COMDEXvirtual: HP Partners That Go 'All In' Reap Big Rewards


Hewlett-Packard solution providers that are going "all in" with an end-to-end HP product portfolio experienced nearly three times the sales growth in 2010 of other HP partners.

That sales growth rate seen by those end-to-end HP partners outpaced not only the sales growth of other HP solution providers but also the growth rate of the U.S. IT market, said Meaghan Kelley, HP Vice President Channel Strategy & SMB of Americas Solution Partner Organization (SPO).

Kelley spoke spoke during a session Tuesday at COMDEXvirtual, the online conference hosted by CRN parent company Everything Channel. The show takes place November 16 - 17, and sessions are available on-demand until May 17, 2011.

Solution providers embracing the full HP "franchise" product portfolio enjoyed sales growth of 18.1 percent in 2010, compared with 6.5 percent of other HP partners, said Kelly. That 18.1 percent growth rate was nearly six times the growth rate of the U.S. IT market and nearly nine times the growth rate of the U.S. Gross Domestic Product (GDP), said Kelly.

HP Franchise partners are defined as those that derive more than 70 percent of their annual sales from HP products by selling across HP's multiple business units from PCs in the Personal Systems Group to converged network infrastructure in the Enterprise Business unit to managed print services in the Imaging & Printing Group.

HP paid out $500 million in financial benefits in the U.S. in 2009 to about 25,000 partners from its lucrative HP PartnerOne channel program, said Kelly. She said she expects that figure to be even "richer" this year and next given the enhancements HP made to the PartnerOne program effective Nov. 1, the start of HP's new fiscal year.

"The empirical data shows that partners going all in with HP are growing faster and earning more," said Kelly."We look forward to finding more ways for them to do that in the future."

John Convery, executive vice president of vendor relations and marketing for Denali Advanced Integration, one of HP's top franchise partners headquartered in Redmond, Wash., said he has not seen a more robust partner program than HP's PartnerOne in his 30 years in the IT business.

Denali's HP business is up more than 10 percent in 2010 and its HP Networking business is up more than 100 percent in 2010, said Convery. But it's not only sales growth; the profits that come from Denali's PartnerOne investment are ten times more than other vendor programs, said Convery.

"HP is the only vendor that has an end-to-end complete IT solution from a handheld device to the data center to managed print services," Convery said. "Because Denali is one of the few solution providers that sell that full portfolionwe get the profit benefit, which includes backend escalator rebates for bringing a complete end-to-end HP solution to the table for a customer."

"The bottom line is the customer gets a great experience and the channel makes more money with HP than any other vendor in the business," said Convery.

 

NEXT: HP's PartnerOne Benefits Are Resonating With Partners