Channel To HP: Overhaul eHIP

The most recent problems center on sales discrepancies in which the solution providers said their internal HP sales records don't match those coming from HP and distributors. As a result, some solution providers say they can't get proper credit for PartnerOne rebates.

"The problem with reporting not being done right is that then the HP field organization doesn't get credit [for channel sales] either," said Don McDowell, vice president of server solutions at Forsythe Solutions, one of HP's largest enterprise solution providers in Skokie, Ill. "It only fans the flames of the antagonistic relationship between the HP field organization and the channel."

Gary Melillo, vice president of business development at Melillo Consulting, a Somerset, N.J.-based HP enterprise solution provider, said HP's Unix channel business is taking a hit. "I don't think IBM has better products; I just think IBM is executing better," he said.

Prior to Feb. 1, HP set pricing on enterprise systems and shipped the products directly to solution providers. Under eHiP, HP still handles shipping but distributors set pricing to solution providers.

"[Prior to eHiP] it was crystal clear--what HP shipped out the door, HP billed," said Joe Burke, vice president and general manager of enterprise computing solutions at Arrow Electronics' North American Computer Products group, Englewood, Colo. "Now HP bills me, and I bill the reseller. There are some EDI feeds and backup stuff that people have to get organized. There have definitely been some issues around reporting."

Susan Reynolds, HP Americas vice president of partner development and programs, said HP was working on the problem. "Each [enterprise distributor] has a unique [IT] system, and we are working to improve the process associated with it."