HP Partners Fear Losing Services Authorization

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The clock is ticking for an undetermined number of Hewlett-Packard (HP) solution providers that are in danger of losing their services authorization because they haven’t been selling enough HP maintenance and warranty services.

Under the terms of a program formally launched last November, HP solution providers that don’t achieve a high enough ratio of HP Care Pack maintenance and warranty services sales as of Nov. 1 stand to lose their HP Authorized Service Provider status by early next year.

While a slew of solution providers have expressed concerns about the program and the potential loss of services authorization, HP Channel Chief Stephen DiFranco pledged in an interview with CRN to work with them on a case-by-case basis wherever possible to help them find a resolution. "November 1 they will not get shut off," promised DiFranco. "The plan is to reach out to any resellers at risk and have discussions and put plans together. The objective is to get them at or near the [HP-mandated] industry average based on the type of product mix they sell."

The HP Solution Partners Organization (SPO) will get complete Care Pack sales data in mid-December and then reach out to solution providers "on an individual basis to make a case for what to do," DiFranco said. He also said partners can e-mail him at sdf@hp.com to discuss individual issues.

HP Care Pack Services are extended warranties and support agreements that can be attached to the full range of HP products -- from $500 notebooks to complex multimillion-dollar storage and server solution sales. The Care Pack services effectively act as insurance policies for customers covering on-site repair, service and support of HP gear. HP partners say the services contracts usually carry significantly higher margins for them and HP than product sales.

DiFranco's pledge could bring relief to a number of partners who fear they are in danger of losing their ability to service and support HP products.


Next: How Does Care Pack Work?

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