Page 2 of 7
How about recurring revenue?
Big time! Absolutely. And thank you for hitting on that because one of the seminal elements of our strategy inside of PSG side is transitioning away from a transactional model where the way we pay people, the way that we guide R&D [research and development] was based on the transaction to a lifetime value model where, 'Look I am going to make five bucks on the PC I am going to sell you, but I want to make $5,000 on the relationship that I have with you and [the relationship] that my partners have with you.'
So this is a new world. Now the one point that is very fair is this isn't going to all happen in the summer of 2011. This isn't all going to happen in two weeks. The world is going to hear a lot about our strategy and our vision over the next handful of days as [HP President and CEO] Leo [Apotheker] and all of us get up there and share the vision. I think it is an exciting, comprehensive vision. Loud! It is man on the moon which I think is motivating for our 320,000 employees and our 100,000 plus partners worldwide.
It is great for our retail partners. The retail world has changed. You live in the U.S. You know it extremely well. Bookstores are going away. You haven't been in a Blockbuster in a while because they are not there anymore. Circuit City went away. Ultimate went away. This also speaks to the consumerization of IT.
I think our partners are going to be excited and motivated, but like any partner they want to know how do they operationalize this vision in the context of what they are trying to do, how they are going to grow, and look we all talk about things like cloud and connected devices and our industry is evolving at a different pace with a different set of criteria that defines whether you are going to win or lose. So all of us [have to evolve]. We have to evolve. Our operating model has to evolve. Our investment in technology has to evolve. And our partnerships need to evolve.
Provide some details around how the partner program incentives that you might bring to bear to make this happen?
Before I get into the specifics of the programs, I think it is very important to talk about what is the portfolio and the story that we want our partners to amplify and go kick ass with in the market.
We compete with everybody on the planet. I mean who doesn't compete with HP? And who does HP not compete with? If you want to just take from a metaphor perspective IBM on one side and Apple on the other side. Look we compete across the entire continuum both the kind of traditional siloed business. We compete in storage. We compete in servers. We compete in networking. We compete in PCs, thin clients, workstations. We compete in all of those spaces. What you are hearing from HP now though is that above the hardware, above best in class, kick ass, 'my router is better than your router,' 'my switch is better than your switch,' 'my PC is better than your PC,' we are investing into applications experiences, solutions, service led offerings that are above the hardware and from the data center to the consumer.
Next: The New World Order
<< Previous
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
Next >>
