HP has redrawn its distribution landscape, adding Avnet Partner Solutions and confirming it will part ways with both Digiland and eXeed. The new distribution line-up will be effective from November 1.
HP’s Personal Systems Group vice-president, Tony Bill, said the company’s review of distribution had been aimed at finding new business for HP and its partners, and improving profitability in the channel.
With the market “fundamentally flat”, Bill said one of the main criteria in assessing current and potential partners had been “the ability of the distribution partner to drive and sustain growth”.
HP’s aggressive growth strategy would involve taking business away from the competition “be that Dell or the whitebox segment”, Bill said.
Avnet Partner Solutions has been added to HP’s line-up of distributors for high-end systems, joining Express Data. Avnet will distribute HP’s UNIX products, top-end Intel-based products and high-end storage products.
The addition of Avnet to the HP ranks echoes the relationship the two companies have in the US.
Avnet had demonstrated it could do a similar job in the local market, and HP had been satisfied it wouldn’t overlap with the Unix business already catered to by Express Data, Bill said.
While both Digiland and eXeed had been considered as part of the distribution review their changing business models had led to the split, he said. The dropping of HP’s business had been foreshadowed by both distributors.
The rest of HP’s distribution channel stays the same. Ingram Micro, Tech Pacific and Dicker Data will tend to broadline distribution, Lynx Technologies looks after storage, and Synnex is responsible for the full range of image and printing group products.
By moving forward with three broadbased distributors, HP had addressed the profitability of its channel, Bill said. “By reducing to three players, there’s an option for the final tier reseller, but not saturation of the market.”