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HP Inc. 1 Year Post-Split: Partners Drive 87% of Revenue

By James Anderson
November 08, 2016 - Article

James AndersonHP Inc. says its channel partners are doing well after it and Hewlett Packard Enterprise split off from their parent company.

The two companies officially split from HP a year ago, with HPE focusing on software, storage, servers and networking and HP Inc. focusing on PCs and printing.

Thomas Jensen, vice president of channel sales strategy for HP Inc., says his company transferred 3,000 direct customers to its partners as a part of an effort to be “channel-driven."

Jensen chatted with Channel Partners about the past year for HP Inc.’s Partner First program and its future. The transcript has been edited for length and clarity.

Channel Partners: What have the major changes been for HP partners since the split?

HP's Thomas JensenThomas Jensen: I think first and foremost, since the separation on Nov. 1 last year, our partners have seen an HP that is much more agile, nimble and focused, much more dedicated to the channel than we have before, which is something we don’t take lightly because we’ve always been a channel-driven company. So when we go out and take pride in saying, “We’re more channel-driven than ever before," we put some weight behind those words.

One of the things that we’ve done is, very early on we sent out a message to our partners that we were restructuring the way we work with the customers [with whom] we had direct business and essentially moved a great proportion of that so by the end of our currently finished fiscal year, we are now conducting more than 87 percent of our revenue through our channel partners, which is a testament to the fact that we are actually driving more business through the channel, and we envision to see this number rising. On top of that, we have restructured our partner program so that it’s more intuitive and more simple to do business with us, and generally put a lot of effort behind being focused on the partners. And we tend to brand ourselves after the separation as a Fortune 100 with the muscle and brain of Fortune 100 company but the heart and vision and energy of a startup.

CP: Since the split, what have partners been telling you about their experience with the Partner First program?

TJ: First and foremost, let me start by telling you what they told us around the split. What they told us was, “It seems like you haven’t separated, in the sense that it was a non-event for us. We didn’t notice it." Which I think is the greatest compliment that we could ever get, because our core objective was to ensure that we had as little disruption for our partners as possible. So when they tell us that it was a non-event, that was the biggest compliment we could get around the preparation work that we’ve done in the year leading up to the separation. Then once you’re past the separation, you move to business as usual, and what we’ve heard there is that ...

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