New HP Program Angers Enterprise Storage VARs

server storage

Under the program, HP is identifying Proliant server solution providers that have clients who might need a more high-end storage solution than its MSA mid-range and entry-level storage line. At the end of a six-month trial period, those solution providers are expected to go through the certification process in order to continue with the EVA.

EVA enterprise solution providers that made a several hundred thousand dollar investment to bring on the product line complained that the new Fast Track program opens the door for inexperienced VARs to take on the EVAs without proper training and certification.

"HP is desperate," snapped one solution provider, who recently learned of the Fast-Track program. "The program aims to recruit non-HP storage partners, or low-end storage partners, for its enterprise storage. They basically watch a video, and they can then get certified within six months."

Another solution provider called the HP move a "kick in the teeth."

id
unit-1659132512259
type
Sponsored post

"Why should I keep investing in HP for my technical certifications when someone else can come in (without making that investment?)" the solution provider said.

In addition to undermining its current EVA-certified solution providers, the new fast-track program can also hurt HP and its new EVA VARs, the first solution provider said.

"HP is going to have to do the work for deal registration and rebates," the solution provider said. "None of that is simple. None of these guys know the processes. And HP is going to have to do the selling. These new guys don't know how to sell enterprise-class products."

The second EVA solution provider said that HP is trying to drum up new storage business in the face of increasing competition from smaller vendors with the new program without thinking of the effect it has on its current partners.

"We invested hundreds of thousands of dollars in training and sales teams," the solution provider said. "These new partners don't have to go through all that. They don't even know how to spell 'EVA.' They're getting deal registration, back-end rebates, the benefits I get without all the training we've gone through."

HP also doesn't realize the problems it is causing for itself with the program. "The people in the channel are not happy, including HP employees," the solution provider said. "They think they will expand the market. But it will lead to more problems for HP. These partners don't have a clue. They don't understand the environment, they don't know what question to ask. That's why HP has partners like us who have made the investment."

As an HP-exclusive partner, the solution provider said he does not want to see HP get hurt. "But who's going to look at the microcode on the EVA to make sure it works with the customer's host bus adapter cards? Who's going to look at the software and make sure the 10-drive tape library works? How are they going to do post-sales support?"

Ken Fletcher, owner of Quarterhorse, a New York City-based HP solution provider with experience in the ProLiant server and HP MSA storage business who entered the EVA fast-track program, said the program is important for HP, which needs to target the storage space which lies between the MSA and the EVA, a space which the typical EVA solution provider may find not worth the effort.

"Now when customers with multiple servers or blade servers and who have reached the limits of what the MSA storage can do, they can look to EVA storage," Fletcher said. "EVA is a good play there. But for a lot of larger VARs, there's not a big market for the EVA 4000s. It's not an area they pay a rep to focus on. The entry-level EVA maybe costs $45,000 to $50,000, or only 25 percent more than the MSA. This allows HP to have a much better shot at this business."

However, Fletcher said, the training he received was not adequate.

"I don't think they armed us well enough to sell the 4100," he said. "They set us up to train on the EVA 4000, then one month later announced the 4100."

Fletcher said he watched that training video, but the training was not to the level it could have been. For instance, in addition to focusing on older products, HP provided competitive information that was less than up-to-date, including the EMC CX300, which has been in the market for years.

Tom LaRocca, vice president of partner development programs in HP's Solutions Partner organization, said that while HP has been doing well in the ProLiant space, it really wants storage growth in that market. "So we're targeting partners who are doing well with ProLiant, but doing other peoples' storage," he said.

LaRocca said HP told several of its ProLiant solution providers it would provide the training to get them up-to-date on storage quickly, and provide dedicated storage technicians to help them.

"They just bring us the account," he said. "If there is no other partner in the account, we will help them sell it. Then, at the end of the six months, if they qualify for EVA, we will give them training and certification."

The goal of the program is about growth, LaRocca said. "We're trying to provide expertise and bring in new resellers," he said. "We're trying to provide opportunities for them to get involved in enterprise sales, and move them up the food chain."

HP is doing what it can to protect existing EVA partners, LaRocca said. "We're laser-focused," he said. "We're not taking new resellers into accounts already served by HP resellers."

LaRocca said he knows the training video, which he said is actually about one-and-a-half hours long, is not a complete program. "That's why we're attaching an HP storage specialist to the program," he said. "He makes sure the solution providers deliver the right solutions, and makes sure that everything that needs to be done is getting done."

If the existing EVA solution providers did not get word of the fast-track program from HP earlier, LaRocca said he takes responsibility for that. "It's challenging for us to get the word out about everything," he said. "If it wasn't brought up before, we can fix that going forward."

HP's labeling of the EVA fast-track program, which began ni May, as a pilot offering makes many solution providers anxious about what comes next.

"It brings back memory of CDW becoming authorized to sell enterprise storage," the first solution provider said. "HP called it a six-month 'pilot program.'"

Where does it stop, the second solution provider wondered. "If HP thinks this 'pilot program' works on the storage side, will HP give the new guys the opportunity to sell its enterprise servers? The big question is, what are the limits? If it works here, why stop? That's logical."