What Partners Need to Know About HP, Inc.
A resurgent HP, Inc. wants the channel to transform. Instead of focusing on transactional sales, HP is now encouraging partners to establish more contractual relationships with customers that deliver IT as a service.
HP, Inc. grew revenues 11 percent in the third quarter year over year. Personal Systems net revenue was up 12 percent year over year. Total units were up 7 percent with notebooks units up 12 percent and desktops units down 3 percent. Printing net revenue was up 6 percent year over year. HP’s printer business also grew in the last two quarters for the first time in years. HP generated $1.7 billion in free cash flow for the quarter.
HP paid out over $1 billion to partners last year. In addition, HP has trained over 15,000 account managers and certified engineers. HP has 200,000 global partners. HP says about two-thirds of the partners are actively participating in driving new revenue streams.
HP is investing in sales training to enable partners to sell contractual services ranging from a HP device-as-a-service (DaaS) offering to traditional managed print services. HP expects partners will use market development funds to pay for training.
DaaS has been forecasted to be a $10 billion market by 2022. HP already has 600 partners participating in reselling its DaaS offering, which today spans Windows, Apple iOS and Google Android devices. Additional operating systems will be added in the future.
HP sees a significant opportunity in 2018 to transform the office experience using software applications such as HP PhoneWise, an application that allows mobile text messages sent to a smartphone to appear on a PC screen, and HP Roam, a mobile application that enables end users to print almost anywhere they are authorized.
HP in 2018 views offerings such as the VR Backpack as an opportunity to drive up usage of higher-end notebooks, desktops and workstations across several vertical industries.
HP says requests for quotes from customers increasingly include a requirement to build security software into the device. HP includes its own secure BIOS with its PCs and is expecting partners to increase the number of security certifications they hold.
Most existing HP partners don’t have the expertise required to sell 3D printers as a manufacturing alternative to injection molding. HP is actively recruiting new channel partners to resell its 3D printers.