Hurd on the Channel StreetBy Michael Vizard | Posted 2008-02-26 Email Print
At HP's partner conference, HP CEO Mark Hurd said he will help VARs make more sales, as the vendor hits the realization that it "has to win in the U.S."
Although Hewlett-Packard at the moment is riding high thanks to strong
international and consumer sales, company Chairman and
According to Hurd, about 69 percent of the company's sales are generated from overseas markets. And of the remaining 31 percent, a huge percentage of those sales in the United States come from consumer PC and printer sales, which means that sales of enterprise computing products in the United States is a relatively small percentage of the company's overall business.
Hurd acknowledged this state of affairs during his keynote speech at the
partner conference being held in Las Vegas Feb. 25-28 by imploring the company's channel partners to expand HP's
reach, particularly in the SMB (small and midsize business) market in the
This double whammy creates an extremely difficult scenario for HP, which is
relying on channel partners to grow its share of the enterprise computing
market in the face of tough competition from not only
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Hurd seemed to acknowledge all this by tempering his usually tough talk about partner loyalty. While he stressed that HP still prefers to do business with partners that attach a lot of HP products to any given solution, he was more conciliatory to solution providers that found it prudent to sell products from other vendors alongside HP products.
Nevertheless, Hurd said he will continue to bristle over the issue of solution providers choosing to sell HP products at a loss as part of an overall solution that includes third-party products sold at a higher margin at the expense of comparable HP products.