Some HP VARs Singing The Service Blues

Complaints include the inability of HP to track and deliver spare parts, customer names not showing up in HP systems when customers make warranty calls and an apparent lack of urgency when dispatching HP service technicians.

Service problems are "HP's No. 1 challenge right now, and [that] has to be fixed," said Felise Katz, CEO of PKA Technologies, an HP enterprise solution provider in Suffern, N.Y.

"The have real problems with service that are getting worse by the day," said another HP enterprise solution provider who requested anonymity. "HP has fixed its enterprise channel issues. Now it has to start with services."

Jack Novia, managing director of the Americas for HP's Customer Solutions Group, said he was aware of some service issues and he would listen to HP's enterprise VAR council to better identify specific problems.

"We did have some transition issues with our spare parts, and some customers have felt that pain. I am personally working with those clients," he said. "And we have had some instances when our services ability has not been that good, and we are working that out right now with the business partners. We are trying to raise the level of sensitivity in that area right now."

However, pending personnel cuts in the HP services organization could hamper his efforts.

Ann Livermore, executive vice president of HP's Technology Solutions Group, said during HP's first-quarter earnings call last week that 60 percent of the planned workforce reductions for the second quarter would come from HP's services business. "We are going to continue to do whatever we have to on the cost reductions, both in the delivery cost as well as the op-ex [operating expense] cost, to hit the goals that we have," Livermore said.