Hewlett Packard Enterprise is doubling down on both its GreenLake pay-per-use offering and on capturing a bigger slice of the SMB pie in fiscal year 2020.
On the GreenLake front, HPE is keeping GreenLake sales compensation at the top of the pyramid with its 17 percent up-front rebate.
HPE also is doubling the number of sales specialists focused on helping partners close GreenLake pay-per-use deals; rolling out a GreenLake Quick Quote tool that dramatically reduces the time it takes to do sales quotes from days to minutes; and introducing a new GreenLake competency.
On the SMB front, HPE is adding new sales resources, including an expanded inside sales team, and has instituted a new instant pricing model for SMB partners for deals priced under US$100,000.
“We continue to have the most attractive program in the marketplace,” said HPE Vice President of Worldwide Partner Programs and Operations Jesse Chavez in an interview with CRN. “GreenLake and SMB are the biggest opportunities in fiscal year 2020. I think that is where we will see the growth. The overall margin profile is going to be higher in those particular areas.”
HPE has doubled the number of sales specialists focused on helping partners close GreenLake pay-per-use deals in fiscal year 2020, which began Nov. 1.
HPE also has added a GreenLake Quick Quote tool aimed at accelerating the time it takes for partners to provide a quote to just minutes on what are more often than not custom quotes for the GreenLake offerings. The Quick Quote tool officially rolled out Nov. 1.
In addition, HPE has decided to maintain its robust 17 percent up-front rebate, which has helped drive triple-digit GreenLake sales growth in the channel. “The call to action is GreenLake first and foremost,” said Chavez.
“We have no intention of touching that 17 percent [rebate incentive],” he said. “Partners were thinking that we would do that for a year and then downgrade that compensation. We decided not to do that. We are on a significant upturn right now. … Everybody likes the 17 percent. It grabs their attention.”
That 17 percent rebate allows the partner sales reps to be fully compensated up front on the multi-year GreenLake deals just as if it were a traditional big budget capital expenditure IT purchase. Another key to GreenLake sales growth: the ability for partners to add their own managed services to the GreenLake offers.
GreenLake has the highest 5X multiplier in the HPE partner compensation incentive program. In addition, the GreenLake business is growing at over 300 percent in the channel with 500 partners actively pursuing deals in the pipeline.
“The channel is a big part of GreenLake so we see the percentage mix of GreenLake growing higher in the channel than it is direct,” said Chavez.
“HPE GreenLake is an exciting solution for us. I can now differentiate the solutions that I'm selling to my clients by being able to provide clients with a flexible model when we look at their infrastructure,” said Xara Tran, CEO & Chairman of Australian HPE partner, Champions of Change. “HPE GreenLake allows us to have ongoing conversations with the clients we work with and play important roles in their digital transformation journey. We’re not just a transactional reseller; we’ve become a fully integrated technology partner.”
HPE has added a GreenLake competency certification along with Partner Ready accelerators aimed at getting more Silver and Gold partners to sell GreenLake, said Eric Loe, senior director of the HPE Partner Ready program and channel go to market.
Under the Accelerator program, Silver and Gold partners can reduce their minimum revenue requirement by 10 percent to 30 percent by investing in new certifications like the GreenLake competency, said Loe.
Partners are embracing the GreenLake competency as a way to drive business outcome/line-of-business conversations with customers, said Loe.
“We’re seeing a big uptake for our Silver and Gold partners around competencies, and GreenLake is the top dog there,” he said.
The competency accelerators for Silver and Gold open the door for HPE to do more lead sharing and co-selling with those partners.
HPE is also rolling out Transformation Workshops aimed at educating partners on how to sell GreenLake as a subscription pay-per-use offering versus a traditional capital expenditure technology solution.
HPE Pointnext Is Moving Into Business Units
HPE’s Pointnext services organization is being embedded into HPE’s Hybrid IT Organization in the form of Pointnext Compute, Pointnext Specialized Compute, Pointnext Storage and Pointnext Advanced Professional Services.
“It’s not a separate organization—it’s embedded into the business units as we go forward,” said Chavez. “This is a reporting structure where you will see the offers embedded into compute, specialized compute, storage and professional services.”
Besides moving Pointnext into the business unit, HPE is moving toward a single global Pointnext Partner Ready program. HPE has already moved from eight to four programs around the globe and expects to get to one program by fiscal year 2021.
“We’re simplifying the program, making sure we have the right metrics,” said Chavez.
HPE is keeping the same 1X, 3X, 5X compensation multiplier metrics, paying the highest 5X commission for selling HPE GreenLake and the HPE OneView and OneSphere software-defined foundation.
“We made some pretty large changes to the program in fiscal year 2019; our intention this year was to just add some elements to it instead of redoing the entire program,” said Chavez. “We are keeping the 1X, 3X and 5X multipliers. … At the end of the day, you get a larger multiplier if the margin is richer. As you move up from the 1X category, it is more margin accretive.”
GreenLake and software like OneView and OneSphere are at the top of the pyramid with a 5X multiplier.
Storage including Primera, 3Par, Nimble, SimpliVity and dHCI all fall into the 3X multiplier category.
The 1X multiplier category is reserved for volume products like HPE Gen10 servers.
HPE is also keeping the same revenue commitments for Platinum, Gold and Silver partners.
HPE is also investing more in building out its Tech Pro community as part of a stepped-up charge to get more top-tier technical talent focused on HPE products and services.
That includes new rewards that incent partners for climbing higher up the Tech Pro community technical ladder as well as access to specialized information labs, said Chavez.
HPE’s aim is to build out a network of tens of thousands of elite partner solution architects through its Tech Pro Community, which includes partner solution architects working with HPE solution architects in a single community.
HPE is heading into the new fiscal year 2020 maintaining its $1 billion investment in partner incentives including market development funds in the HPE Partner Ready program, said Chavez.
HPE’s most recent Partner Survey gave it the highest score on profitability versus competitors. “We pride ourselves on being the most profitable program,” he said.
Key to that profitability focus is making sure the program remains predictable for partners, said Chavez.
“We wanted to continue to be predictable, and that’s what we’re doing with the new program going into next year,” he said. “There might not be all these exciting changes, but predictability was our key focus, knowing that when we designed the fiscal year 2019 program fiscal year 2020 was probably not going to be as significant a change.”