Resellers report 3000 division surveys them, plans to drop
some
Longtime HP e3000 hardware outlets in the authorized
channel are having to prove theyre worthy of retaining reseller
status this month, according to reports from integrators selling
3000s for HP.
Several companies with years of experience selling the
3000 report that in April HP sent an extensive survey investigating
each resellers hardware sales and marketing strategies. The
survey is part of HPs re-evaluation of the channel, the
resellers report information they believe HPs Commercial
Systems Division (CSY) will use to decide who gets to sell HP 3000s
in the coming year.
HP
did not want to comment for this story, and a spokesperson said the
division might be willing to discuss the matter only after the end of
May. Current hardware reseller contracts come up for renewal on May
31. Client Systems, the North American distributor for HPs
e3000 business, also declined to comment. Client Systems chief
operating officer Mike Murphy outlined the plan, which HP is calling
the rationalization of its 3000 channel, at its worldwide
resellers conference in April.
Several resellers report they have been told HPs aim
is to reduce the number of authorized outlets to buy e3000 hardware.
One said the plan involves making a sharp reduction in the number of
integration resellers, those which do not offer software or an
application for the system sold along with hardware.
One reseller who didnt want to be named every
resellers contract is being evaluated this month said he
had been told HP wanted to reduce the number of integrator resellers
by 90 percent, or fewer than five North American outlets. Some
resellers report CSY will cut off the resellers who booked less than
$500,000 in sales during the past year.
Last year was not a good year for anybody,
said one reseller who was fairly certain they wouldnt make
CSYs cut. There is pressure being put on HP to put the
little guys out of the loop. But the little guys know the little
accounts.
HP
relies on its resellers for 80 percent of its sales, according to HP
Services Solutions president Nick Earle. The percentage is even
higher for the e3000, which is still working to regain the attention
of the internal HP sales force.
The single complaint I hear from every customer we
go to is that they havent seen anybody from HP in years,
the reseller said. They dont even know who their
salesperson is anymore. Well keep calling on these people,
because we know who they are. I cant see anything happening
here but this being a real detriment to HP.
Even companies who sell a large amount of hardware and do
a small percentage of HP 3000 business may be cut out. Meanwhile,
software providers who have sold hardware for years might be losing
the ability to sell e3000s as part of their solution. CSY has been on
a campaign to get ISVs to use the hardware services of regional
integrators such as Logical and Forsythe. But some resellers believe
relationships with 3000 customers arent so easily
transferred.
There are a lot of us out here with customers who
have turned to us for many years for expertise, another
reseller said. Were not doing huge volumes, but these
customers exist on the 3000 largely because were supporting
them. You take us away, and they may not stick on the
3000.