HP resellers forced to change

HP resellers forced to change

The launch last week of Hewlett-Packard's e-services initiatives, fuelled by interest in Apps-On-Taps, is to change the way the channel does business with HP and their customers.

The future, as Hewlett-Packard sees it, involves a gradual shift away from product selling to service providing through Apps-on-Taps with customers accessing the Internet via their mobile appliances and not necessarily PCs.

HP's new concentration on services, rather than product volume, has forced many resellers reliant on traditional sales to re-evaluate their strategies for an Internet environment, a new offering and with different remuneration options.

The Australian marketing manager for Hewlett-Packard's Enterprise Systems Group, David Lenz, said that with its new business model, "Hewlett-Packard will change the way resellers are remunerated to payment by annuity. Hewlett-Packard is forward-capitalising our partners so we share the risk and the rewards."

According to Lenz: "We will of course continue to support those resellers who sell on price and quantity like the Unix sellers. What we're doing is enhancing the reseller's portfolio by giving it an opportunity to provide customers with an Apps-on-Taps service."

Appearing in Australia after a May international launch, the new services will encompass consulting, enterprise application integration, application utilities, financial offerings, software solutions and software models, under the umbrella of a newly developed e-services division.

The service offering is underpinned by new technology called e-Speak that allows businesses to rent applications on a pay-as-you-use basis. Instead of customers trawling the Net for products or services, Hewlett-Packard's new technology does it for them. "HP's e-Speak, the language of e-services, is the tool that will enable various e-services to interact with each other in this new global marketplace," said Nick Earle, HP's senior vice president and chief marketing officer, enterprise computing.

According to Earle, these initiatives were prompted by the onset of what he terms "Chapter Two of the Internet. It is here and it's powered by three trends: apps-on-taps, next-generation portals and brokerage of services," he said.

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