Page 2 of 2
In some cases, NWN's Phelps said, the server execution issues are the result of just being too slow to respond to competitive situations with special pricing or relying too heavily on doing custom configurations on each and every deal, he said.
Phelps said that anyone who expected the HP turnaround would go off without a few bumps in the road was being unrealistic. "If anybody thought that all the problems and years of operating in certain ways would be changed by now, they are naive," he said. "The world doesn't work that way especially in a large complex organization like HP. You just can't make the transition this quickly. It is going to take time. There will continue to be bumps in the road, but I feel as long as Meg and HP continue to be committed to working with the channel for mutual success we can make it happen."
Phelps said he is having success in the sales trenches with the robust HP product and services portfolio. He expects his HP business to grow 30 percent this year. "HP is going to make this work," he said. "It's the old story of the time it takes to move a battleship. Some people within HP kept doing what they were doing, and with Meg that is not acceptable. Anybody that is not on board to do the right thing is going to be at risk of losing their job. And that is a good thing."
One of the bright spots for HP is a revamped PartnerOne program that HP partners say is already helping them drive sales growth.
"Our channel partners have just gotten their first checks from the new compensation program that went into effect in June," said Whitman. "There is some light at the end of that tunnel. We feel good about the changes we made to our partner selling motion.
"But go to market is more than just a coverage model," cautioned Whitman. "It is our ability to price. It is our ability to provide the specialists and solutions architects that are needed to sell. It is about our ability to provide compelling bundles of servers, storage and appliances. It is a holistic view of go to market."
Whitman said she sees more sales account consistency, but there is still work to be done. "Frankly my view is we have made this a bit too complicated than we need to," she said. "My experience in sales organizations is simplicity and clarity of role, and the right people against the right opportunity is critical."
Even with the enterprise sales issues that need to be resolved, Whitman said she remains confident in HP's turnaround. "This is a journey," she said. "We have achieved a lot of milestones along the way. And, I am confident that we are on the right track. And, I am really excited about this new management team and what we are going to accomplish for the benefit of customers, shareholders and employees."