Two-Way Ties Dominate

"HP's focus with partners on joint profitability and creating demand together through mutual investment is paying dividends," says Susan Reynolds, HP's vice president of partner development and programs for the Americas in Fort Collins, Colo. "Together, HP and its partners in the United States have produced more than 1,000 joint business plans, determining investments and marketing activities to grow business."

Having a competitive partner program is key for vendors in any ARC category. "HP has not done away with the individual solution provider like us. What other companies lose sight of is that people want to talk to people," says Adam Fuller, an HP reseller and general manager of Aamcomp, Oklahoma City. "HP has done everything they can to make sure there is a person-to-person relationship."

Of interest, according to Gartner Dataquest, at least 25 percent of all notebook PCs purchased in 2004 will have a hardware failure by 2007. VARs who service this market segment and are looking to nab new customers can capitalize on that, considering most of those notebooks will have to be replaced. Gartner Dataquest also forecasts a drop in notebook pricing of roughly 10 percent per year beginning in 2004, driven by competition, offshore manufacturing and improved business practices.

"People will purchase on price once, but if the service is not there, they won't go back," Fuller says. "Price will be less of a motivating factor in the future."

Consequently, desktop and mobile PC unit shipments to enterprise as well as small and midsize businesses seem to be on the upswing through 2008. The one-size-fits-all notebook solution has come to an end, Gartner Dataquest also found. More innovative products will help VARs and IT managers meet the specific needs of the mobile workforce. Those who travel a lot prefer models that are light, thin and have extended battery life. Telecommuters may opt for desktop replacement models with bigger screens and more power. For their part, tablet PCs, although not yet mainstream, are also beginning to replace standard clipboards. This space will definitely be one to watch in the coming years.