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Cisco, HP, HPE, Dell And Lenovo: As A Service Takes ‘Risk’ Off Partners

Top executives from Cisco, HP, HPE, Dell Technologies and Lenovo discuss taking on more risk and liability for channel partners as more customers seek to consume IT as a service.

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Laura Laltrello

Lenovo

VP, GM, Data Center Services

It changes the risk. With TruScale, in terms of the balance sheet, we own the capital asset. So when we are creating the workload, sizing what the customer needs, sizing exactly what stack to put on it—it's a shared risk now with the customer and us. So if we do it incorrectly, the financial burden is on us. It's the profit we lose. So it helps create this bond and empathy with the customer and with the channel partner on that shared risk. Now if the partner has decided to financially fund the asset, then they would take on the risk and the asset would sit on their balance sheet, but it no longer sits on the customer’s. So it depends on the model the partner wants. If they want the model where they can come to us and use TruScale, we take on the financial risk—nothing changes for them. If they have their own leasing or consumption model that they are selling as well, then it would be on their balance sheet.

CRN: Do partners want you to take the risk?

Many of them would prefer that we take the risk. We're taking the risk and they're still getting the stickiness with the customer. So the nice thing is it is a shared risk that's passed through the channel partner. The channel partner has the relationship with the customer so they get both benefits. They get the benefit of not owning the risk but owning the relationship.

 
 
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