HP Must Prove Stability to Partners

Hewlett-Packard is gearing up for its annual Global Partner Conference in Las Vegas with a series of new product releases and channel initiatives. Not on the agenda is HP renovation project and how it will restore confidence in the eyes of partners and customers.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

In two weeks Hewlett-Packard Co.’s channel will descent upon the Las Vegas strip for the annual Global Partner Conference for three days of product announcements, technology innovation briefings and overviews of new channel initiatives.

What’s not on the official agenda is how HP will finally lay to rest rumors and speculation about its future. It’s an issue HP must address to partners, who are persistently being asked by customers and prospects about what comes next for the IT giant given its performance and struggling recovery effort.

Related articles

HP got hit again with speculation about its future when reports surfaced the day after Dell’s leveraged buyout that its board was considering breaking up the company. The underlying rationale: HP’s components – its operating divisions – are worth more to shareholders in a spinoff or sale than the $33 billion market cap current set by Wall Street.

The actual details of the latest HP breakup news remain unclear. Some analyst believe HP is considering all options to revitalize the company amid its operational challenges, changing market dynamics and years of poor management. CEO Meg Whitman is on record believing that HP’s success will requires the company staying whole.

In recent Securities and Exchange Commission filings, HP noted that it was considering selling underperforming or strategically unimportant assets as part of its recovery. The market and channel took that to mean a break up was imminent; Whitman soon after dismissed the interpretations saying HP is stronger as is.

Some analysts speculate the Dell going private is putting pressure on HP to revive shareholder value. While HP stock is trading up, its value remains one-third of its gross revenue and it’s seeing sales fall in nearly every major product category, not just PCs. Additionally, HP missed the entire tablet and smartphone revolution; while it has products coming out, most are designed for Windows 8 and Windows Phone 8, which haven’t proven significant market drivers.

Few believe HP will go the way of Dell, in seeking a leverage buyout and taking the company off the market. However, the market’s reaction to renewed rumors of a breakup – mostly positive – shows the wisdom of Dell’s decision. Rather than trying to satisfy Wall Street while rebuilding for the future, Dell chose one over the other and booted the investors out.

Are HP products competitive? Yes. Is HP’s channel program good? For the most part, HP has a mature channel program. Is HP investing in its future? HP says it’s increasing R&D spending; a new analysis says HP’s research spending is about $1 billion less than what competitors invest. Will HP eventually recover? Well, that’s debatable, and that’s what’s keeping partners and customers on edge.

HP partners tell Channelnomics that they’re seeing ample internal instability at HP, which is affecting their ability to take their products to market or coordinate activities. Simultaneously,  HP’s competitors are stepping up displacement and disruption campaigns, looking to capitalize on HP’s missteps and follies.

No one expects HP to solve all its problems overnight. In fact, the channel has waited 18 months so far, and has seen signs of improvement since Whitman took the helm. However, HP has a tendency of opening healing wounds or allowing others to tell their story. At the Global Partner Conference, HP should be the one to tell its rebirth story to solution providers and let them carry it to the field.

 

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Channel Business
wires

HP to focus on wired, wireless to take market share from Cisco

Meg Whitman says there is opportunity to capture Cisco-dominated market

failure2

If at first, you don’t succeed...

The road to success is paved with obstacles, potholes and yes, failure. The secret is to learn from our mistakes and keep walking

Cloud jigsaw

Cloud repatriation the future of IT - Dell

Blog says trend is significant for the present and future

light-through-cloud

Economic cloud has silver lining

Solution providers need not cave to the doom and gloom of economic forecasts; they should make a plan and forge ahead instead

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
Web design

Your just-right website: Art, Science and a little je ne sais quoi

Follow these rules for an online presence that’s visually appealing, content-rich and easy to navigate

richard-hutton-samsung

Vendor Q&A Series: Richard Hutton, Samsung

The latest channel exec to sit in the Channelnomics hotseat is Samsung's director of channel marketing for the Enterprise Business Division of Samsung Electronics America

failure2

If at first, you don’t succeed...

The road to success is paved with obstacles, potholes and yes, failure. The secret is to learn from our mistakes and keep walking

isolated-ignored-business

Vendor agenda: Resellers may find themselves out of the loop when vendors merge

In part two of our two-part series, this month we take a look at what resellers can expect to face when their vendor is involved in an M&A