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EG Channels Overview. Jesse Chavez VP, EG WW Channels October 25, 2013. HP Channels: We have a big channel – and big responsibility. 40 + years – Channel is in our DNA. More than 145,000 partner businesses More than 500,000 partner sales professionals
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EG Channels Overview Jesse Chavez VP, EG WW Channels October 25, 2013
HP Channels: We have a big channel – and big responsibility 40 + years – Channel is in our DNA • More than 145,000 partner businesses • More than 500,000 partner sales professionals • $1.4 billion+ in channel investment (FY12) • Partners in 173 countries • 3,500+ Specialist partners • Dedicated HP channel sales organization • Dedicated HP channel marketing organization • Significant partner management operations investments
Channel partners play a critical role in HP’s reach and success Market Reach Customer Preference Scale & Flexibility • Partners provide: • Geographical reach • Strategic customer segment reach; market access • Long term trusted relationships with customers • Multiple business models • Partners offer: • Services and products that complement HP’s offering • Customized guidance through the buying process • Customer preferred buying models (location and occasion) • Partners perform: • Order management • Financing • Inventory holding • Fulfillment • Value add services (integration, solutions, Mgd. services, support etc.) 2
67% of HP’s overall WW enterprise business is channel driven APJ$4.1B HP REVENUE AMS $4.5B HP REVENUE • EMEA$5.1BHP REVENUE 80% CHANNEL DRIVEN 57% CHANNEL DRIVEN 70% CHANNEL DRIVEN ~20,000 TOTAL PARTNERS ~15,000 TOTAL PARTNERS ~60,000 TOTAL PARTNERS Notes: Enterprise revenue based on FY12 data. Total partner count includes resellers and distributors
Our channel partners play a role in covering all key customer segments with HP Market Segmentation • Around 67% EG revenue driven through channel partners • Balanced/clear rules of engagement • Direct/Indirect compensation neutral • HP-led coverage with joint account planning for largest global accounts • Channel-led coverage across SMB, commercial and public sector accounts GA Selected Accounts EG GTM Direct C&P All accounts not GA and not SMB SMB Accounts with less than 1000 employees Channel
Our immediate channel priorities for FY14 Renewed senior leadership commitment to Indirect Channel Flawless execution of new PartnerOne program • Channel-ready Solutions for hottest markets Clear rules of HP/Channel field engagement
In FY14, we’re making key changes in PartnerOne to help you grow Top 5 benefits of program enhancements starting November 1 Intuitive membership structure New four-tier system with increasing reward levels Predictable compensation No gates, no caps and double-digit rebates New specializations in key growth areas Cloud, Big Data, Networking, Services New tools to accelerate your SMB businessSolution blocks, technical briefs, configuration and order templates Streamlined certification requirements Optimal skills to effectively architect customer solutions • Predictable • Simple PartnerOne Profitable
HP ServiceOne partner programs accelerate growth Your best opportunity to increase deal size and gain higher margins Attach Consulting Renew
It will be a hybrid world BuildCloud services ConsumeCloud services Managed Cloud Public Cloud Private Cloud Traditional SLAs availability, security, performance, compliance, cost
HP Cloud Programs for Partners Designed to give you flexibility in delivering Converged Cloud solutions Cloud Builder Cloud Provider Cloud Reseller HP Cloud Builder Specialists deliver on-premiseprivate cloud solutions to end-user customers HP CloudAgile partners deliver off-premise cloud services (IaaS, PaaS, SaaS) to end-user customers • HP Resellers selling cloud services from HP or CloudAgile partners to end-user customers
Vision: HP is channel vendor of choice for the new style of ITPan-HP Channel framework and rallying cry PREDICTABLE SIMPLE PROFITABLE FAST • Joint Business Plans with Top Partners • Executive Sponsor Program Interlocked business strategies • Reseller PartnerOne Program Redesign • Distributor Compensation • MDF optimization Enabled by a best-in-class partner program • Pricing/Quote TAT (incl, deal registration) • Partner Portal Supported by frictionless operational processes • Field engagement model (Co-selling MOC, Rules-of-engagement) • PBM up-skilling & up-leveling With consistent, high value HP engagement • Channel Ready Plays (Right Product/Price/Place/Promotions) • Demand Generation Bringing the best offerings and innovations for the new style of IT
HP Converged Cloud: Our Vision Build & OperateCloud Services Consume Cloud Services Hardware Software Services Managed Cloud Public Cloud Choice Confidence Consistency Delivery model Platform Partner Architecture Portability Consumption Security Management Scalability
Introducing new specializations in key growth areas New New New New New New New New Cloud Partner Solution Navigator to find HP Cloud Builder Specialists and CloudAgile Service Providers
Observations on channel future– success factors Observations & Learnings • Complete HP certifications: it has a direct impact on sales productivity • Build a brand for yourself • .. Example of successful partnership Differences between EMEA and US/APJ partners
5. Streamlined certification requirements Optimal skills to effectively architect customer solutions Storage MASE requirements 50% reduction Server ATP examrequirements 80% reduction Clear correlation between number of certified individuals and revenue Gold server specialists Gold storagespecialists
1. Intuitive membership structure New platinum level to reward HP’s top partners Converged Infrastructure Software Printing & Computing Systems PlatinumPartner PlatinumPartner PlatinumPartner GoldPartner Example GoldPartner Simplified membership insignia so customers can easily identify partners who are committed to HP Gold specializations: Storage Autonomy Document Solutions Silver specializations: Networking TippingPoint SilverPartner BusinessPartner Plus: Simplified partner locator and active promotion of Platinum/Gold Partners in HP marketing campaigns
Our Unison platform makes it easy for our partners (and customers) to interact and do business with HP Planning & enablement Profiling & onboarding PersonalizedExperience Business planning & support Market development funds Customers Collaboration Sales & fulfillment Partner Sales Deal registration Portal Lead management Configure, price & quote HP Sales Partner Business Manager Mobile Order fulfillment & invoicing Performance & compensation Social Partner compensation Rebates & claims Performance review Business intelligence
PartnerOne provides partner benefits based on membership levels and value to HP and its customers Benefits Membership levels Platinum
Select channel plays/ solutions ISS HPN Conv. Systems TS HPSD ITaaS3PAR One Tier-1 Arch: Midrange, All-Flash, & Ent. Scale • 3 Moonshot Less space, energy, cost & complexity Portfolio Expansion Datacenter Care & Proactive Care Channel Delivery enablement StoreVirtual VSA Configurable Solution Public & Private Cloud SDN & Utility Model Conv. System 700 Blade Ecosystem of Channel Enabled Solutions BackupManaged Backup w/ StoreOnce BURAStoreOnce Federated Dedupe from Small Site to Datacenter MSR Routers SDN & NFV-enabled Low-Cost High-Performance Datacenter Care Blade System & Fusion Management for Conv. Infr. Foundation Care Proactive Care Unified Wired/WLAN IMC smart connect WLAN new controllers and Switching Conv. System 300 Rack Ecosystem of Channel Enabled Solutions ITaaS/SaaS3PAR & VSA Simply StoreIT Stress-free storage for virt., apps, files, & data protection C&P • 2 NetworkIT Mobility/BYOD secure and unified access Pre-Configured Solution S1 for Dist. Increase delivery capacity, coverage & competency through distribution ServeIT Pre-Defined VMWare Vsphere Solution ServiceIT SMB holistic services solution OfficeConnect Small business solutions • 1 Transactional SmartBuy