HP Eyes Fee-For-Services Model For Tech Data, Ingram Micro, Synnex

The model could be similar to what HP already has in place for its enterprise distribution partners, Gilroy said.

Under the HP Integrated Partner (HIP) model, Arrow Electronics' SBM division and Avnet Hall-Mark do not take title to HP products. Instead, they earn an agent fee for fulfilling solution provider demand and performing other services on behalf of HP.

HP plans to pick and choose services offered by distributors on an a la carte basis, Gilroy said, adding that commercial distributors may do sales and marketing services and financial services, for instance, but might not take title to the products. He cited as an example a large insurance customer served by a solution provider. Currently, product title goes from HP to the distributor, then to the solution provider and finally to the customer. Under the new model, title might go from HP to the customer or to the solution provider, with HP paying distributors for transactional or financial services.

"We're not there yet [on determining the new role for distributors," he said. "We're not going to move until we have the customer satisfaction and economic issues worked out. But no one can convince me that a model that has lost money 10 out of the last 12 quarters [as HP's PC business has can continue."

While the PartnerOne channel program for solution providers is set to go into effect Nov. 1, distributor contracts will stay in place until February, with changes to the current model likely to follow in the spring. "The distributors are with us step by step [as HP builds a new model," Gilroy said.

Distributors have expressed concern that HP may shift too rapidly to a fee-for-services model that would take away millions of dollars in top-line revenue. But Gilroy said HP has the ability to "turn the knob" on the changes to minimize the disruption of current business models. "We have no plans to shock distributors," he said.