HP Partners High Five New HP CEO's Channel Charge

HP solution providers attending the computer giant's Americas Partner conference this week are charged up over CEO and President Leo Apotheker's channel commitment and technology vision.

In his first keynote address to partners, Apotheker said that the $126 billion computer giant is "100 percent committed" to all of its partners, a statement that drew loud applause from the crowd of about 2,000 partners gathered for the three day conference.

Calling the channel one of HP's "greatest competitive advantages," Apotheker urged partners to adjust their business models to team with HP to win business in the new cloud computing and connected devices era.

Apotheker said the journey to work with HP to deliver seamless, secure, context-aware experiences for a connected world -- which forms the basis of HP's "Everybody On" global marketing campaign -- will mean higher gross margins and operating profits for both HP and its partners.

HP partners that had been waiting for Apotheker to step up and address the channel directly weren't disappointed. "He seems to be committed to the channel," said Sam Haffar, president and co-CEO of Computex, one of HP's top enterprise partners based in Houston, Texas who has partnered with the company for 25 years. "At first glance he passes the test. The proof will be in the pudding." Haffar said his HP business was up 70 percent in 2010 and he hopes that growth to continue this year.

Bob Venero, president and CEO of Future Tech, a Holbrook New York solution provider, said he was heartened by Apotheker's channel commitment. "I am more comfortable now that I have heard him speak regarding his dedication to the channel," he said of Apotheker.

Venero is particularly excited by HP's channel plan to invest in partners' businesses as opposed to just rewarding them for transactional sales. "That was huge for me," he said. "HP wants to invest in your business and a strategy to go get opportunity. That is what I look for in a partnership. Don't buy down a deal or give me a rebate. Let's go figure out where we want to go and invest together to get there."

Kevin Murai, president and CEO of Synnex, one of HP's top national distributors and one of HP's early pioneers for WebOS development, said Apotheker's vision gets to the heart of the big opportunities that lie ahead for solution providers.

"His message to partners is right on," Murai said. "'Everybody On' is all about the role HP and partners can play with all of the devices and infrastructure they sell every single day. Our strategy and HP's strategy is very much aligned. It all has to do with working in the cloud and enabling mobility."

Synnex developed a mobile application for the Americas Partner Conference that allows attendees to access their schedules and other pertinent conference information via their smartphones. WebOS development is one area of partner opportunity, and Murai sees higher gross margin and higher profits for partners that take advantage of the new HP cloud connected devices strategy.

Next: An Opportunity For Partners To Add More Value

"This provides the opportunity for VARs to add a lot more value to their customers than just being a point of supply," he said. "A lot of what we have done together (at Synnex with solution providers) in the last 10-20 years today is now table stakes. Selling hardware and software is still going to be a scaled and growing business, but where the opportunity is in terms of better profitability is really in the services component."

Murai said that services opportunity is aimed directly at leveraging great HP technology and making it all work seamlessly together. "It is not just stuff you get off the shelf. A lot of it is customized specific to a customer," he said.

Steve Harper, president of Network Management Group, a 25-year HP partner based in Hutchinson, Kansas, is excited by Apotheker's channel commitment. "It sounds like Leo is making himself accessible to the channel, maybe even more so than (former HP CEO) Mark Hurd, who I liked," said Harper. "It sounds like Leo is really embracing the channel."

Harper said HP "gets" the channel and is driving channel economics to drive partner growth. "It is exciting to hear there is no compensation difference for an HP direct salesperson that pushes deals through the channel," he said.

Peter Anderson, president of Bayshore Technologies, a Tampa, Fla. solution provider with $27 million in annual sales whose HP business was up 145 percent in 2010, expects his HP business to continue growing under Apotheker's leadership.

"Mark Hurd was an operational guy and his business acumen could be in technology or any other business where you are driving down costs," he said. "Leo is more of a technology visionary, and that's going to drive more revenue growth for HP. And if they are going to run it through the channel, like they have always done, it is going to be good for us."

Anderson praised HP's PartnerOne program for delivering robust financial rewards for partners committing to the HP product portfolio. He said HP's Virtualization Elite rebates have been critical in helping Bayshore continue to put money back in the business to fund future growth.

Arlin Sorensen, CEO of Heartland Techology Solutions, a top HP Midwest partner, also thinks Apotheker has shown a keen understanding of the channel. "I think Leo understands the channel and is committed to us which is important. He has a holistic view of the channel and is surrounded by great channel people. The HP channel team right now is the best we have ever worked with," he said.

Added Sorensen: "I feel really good about where HP is today and where they are going to take us. With the cloud, they could have chosen to take a different approach and try a direct sales run. Having channel committed leadership is vital for our success."