HP's New Imaging, PC Boss Vows To Leverage The Channel

The head of Hewlett-Packard's new combined imaging and printing and PC group vowed to leverage the channel for more growth.

Vyomesh Joshi, formerly executive vice president of HP's Imaging and Printing Group, will head the new Imaging and Personal Systems Group, which folds the PC business and printing business into a single unit. Duane Zitzner, formerly the executive vice president of the Personal Systems Group, retired Friday in the wake of the group merger, Palo Alto, Calif.-based HP said.

"We are combining these two groups to drive profitability, and I've always believed that the channel assets that we have are extremely important," Joshi said. "This will allow me to use all of the assets that we have, from product generation, to supply chain, to go to market, especially the channels, to really figure out the right value proposition for the customers and to drive profitable growth."

Solution providers welcomed a strong channel advocate at the helm of HP's PC and printing business.

"VJ [Joshi] is very familiar with the channel and very pro partner," said Rick Chernick, president of Camera Corner Connecting Point, a solution provider in Green Bay, Wis. "[Combining the two groups] is not going to be an issue for us."

Chris Ferry, executive vice president of Technology Integration Group, a solution provider in San Diego, said he was surprised by the move but said it could have a positive impact on the channel.

"The imaging group has always been more channel-centric than the Personal Systems Group," he said. "This could be a good opportunity for the channel."

But some solution providers fretted over combining the imaging and printing group, the most profitable HP business segment, with one of its least profitable. "I can't believe they'd do it," said Stephen Allen, president of Integrated Technology Systems, an HP solution provider in New York. "They're combining money-making and money-losing groups together. I hope HP doesn't leave the PC market."

Added John Marks, CEO of JDM Infrastructure, an HP solution provider in Rosemont, Ill.: "The question is: Is this move to put the PC group in with the printing business a strategic move to improve business or is it Wall Street motivated? The printing and imaging business has always been a very profitable part of HP's business, while the PC business, as IBM has demonstrated with the sale of its PC business to Lenovo, is obviously not as profitable as shareholders want it to be. I am hoping that by imaging and printing merging with PCs it helps create a more cohesive company with respect to how HP treats the channel."

Joshi said he is planning to leverage the channel to go after new market opportunities for both imaging and PC products. "The important thing I believe is that we can build new categories," he said. "We can go after not only mass markets but micro markets, and the channel will be very important for us [to do that]."

JOSEPH F. KOVAR & STEVEN BURKE contributed to this story.

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