners will have to be patient—and so will Hurd.

Hurd has a reputation for being candid so his thoughts on the indirect model should comfort partners. "We don't have a super-secret strategy to move everything direct," he said with perhaps a veiled reference to Dell. "There is no super-secret compensation scheme." HP has one channel story, he said, making it much easier for all employees to stick to it and remember it.

Our interview with Hurd is timely for many reasons. First, HP is trying to address partner concerns about the viability of its attach program given recent inconsistencies in its financial-reporting system. Second, given its market-lifting first-quarter results, partners should feel confident the company's momentum will continue and their investment in HP is safe.

In this issue we are also publishing the year's top executives who manage channel strategy or partner communities. We have compiled an impressive list of 100 executives responsible for their companies' North American channel along with several more who oversee global channel strategy. We believe these are the most important executives in the industry. In the print issue you will find only the tip of the iceberg in terms of data on these individuals. Each of them supplied us with a treasure trove of information about their goals, strategies and accomplishments. This year's list features a few surprises, including Dell's Greg Davis and Apple's John Brandon. You can search their entire profiles online at ChannelWeb.com.

Let me know your thoughts on HP and our list of Channel Chiefs
CMP Channel Senior Vice President/Editorial Director Robert C. DeMarzo is at rdemarzo@cmp.com.

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