HP Getting More Price Aggressive, Moving Fast For DRAM Supply

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HP's Solomon said new HP Executive Vice President of Printing and Personal Systems Dion Weisler, who took the top PC and printing job nearly three months ago, has put in place more "operational rigor" as HP steps up its PC and printing new product attack.

"In the past we have had to limit the number of deals or the amount of volume we do through the channel at the lower price points because frankly we couldn't afford it," said Solomon. Weisler, he said, has made HP's PC and Printing group more customer focused. "If there is a large market, for example, in the under $500 commercial PC space, if we don't have the right product, we can't just walk away from that. We have got to develop the right product, have the right cost structure and win. We are going to win in all the relevant price points."

HP is sharply focused on determining the biggest market opportunities by price point for all the major PC and printer category segments. "We have literally [a spreadsheet with] page after page by price points, the size of the market, the opportunity and the HP share," he said. "Our strategy is, for each of those segments that are relevant, HP is going to grow faster than market. Then we make sure we have a product set that can support that."

U.S. Channel Chief and HP Vice President and General Manager PPS Scott Dunsire said partners are excited by the more aggressive HP product offerings. "There is a lot of excitement and enthusiasm around aggressiveness in price bands where there are [new] opportunities for our partners," he said.

Ted Glahn, CEO of ProSys, a $600-million solution provider and HP partner headquartered in Norcross, Ga., who attended the one-day HP event, said he sees HP as a much more aggressive, sales-focused organization under HP CEO Meg Whitman.

"This place is packed," said Glahn of the HP PPS event. "They are really getting the crowd going with new product introductions. Meg has really brought a different attitude to HP. HP has always been an innovator, but under Meg they have become a sales-focused company. Their people in the channel are much more involved in the sales process and sales opportunities. We see a lot of improvement from HP in terms of supporting the channel."

That sales focus has resulted in more joint selling between ProSys and HP, said Glahn. "We are starting to see HP sales people coming into our office building relationships with our people," he said. "Sales are made based on relationships. Getting their salespeople and our salespeople working together creates an environment where you are going to win most of the time."

Glahn said he expects his HP business to be up about 20 percent this year and another 20 percent in 2014. "Meg has really started to turn it around," he said. "We are seeing much more competitive programs and incentives from HP."


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