HP Updates Storage Elite Program

The ESE program, rolled out in conjunction with HP's new PartnerOne, is an extension of Compaq's Enterprise Storage Solution Specialization (ESSS) program, he said.

ESE partners must meet SAN certification requirements and sell $150,000 in HP enterprise storage per quarter, up from the $125,000 requirement under the legacy Compaq program.

In addition, Burke said HP is reducing competition between partners to improve margins by breaking U.S. sales into 11 territories, from the five territories under Compaq.

ESE partners will receive additional rebates for membership in the program. HP is still working on the rebate structure, but it should be similar to the 4 percent under the legacy Compaq plan, Burke said.

HP hopes to maintain about 50 partners under the ESE program to make sure each major metropolitan area is covered by two to three elite storage solution providers, he added.

Because of acquisitions, closures and inability to meet the minimum revenue bar, HP will drop about 20 current partners from the program, Burke said. At the same time, however, HP will recruit new partners.

Final details of the plan should be worked out by the end of the year, he said, noting that the ESE program will be separate and distinct from HP's PartnerOne channel program.

"The product access is different than PartnerOne," he said. "Whether you are a [PartnerOne Platinum or Gold member doesn't automatically give you the capability to sell all of the products."

"This is great news," said Don Richie, president of Sequel Data Systems, an Austin, Texas-based solution provider that expects to be part of the ESE program. "This will mean if I have an enterprise storage deal in Texas, I won't be competing against someone from Minneapolis."

One current ESSS partner said expanding the program is fine as long as potential new partners pass the required tests.