HP Shifts 750 Direct Services Accounts To Solution Providers

The move is designed to get local HP business partners on site in the 750 midmarket accounts in an effort to get the channel to sell more HP products and services to the customers whose maintenance contracts were handled by the vendor's direct telesales reps.

Jo Ann Redding, vice president, HP services sales for channel partner accounts, said HP put out an RFP to partners and 33 were selected to participate based on their services skills and their proven commitment to HP solutions. Partners were also selected based on geographic location, she said.

"This is an opportunity for partners other than just simply renewing a maintenance contract," said Redding, noting that having an HP partner onsite creates an opportunity for the partner to sell HP services, software and hardware into the account.

She said that with HP Services handling the contract renewal process, most often that entailed calling the customer once a year at renewal time.

Junab Ali, co-founder of Mobius Partners, a San Antonio HP business partner selected to participate in the services program, agreed. "We can be more proactive and add more value [than HP direct services]," he said. "It's a huge difference for a customer to pick up the phone and call someone local rather than calling an 800 number."

As part of the services transition, HP sent out a letter to the customers being transitioned from direct services to partners. The letter said in part, "Now, more than ever, HP Business Partners play a key role in HP's ability to effectively manage our customers' technology needs. Hewlett-Packard has selected the most qualified HP Business Partners in your area, and these preferred partners have been certified by HP as having invested in the personnel, tools and product training to best serve your needs. HP Business Partners are a true extension of HP, and successfully manage a significant portion of HP customer support agreements today."

Ali said that within days of the letter being sent to customers, Mobius signed up two new services accounts.

Don Richie, CEO of Sequel Data Systems, an Austin, Texas, HP solution provider that was also selected to participate in the services program, said he was encourage by HP's plan to turn over new accounts to the channel. "So far we have not seen any business as a result of this but then again we are just getting started so I really believe it will happen fairly soon," he said. "This a big step for HP and I applaud them for it."

Another HP enterprise solution provider selected for the services transition program that asked not to be identified said HP tried a similar plan over a year ago but it failed for lack of support and promotion by HP. "Basically, they sent out an e-mail to customers and left it up to them," he said. "Nothing happened. We got zero business as a result."

The solution provider said he was cautiously optimistic about the latest program, but still wished HP would simply pull out of the maintenance renewal business in the selected accounts instead of giving them an option to resign with HP.

Redding said that HP is following a strategy of "customer choice" in the selected accounts. She said that to date only 2 of the 750 accounts have decided to keep their annual maintenance renewals direct with HP Services rather than transitioning over to the channel.

She said that the value of the maintenance contracts involved was all below $100,000 but that most were just slightly below that figure. She said that those contracts were chosen because partners said that was the size of customer that would give them the most up selling opportunities.

Redding noted that customers can name their solution provider partner or go to the HP website and select qualified partners in their area from a pull down menu.