Hewlett Packard is unleashing for the first time the full power of its lucrative PartnerOne program to accelerate the solution provider transition to new cloud computing business models.
In what is surely the biggest potential partner profitability game changer at this week's HP Global Partner Conference, HP is officially bringing new cloud computing specializations to PartnerOne with new training, incentives and rebates in what is being referred to as PartnerOne for Cloud.
"This is awesome," said John Kolimago, vice president of technology solution sales at Anexinet, an HP Platinum converged infrastructure partner based in Blue Bell, Pa. "This is going to remunerate us for extending the private infrastructures we are building today into HP's hybrid cloud and OpenStack technologies and into the HP public cloud."
Ultimately, putting cloud into the "industry leading partner program" sets the stage for future cloud computing sales growth for Anexinet, said Kolimago."This is the way the world is moving and we have to embrace it," he said. "This absolutely makes it easier for us to do that. HP has been a great partner to us for so long. They understand us. We call on the same customers together. It is a natural extension of our selling model."
The new PartnerOne for Cloud comes with virtually 100 percent of Anexinet's customers looking at cloud computing options, said Kolimago. "The ones that concern me the most are the ones that aren't having the cloud conversation with me today," he said. "If they are not having that conversation with me they are having it with somebody else that wants to eat my lunch. What better way to take that conversation to them than in the context of the biggest brand out there in IT -- HP."
Under the new HP program, which will be rolled out in more detail in May and officially be put into PartnerOne effective Nov. 1, there will be three new cloud specializations: HP CloudBuilder, HP CloudReseller and HP CloudProvider.
"We are going to help our partners on every step of this cloud journey as they evolve their business models," said Steven Dietch, vice president of worldwide cloud for HP's Enterprise Group. "We are lighting a fire with this program. HP intends to be the leader in this market."
HP PartnerOne for Cloud is providing the critical training and investments to help partners move to the new style of IT that is reshaping the marketplace, said HP PartnerOne Director of Marketing Strategy Patrick Eitenbichler. "Partners need to invest to future proof their business," he said. "The annuities are small at first, but a few years from now they will be ten times what they are now and life will be very good for partners. If partners wait three or four years and don't get into the game now it will be very, very difficult for them."
The PartnerOne cloud incentives are robust, according to HP. For example, HP's current crop of 100 CloudBuilders that are building on premise private clouds for customers make up to 23 percent rebates combined in up front and back end rebates, said Eitenbichler.
Under the HP CloudProvider for PartnerOne for Service Providers, the current crop of several hundred HP powered cloud service providers, which grew 50 percent year over year, are provided market development funds (MDF) for demand generation along with co-selling opportunities with HP sales reps and HP solution providers, said Eitenbichler.
HP is also upping the ante with its CloudReseller program by training its HP Gold and HP Silver partners to do the high margin cloud systems integration services work, said Eitenbichler. "This is going to allow partners to maintain their trusted advisor relationship with the customer," he said.
Some partners have been walking away from systems integration cloud services opportunities as customers move applications like ERP to the cloud, said Eitenbichler.
"That is the worst thing they could do," he said. "They lose their trusted relationship with the customer and walk away from lucrative services revenue. We are going to enable them to do integration work whatever it may be. We want the reseller to advise the customer on SLAs (Service Level Agreements) and then integrate the cloud services with on-site IT to deliver a consistent seamless experience to the end user. That way they maintain their trusted relationship and get the high margins on the services that make up 70 percent of the cloud sale in the first year."
NEXT: HP CloudReseller Levels And Incentives