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DiFranco to VARs: Thank You for Your Patience

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As the lights were going down to open the Ingram Micro VentureTech Network fall invitational, solution providers in the audience were mulling about the state of Hewlett-Packard’s business and channel relationship. The poor management choices and messaging, they said, has hurt HP’s credibility.

The sentiment wasn’t lost on Stephen DiFranco, senior vice president and general manager of the HP Personal Systems Group, the division at the heart of HP’s turmoil. Before launching into his presentation on the future of the personal computer, he moved out onto the runway and sat on a stool in what felt like a warm fireside chat. His opening message to partners: “thank you for your patience and loyalty.”

“We didn’t make this easy for you and I know that. I’m always amazed at the dedication of the HP and I want to thank you for your loyalty through this process,” DiFranco said.

Just weeks prior to the August 18 announcement that HP was considering shedding its PC business, DiFranco was running the PartnerOne Americas channel program. He spoke at length of his long history in the channel and how he relates to the confusion caused by the potentially shocking shift in strategic direction.

DiFranco acknowledge the damaged caused by the half-baked plans announced by former CEO Leo Apokeker, saying it was disruptive to channel partners who have built their businesses around the HP PC platform. He explained that conversations about the future of business units happen all the time, just not as publicly as the fate of PSG.

Anne Livermore, senior vice president of the Enterprise Business unit, said at a recent European channel conference HP decided to make the potential divesture public because the company was consulting a number of experts and the potential for news leaks were too high.

CEO Meg Whitman has committed to resolving the fate of PSG by the end of October. Speculation is high that HP will retain the PC business to preserve its customer relationships, economies of scale in the supply chain and value to partners.

DiFranco said HP would inform partners of the decision as soon as it’s known. He jokingly acknowledged HP’s reputation for news leaks, saying, “The way HP works, you’ll probably know before I do. We seem to have a lot of leaks.”

Regardless of the eventual outcome of the PSG deliberations, DiFranco said HP will stand behind its legacy PC business and support partners and customers. HP has committed to honoring all warranties for existing partners. And PSG management has committed maintaining the existing technology and product roadmap regardless of the unit’s status.

Solution providers have grimaced as the HP instability, and competitors – most notably Dell – are looking to capitalize on the turmoil. Nevertheless, HP has maintained its PC market leadership. Recent market share numbers by IDC shows HP not only holding on to its global and U.S. leadership position, but increase PC sales.

DiFranco says HP sees a tremendous future in the PC market driven by All-in-One desktops, mobile workstations, thin clients and ultra-light notebooks.

While DiFranco’s gratitude and apologetic tone was welcomed, partners say HP has eroded much of its legacy as a leader in the technology market and IT channel. Even after the decision is made, solution providers say HP will have much work ahead to repair the damage it’s caused.

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Lawrence M. Walsh is CEO and president of The 2112 Group, a technology business advisory service that specializes in optimizing indirect channels and partner relationships. He’s also the executive director of the Channel Vanguard Council. He is the former publisher of Channel Insider and editor of VARBusiness Magazine. You can reach him at lmwalsh@the2112group.com.

On Twitter:
Larry Walsh:@lmwalsh2112| Channelnomics: @channelnomics

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