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HP hikes its channel vs direct sale ratio for OpenView
 
Company would recruit around 20 tier-2 SIs for selling its OpenView across major cities and increase its channel sales contribution to 70% over next three years
 
CYBERMEDIA NEWS
 
Friday, July 09, 2004

 

In a bid to tap a larger customer base as well as a high business potential in the SMB segment, HP India is increasing the share of channel sales to its OpenView business. Until about four years ago channel to direct sale ratio stood at 30:70. Currently, the company is doing about 55% business through its partners and if the officials at its Software Global Business Unit (SGBU) are to be believed, channel sales would contribute over 70% to this business. Currently, India is the fastest growing market for HP worldwide as far as its software products are concerned.

“Looking ahead we want to aggressively tap the huge SMB segment in the country and our partners will play a key role in helping us achieve the same,” remarks Amit Chatterjee, Country Sales Manager, SGBU, HP India. Currently SMBs bring about 10% of business for HP SGBU’s Indian operations. 

He further adds that the company would shortly begin recruitment of many tier-2 SI partners across top 8-10 cities. “We are looking at tying up with about 20-25 partners across these cities in the near future for offering the OpenView solutions,” he informs. HP is also doing modifications in its OpenView range of software to suit the needs of the SMB segment. “Internally referred as OpenView Sachet, it would provide SMBs a far more modular and cost-effective software solution for network and systems management,” shares Amit. The company is even looking at organizing a summit for channel partners selling its software products. 

HP has also launched three different kind of productized support services: Pro-active support, On-site support and Upgrade/migration services. However, when asked if this would deplete partner’s service revenue, company’s worldwide VP for software sales, Peter Vander Fluit clarifies, “The biggest chunk of revenue comes from implementation services, which would continue to remain with partners. Also partners would be playing a significant role as far these service deliveries are concerned.”

GOLDIE

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