HP Execs Fire Back At Competitors At HP World

David Booth, senior vice president sales and marketing for Americas enterprise segment for HP's Customer Solutions Group, told HP World attendees that the "operational issues" surrounding the server and storage business have been addressed and HP is ready to take share from competitors.

"We've addressed the operational issues and we have made some management changes," he said. "We are absolutely positioned for growth and we are ready for vigorous completion. When we look at where Dell, IBM, EMC and Sun are, we clearly have our eyes set on where we will be able to take and gain share from each one of those competitors."

Booth's comments came after Sun and IBM both said they have launched initiatives to wrestle accounts away from HP in the wake of an earnings disappointment last week that sent HP's stock plunging 16 percent in one day.

HP partners and customers attending HP World were still digesting the earnings shortfall in the company's Enterprise Server and Storage business which resulted in the firing of two executives, Peter Blackmore and Jim Milton.

HP said problems in implementing a new SAP inventory and logistics system caused delays in filling orders and was partly to blame for a $208 million operating loss in the third fiscal quarter ended July 31 in its enterprise business.

Rich Baldwin, president of Nth Generation, a San Diego-based HP enterprise solution provider, said he still has HP Proliant servers on order since June which have yet to be delivered.

What's more, Baldwin said HP competitors are anxious to get him to switch his allegiances. "IBM's been knocking at my door and I've gotten bombarded by EMC here at the show." He's also had to contend with concerned calls from customers asking about switching away from HP because of the company's troubles.

But he says he resisted any attempts to stray from HP. "From my point of view, the Proliant servers at the high end are the best products on the market. My customers are willing to wait for them."

In an interview with CRN, Booth said "90 percent" of the supply chain issues are behind HP. "The good news is we are now working through the final items on that," he said. "That should not be an issue to speak of going forward."

Ann Livermore, executive vice president of HP's Technology Solutions Group, told CRN she is anxious to take on competitors looking to steal HP customers in the wake of the earnings disappointment. "We've had a Solaris to Linux migration program going on for two years; we have a mainframe replacement program going on that we've already done a hundred deals," said Livermore. "Their [Sun's and IBM's] customers are quite vulnerable. So bring them on."

Denys Beauchemin, the chairman of the HP Interex User Group Board of Directors, said HPs troubles have not shattered his confidence in the company. "It's just a new set of heads," said Beauchemin, who heads up BeauDeux, a Spring, Texas, migration and storage consulting firm that recommends HP products. "They have been changing people for many years. They still have great products."

Booth said that HP has an architectural and solutions advantage that partners can take advantage of by teaming with HP. He stressed that HP is aiming to get much more aggressive against Sun with Linux application porting and migration services.

"We are going to continue to work very closely with our key partners," said Booth, who was meeting with HP's enterprise partner advisory council last week when the management changes were announced. "They are in the boat with us. Our partners understand there is a tremendous opportunity to work with HP and we have a tremendous opportunity to work with them."

Although HP's enterprise and server group hit a bump, Booth said the company overall is gaining market share in every other business including printing and imaging and personal systems.