Hewlett Packard Enterprise is implementing new terms and conditions on pay-per-use GreenLake deals that limit partner liability if a customer stops paying or defaults on a multiyear agreement.
“We’ll essentially limit their risk,” said HPE worldwide channel chief Paul Hunter, speaking about the upcoming changes to the GreenLake channel terms for partners. “There needs to be a time period where if the customer has not been consistently paying the partner, we will take responsibility for ensuring we get payment from the customer. That way the partner exposure is limited.”
Hunter said the precise changes on the terms and conditions aimed at limiting partner “risk” are still being finalised. “We are still working on the exact wording on what the new clause will be,” he said.
HPE is structuring the GreenLake terms so that if there is there is any “variability in the payments that come from the customer to the partner” then the risk is limited for partners, said Hunter.
The change comes with HPE GreenLake just completing its fourth consecutive quarter of year-over-year triple-digit sales growth through partners.
HPE — which has been providing flexible multiyear pay-per-use deals for close to a decade — has not had a single customer default on a GreenLake deal, said Hunter.
“We have a big data set that says none of our customers have defaulted on payment,” Hunter said. “The likelihood of it happening is very small. That said, it is still a possibility and therefore a partner would have to consider it. If it happened to one and they are liable for the contract value and they are small, that is a big burden. That is why we have made the decision with feedback from the partners.”
Partners, for their part, said the change directly addresses any and all concerns on partner liability and liquidity in a GreenLake deal.