HP puts ESS distributors under the spotlight

Hewlett-Packard has put its Enterprise Server and Storage distributors on a beauty parade to review their business plans for next fiscal year and ascertain ways of improving UK sales, particularly in the Business Critical Server division.

Hewlett-Packard has put its Enterprise Server and Storage distributors on a beauty parade to review their business plans for next fiscal year and ascertain ways of improving UK sales, particularly in the Business Critical Server division.

The suspected upshot is that from 1 November, DNS Arrow - which only has the value contract for the StorageWorks division (SWd) - will get access to Industry Standard Servers (ISS) and BCS platforms in the ESS business unit.

"HP is trying to get closer to distributors to understand why the BCS market is underperforming," said one source close to the vendor.

Other distributors include ETC, which holds the SWd exhibit, Bell Microproducts and CCD carry the entire ESS value range while Computer 2000 and Westcoast hold a volume ESS contract.

It is "unlikely" any distributors will be dropped said another channel confidant who added, "Like other vendors, HP is under pressure to make sure it is getting the most out of partners."

HP declined to an interview but sent a statement to MicroScope: "HP is unable to comment on specific relationships with its distributors.

"In line with our strong commitment to the channel, we continually review our relationships with resellers and distributors to ensure that they are mutually productive and profitable for all parties," it added.

In its fiscal second quarter, HP saw sales in the ESS business unit fall to $3.45bn compared to $4.7bn a year earlier.

DNS Arrow was unavailable to comment.

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