HP Comes on Strong: Cisco Better Watch it!
HP (NYSE: HPQ) has made it clear; its sights are set on dominating the datacenter. Cisco better watch it! Addressing partners in the XChange spotlight, Adrian Jones was clear about HP's goals and the channel's role in meeting them.
HP is determined to go after Cisco's market share, and the latest channel investments show it means business. So, HP is doubling down on its channel investment; it spent $550 Million in MDF for PartnerOne partners. The incentives have been even richer for the Procurve networking product line; those who win over competitive accounts will enjoy tripple the benefits. Bravo, HP, for aligning product portfolio strategy with channel incentives! Obviously this move is meant to strike at the heart of Cisco's market.
What's the channel's reaction? One HP reseller has commented:
Not to be outdone, Cisco's (NasdaqGS:CSCO) Surinder Brar recently reminded partners on the Cisco blog that the company has paid out significant VIP incentives over the last six and a half years and has incorporated additional technologies to the VIP program. The VIP incentives are estimated to generate between one third and one half of partner profits. And Cisco is simplifying the customer satisfaction requirement so that partners will go through the process only once for all technologies.
Clearly the battle over market share has escalated the battle over channel mindshare and leverage. Partners who sell both Cisco and HP products have the opportunity to reap rich rewards.