Channels in India Unperturbed by the HP Split
In a complete interface after HP split last October, Rajiv Srivastava, vice president and general manager, PPS, HP India, spoke about the strategy for channels in India. “Going forward, it continues exactly the same way. At the operational level, there will not be much difference in the way the interactions work in the channel ecosystem,” he said.
He had also added that partner administration was managed in consolidated way, including the partner portal and other administrative policies. “We will separate the two policies but still continue with a common framework of policies. HP Unison program for partners will continue as there will be one for PPS and one for EG,” he said in October.
Going forward, he says, there will be two main differences that will unfold for channels. The PPS division will have individual funds to manage the partners and channels can expect increased funds for market development activities, he said. “Since the two divisions have split formally, both teams have their own business and hence they can put more people to manage their partner sets,” says Srivastava.
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HP has over 750 PPS partners in the commercial space which are managed by HP–at the regional level–across 20-odd Indian cities. “That elaborate structure will continue. We will continue to add more people as we are on an expansion spree. The focus on partners will continue with more emphasis to reach more locations,” he says.
The Global PC market is shrinking with single digit growth since the past two years, according to analysts. So, what’s the next big opportunity for PC channels? “It is not about consuming only desktops and laptops. The global device consumption is increasing to a large extent. HP has to manage different devices (beyond laptops and desktops) to keep our revenues up and provide newer opportunities for channels.
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The Indian market is bound to grow in many directions but there are two to three potential verticals for channels, according to Srivastava.
“The transformation of the education sector is a big opportunity for all kinds of devices. It is an extremely device-intense market which has content and applications. And that’s where HP PPS has a strong play,” he adds.
Another source of business for channels is SMBs. According to Srivastava, many SMBs are coming up and with smart cities, SMBs are big IT spenders. Apart from that, there are sectors that offer great opportunity for channels. “BFSI, manufacturing and other enterprise segments will continue to spend on IT. And the last big space for channels is the government segment, which will be catalyzed by Digital India,” says Srivastava.
HP does recognize the fact that the separation might inflict some anxiety among channels. “Hence, we are being doubly sure that we reach both sets of partners (PPS and EG) to make them understand this new strategy. Most partners do realize that we worked as separate entities before the formal split was announced and hence they continue their trust in us,” he says.