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Cisco, Dell Have ‘A Lot Of Catching Up To Do:’ HPE Financial Services CEO Irv Rothman

HPE Financial Services President and CEO Irv Rothman say rivals Dell and Cisco can’t match HPE’s as a service pay-per-use financing prowess.

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What is key to the SMB channel gains you have made over the last several years?

Our entire SMB business is built on our ability to have successful interaction with the channel. If you go back five years ago we didn’t have an SMB business. We were pretty much an enterprise and global accounts business. Today SMB is 25-30 percent of what we do. That is entirely channel.

HPEFS went through a business model transformation which we implemented beginning Nov. 1 even in the midst of the pandemic. We now have an SMB channel segment that is part of our highest organizing principles.

It took us over a year to plan to do it and then we rolled it out on Nov. 1, 2020. Our highest organizing principle now is around customer segments and SMB channel is one of our three segments. So we are not organized regionally anymore the way companies are classically organized.

We are organized by segment and SMB channel is one of our three. The other two are enterprise and global accounts.

How big a change was this for HPEFS?

Business model transformation is very hard to do.. It’s disruptive. All of our people have new jobs. They all report to different people now. It is major league disruptive to a business transformation such as we did.

The reason we did this is because it gives us an ability to focus specifically on the SMB channel business because we believe that is the growth area that we can really add some value to. Five years ago, we didn’t have an SMB channel business. Now it’s pretty much one-third of what we do.”

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