HP overhauls services partner schemes following complaints

HP has overhauled its services partner programmes in response to partner complaints about the metrics used to calculate sales rebates. From this month, Specialist Contract Services (SCS) resellers can accrue back-end margin on sales whereas previously only Authorised Service Partners that shipped 2

HP has overhauled its services partner programmes in response to partner complaints about the metrics used to calculate sales rebates.

From this month, Specialist Contract Services (SCS) resellers can accrue back-end margin on sales whereas previously only Authorised Service Partners that shipped 20% more Care Packs than the UK channel average qualified for rebates.

A number of very large ASPs were kicked off the rebate programme at the end of the last quarter because they failed to meet the agreed services to hardware attach ratio and some have voiced frustration with HP's measurements.

"The bigger you are, the more impossible the programme becomes because what it asks is that you sell 20% more than the market but what if you are one quarter of the market," one disgruntled ASP pointed out.

Others claimed that corporate customers did not buy warranty services with hardware but preferred to procure managed services separately as part of an outsourcing contract.

"Care Packs should be a segment of your attach percentage and volume deals should be excluded," said another ASP. 

Nick Shuttleworth, HP channel services manager, conceded the rebate scheme was geared around Care Packs which did not consider the different customer types that partners served.

"Historically we have said to partners, here is a rebate scheme around the sale of packaged services but a number of them have customers that don't want to buy Care Packs so we've added SCS into the services rebate scheme," he said. 

"As long as you are selling an HP service - packaged or contracted - and meeting the criteria at the right services to hardware ratio, you will get the programme benefits," he added.

Shuttleworth refused to comment on the number of ASPs that did not qualify for rebates in HP's fiscal Q1, which started on 1 November, but added that they are free to rejoin the scheme at a later date.

The addition of rebates to the SCS scheme should help HP recruit resellers, it is looking to more than treble the number of partners that take its contracted services to market.

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