By
Jennifer Lawinski
16 October 2007 03:26PM
Tags:
hp | midmarket | vars
HP is serious about growing its midmarket business through the channel, and it's bringing new products, programs and dollars to the channel to help it get there.
"I will commit to you that HP will have many, many more bodies dedicated to enabling partners and helping partners sell into the midmarket," said Frank Rauch, vice president, technology solutions group sales, solution partners organisation, Americas, for HP, told solution providers at Ingram Micro's VentureTech Network Invitational in Las Vegas.
"We want to make it as easy as possible for your customers to accept our products in the market. I will stand here today and commit to you that the majority of the dollars that I have available to me, that Adrian Jones has available to him, are being funneled towards the midmarket," Rauch said.
To help solution providers tap the midmarket, HP will be offering more co-funded resources and the company is investing US$3.5 billion in research and development of midmarket products, he said.
HP's Blade System c3000, a blade server solution designed for the midmarket, is one example of the company's forthcoming midmarket product set, and solution providers can expect more.
The company's midmarket strategy centers around products, partner enablement and partner programs, Rauch told ChannelWeb.
"I think what we've learned is that the midmarket segment is a different animal. It will continue to be a different animal. They do want to be treated differently. You do want to leverage everything you're doing for other segments whether it be corporate or enterprise, but leveraging is different than saying we're going to downsize it or do whatever to make it fit the midmarket," said Rauch.
The c3000 fits with that vision, he said, because it's easy to manage and a midmarket company can incorporate it into its IT infrastructure without needing to create a data centre while getting the perks and manageability of blades. Rival IBM is also bringing a blade solution, the Blade Center S, to market this month.
"Once you have a product like that then you have to put it together," he said.
In addition to its products and programs, one thing HP can do to help solution providers is to help bring confidence in its solutions to midmarket customers. "They don't want to be the pioneers. They want something that big companies like to buy. They want to go with the trends in market. They want it at a price point they can afford and, most importantly, they want the confidence that it's going to be bullet proof when they put it in their environment," he said.
For Ken Fletcher, VTN member and CEO of Quarterhorse Technology, New York City, Rauch's words at the VTN Invitational inspired confidence in the company and its c3000 product.
"I think it's good that there's good market awareness. He was straight up. Everyone tries to put their best foot forward and not tell you were the real defects are, but I think they have a real winner with the c3000," said Fletcher.
Some VARs, however, are skeptical.
J. Chase Boles, president and CEO of Bailey Computing Technologies, Gray, Tenn., said HP will need to prove its ready to play nice with the channel as it moves to rake in more of the midmarket IT spend.
“I'm not convinced that they really value the partner channel as much as they should. I see them going more and more direct like Dell. I would prefer to see a stronger partner relationship and partner channel relationship," said Boles.
At the same time, the products on offer, he said, are worth taking a look at.
"It's getting better, but I think they still need to do more. I think that the new SMB and midmarket blade systems are good products. I think we'll be able to sell that. It's a good fit for a lot of our customers," Boles said.
See original article on CRN.com