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HP maps out PartnerOne changes

by Stuart Wilson, Wednesday 1 April 2009

HP will implement a number of changes to its PartnerOne channel programme as of May 1st 2009. HP claims that the changes will provide partners with a streamlined product offering, easier business processes, as well as more competitive pricing and compensation. According to the vendor, partners will also benefit from an improved cash-to-cash cycle and more predictable compensation.

“In today’s environment, our partners have neither time, energy nor money to spare - we need to help them make the very most of every business opportunity,” said Antoine Barre, VP SPO EMEA at HP.

“We are moving to a more streamlined and simplified business model that we believe will be more predictable for our partners, allow them to grow their business with HP and turn their cash faster,” he added.

In terms of its product portfolio, HP plans to integrate imaging and printing group (IPG) hardware and supplies partners under a single accreditation and partner programme. The vendor claims that this will provide IPG-focused resellers greater flexibility to choose their own market offering, opening up new sales opportunities. Additionally, these partners will benefit from a single point of contact, enabling more efficient, lower-cost account management by both HP and its partners.

The personal systems group (PSG) will introduce a new product portfolio for the small-business, small-office (SBSO) segment, combining the best of its current commercial and consumer product families. This portfolio will benefit from aggressive up-front pricing and be available for orders in bulk quantities, helping to reduce administrative and supply chain costs for HP and its partners.

HP will also streamline its PSG and IPG product portfolios, with plans to reduce the number of IPG configurations by up to 30% over the next six months, and the number of PSG SBSO configurations by up to 35%. It is claimed that these reductions will help to lower the amount of time that resellers spend choosing configurations and that distributors spend managing inventory.

HP is also streamlining its Pay for Results (PfR) compensation model for both reseller and distributor partners, in a move that could help partners through the current economic difficulties by improving their cash-to-cash cycle and providing greater predictability in their earnings.

HP is planning aggressive up-front pricing for the PSG SBSO line-up and fixed-rate linear compensation schemes for resellers on other PSG products, helping improve earnings predictability and lower administrative costs related to promotions and claims handling.

The vendor will also simplify compensation on its IPG hardware and supplies portfolio, reducing administrative time and costs associated with setting and tracking targets

HP will also make a discernable shift towards front-end rewards for partners, reducing channel reliance on back-end incentives. In its release on the changes to PartnerOne, HP explained: “Rebalancing of distributor composite margins towards front-end compensation, helping improve partner cash-to-cash cycles by reducing their dependency on back-end rebates.”

Partners will also benefit from higher IPG PfR compensation plus a twice-yearly business plan for IPG business, which will enable resellers to benefit from additional compensation upon sales-target achievement

HP will introduce higher fixed compensation rates for PSG services and an expanded range of accessories to help resellers grow their ‘attach’ business. The vendor will also offer what it describes as ‘more compelling’ compensation on high-end PCs and notebooks. PSG specialist partners will also receive higher compensation on products such as workstations and thin clients

HP also plans to support its tweaked product portfolio with additional co-marketing funds for integrated end-to-end demand-generation campaigns.

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