Hewlett Packard Enterprise has suspended revenue thresholds for both its HPE and Aruba Partner Ready channel programs as a part of a broad coronavirus relief package.
The revenue threshold relief ensures partners will stay at the same level in the two Partner Ready programs for 2021 even if they do not meet revenue commitment levels in wake of the coronavirus pandemic.
HPE has also provided dramatic financial relief to distributors aimed at helping small and medium business focused partners. Those initiatives include suspending or significantly reducing strategic development initiative targets and providing extended payment and early payment discount terms. Those cash relief offers run from May 1 to July 31.
HPE Worldwide Channel Chief Paul Hunter told CRN USA that the changes are aimed at helping partners get through the pandemic in good financial shape. “We’re looking to support and help our partners and make sure we are really cultivating a vibrant partner ecosystem,” he said. “If we want partners to succeed in the long term we have to invest in the short term.”
The “significant” investments HPE has made in the coronavirus relief effort for partners required “incremental investment” from HPE, said Hunter. “This is one of the times when it makes a big difference to be working with a company that is built on a solid financial foundation,” he said. “We have had support from (HPE CEO) Antonio (Neri), our CFO Tarek Robbiati and our (Hybrid IT) President Phil Davis to make additional investments in Q3 to help improve the liquidity of our distributors. That allows them to help our small partners who I think are the most vulnerable. Just as with the US economy small businesses are more vulnerable than the really big, well financed businesses….The small partner base is very important to us.”
In a blog post, Hunter said HPE is taking action to “relieve financial pressure for all our partners” and at the same time “mobilizing the full weight of its resources” to help customers. He told CRN that the “rallying cry” as HPE tackles the partner financial challenges surrounding the coronavirus pandemic is to be “flexible” and adjust to the new normal. “We will come out of this as better, healthier, stronger companies,” said Hunter. “The fittest will continue to prosper. This will make us a better company and it will make our partners better.”