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Talk about professional services enablement and innovation enablement that you might do with partners.
When you start talking about these things and, again, it doesn't apply to all partners in the same way. So I have to make this caveat over and over and over again because it is not binary. I believe our channel partners are actually doing some of this already. They understand by themselves that the old transactional model is still there but they need to do more than that. They need to be viewed by their customers as full-fledged partners and by the way some of our partners have already put up clouds for their own ecosystem and that is a great thing. I think it is a fantastic idea and maybe we can aggregate some of those and create an even larger ecosystem and HP would support that.
So we need to encourage our partners to think around a number of dimensions: We already discussed business model innovation which I think is something that everyone has to do as a matter of hygiene on a regular basis. I think for some of the more transactional based partners it is probably something they want to look at sharply because I do want them all to be successful.
Secondly I think they probably need to look at how they can transform some of the service models. So if I am a more services based channel partner do I still want to continue doing it the traditional way? Is there technology that I can get maybe from HP that would enable me to do a more leveraged service model or an IP [intellectual property] richer, or an IC [intellectual capital] richer, venture capital richer service model which I think would be interesting for the channel as well. And then I would try to broaden my portfolio as a partner. There is no reason why I should only be a partner for X or Y, why wouldn't I want to embrace the security software portfolio of HP and add the security element to everything I would do for my customers, which by the way, customers would really appreciate.
Will there be new incentives for partners
You mean more money? Help me understand so if we educate someone to do more business and make more money we have to pay them even more money to do that?
Well maybe incentives to get partners carry the full portfolio. How about attach rate incentives?
I wonder what attach is worth these days. So if you talk about business model change it basically means what drives what. So attach might be a two-edged word. What drives what becomes in the future a more dynamic situation. I think that what we need to do is, A), provide all the channel incentives that we need to provide to encourage people to open their minds. That is way more important because I do count on the entrepreneurial spirit of many of our partners, to give them the chance and the opportunity to look [at the opportunity].
At the end of the day it is their decision and then we will help them be successful. But where I come from at the end of the day it is the customer need that should drive behavior. If we all agree, just to hammer on this point of security, because it is an obvious one, security is such a huge issue, help me understand why a partner would not want to do security, because he doesn't want to do business?
Well they might be doing security with another vendor.
But the point is I think we have a very unique offering. Our job is to make sure that people understand that our offering is better.