The new PartnerOne program is the culmination of a two-year overhaul by HP CEO Meg Whitman aimed at driving sales growth, rewarding partners from the first dollar sold with no cap on how much they can earn in rebate incentives.
Convergent Technologies Group's Monahan, for his part, expects his company's HP sales to increase by 10 percent to 15 percent and profitability to shoot up by as much as 20 percent. The new program has given him the confidence to move forward with additional investments in the end-to-end HP portfolio, he said.
"We see those investments distinguishing us as an HP partner," he said, noting his commitment to add big data software and cloud builder offerings to his HP portfolio. "This program is going to move us ahead five years. It's going to take us to a different level than partners that do not invest exclusively in HP."
Partners achieving HP's top-tier Platinum converged specialist certification selling wireless networking can earn 18 percent (base compensation of 6 percent; accelerator for hitting 100 percent of target 7 percent; and business group bonus of 5 percent for wireless) back-end rebates if they hit sales quotas and strategic bonuses with a total compensation including new business opportunity at 28 percent. That could hit Cisco -- whose renowned Value Incentive Program celebrated its 11th anniversary this year -- hard.
For HP Gold cloud builder specialists selling an HP CloudSystem with 3Par storage, the back-end rebates could amount to as much as 5.5 percent (base compensation 1 percent; accelerator after hitting 100 percent sales target 2.5 percent; and business group bonus for 3Par 2 percent) with total compensation including other incentives at 17 percent. That's a program that could hit Dell -- which has aggressively priced its hyperscale cloud-based server products to gain share from HP -- hard.
Partners are making significant investments in additional HP ExpertOne certification-based sales and technical talent focused on cloud computing, big data and security.
Norbert Wojcik, president of American Digital, an Elk Gove Village, Ill.-based solution provider that recently acquired Southern California MSP Helixstorm, said he is planning to add sales and technical talent to ensure HP Platinum status. He said American Digital will move from one solution architect for every $8 million in HP sales to one solution architect for every $6.5 million to $7 million in sales.
"This is going to be lucrative for us and for HP because we are going to reinvest in selling more HP," he said. "What I really like is HP is rewarding resellers like me that sell the entire portfolio. It looks to me like HP has listened to their top partners."
Wojcik said he sees the program paying off for partners that sell a full HP converged infrastructure solution against partners that may have brought a deal piecemeal to the table with offerings from HP competitors. "Some partners were picking and choosing," he said. "This program is going to reward me for being loyal and selling the entire portfolio. The program is easier to understand and more predictable. I don't have to guess at compensation."
American Digital also is looking forward to benefiting from a multimillion-dollar HP advertising program aimed at talking up HP Platinum partners. "The Platinum status differentiates us, especially going into big corporations," said Wojcik.
NEXT: New Partner Specializations