https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Mergers and Acquisitions


HP Split: Good Move for Channel Partners?

  • Written by DH Kass 1
  • October 6, 2014

In confirming it will split into two $50 billion, publicly-held companies, Hewlett-Packard (HPQ) said the move will make it more nimble and able to respond swiftly to changes in technology.

In confirming it will split into two $50 billion, publicly held companies, Hewlett-Packard (HPQ) said the move will make it more nimble and able to respond swiftly to changes in technology.

Maybe that’s pablum and maybe it’s accurate but still, it’s difficult to ignore that HP, in its recently concluded Q3, dropped 4 percent in its venerable printer business while busting out 12 percent PC growth. For the same period, Enterprise Group sales ticked up by 2 percent but services and software slipped by 6 percent and 5 percent, respectively.

Those aren’t exactly knock ‘em dead numbers. And, that was in a period in which HP broke an 11-quarter revenue losing streak but still suffered a 27 percent drop in net earnings.

So, it’s in that context we ask: Will HP’s monumental structural changes make sunnier horizons for channel partners?

It’s early, so opinions can (and will) change, but right now partners seem enthused by the possibilities the cleaver has brought to bear.

Let’s look at five changing factors:

  • HP must detail to partners what the structural changes mean for them. As with any change, but especially with colossal upheavals, comes fear, uncertainty and doubt, or the FUD factor. HP chief Meg Whitman already is signaling the new entities—HP Inc. and HP Enterprise—will collaborate to ensure partners selling both lines don’t risk losing enablement, marketing support and financial incentives. How HP communicates those changes is equally as important as the modifications themselves.
  • Will the spinoffs open up new opportunities for partners? Probably. By freeing up its consumer-centric PC/printer business from its commercial-focused enterprise operation, each should perform better unencumbered, enabling partners to capitalize on the value of both. Partners selling and supporting both product lines likely will continue to do so no matter what the structural differences.
  • Will HP support become a larger issue? How HP supports the channel in pre-sales and post-sales situations will go a long way to ensuring that partners selling either one line or the other, or both, are confident the vendor has their backs. It will become increasingly important that partners understand how the changes affect their support teams.
  • Synergy. Weird word, no one really knows what it means, but in this case the question is whether PCs and printer sales will prompt higher-up-the-food-chain enterprise sales, or vice versa. It’s debatable. But if HP believes there’s connections between the two new companies that partners can exploit for competitive advantages and profits, it behooves the vendor to talk about those possibilities to partners.
  • What’s the play for HP’s distributors? There’s no word yet but at some point, the role HP’s distributors play in this deal has to change somewhat, also signaling that how partners interact with distributors is likely to be scrambled a bit, too. Making certain the messages are clear about benefits partners gain from working with distributors will be important.
Tags: MSPs Mergers and Acquisitions

Related


  • Mergers and acquisitions_M&A
    Calligo Acquires Decisive Data, Beefs Up Data Insights Services
    This is Calligo's 10th acquisition since it launched in 2012, and the fifth during the pandemic.
  • Security Merger
    Palo Alto Networks Unveils Bridgecrew Acquisition, Prisma Access 2.0
    Bridgecrew is a pioneer in shift left, focusing on infrastructure as code (IaC).
  • VDI
    TA Associates to Acquire Virtual Desktop OS Provider IGEL
    Microsoft and HP veteran Bill Veghte will become IGEL’s executive chairman.
  • Merge road sign
    M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing
    ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Huntress Acquires Level Effect EDR to Beef Up Platform
  • Hornetsecurity Acquires Altaro for Expanded Security Services
  • SolarWinds MSP President: Rebrand Will 'N-Able' Partner Opportunity
  • IBM Names CEO of New Managed Services Spinoff

Galleries

View all

Channel Partners Virtual 2021 Is the Hottest Ticket in Town

February 26, 2021

Industry Perspectives

View all

The “Roaring 20s” Are Coming

February 25, 2021

Three Ways MSPs Can Improve Supply Chain Security

February 24, 2021

SASE: The Key to Mitigating Business Transformation Risk

February 22, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 17, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

White Papers

View all

Ready To Add Cutting Edge IoT Solutions To Your Portfolio?

  • 1
February 25, 2021

What Is The Value Of Distribution For The Internet Of Things?

February 25, 2021

The Internet of Things (IoT): Where do You Begin?

  • 1
February 25, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Amazon WorkSpaces @awscloud DaaS client will be available on @IGEL_Technology virtual endpoint client OS.… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@VMware cutting more workers in California as part of ongoing #workforcerebalancing. #layoffs… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

#CPVirtual is March 2-4. It’s the hottest ticket in town — any town, since it’s 100% online — so make sure you have… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@datto, @ThreatLocker partner to streamline #MSP secure business operations. dlvr.it/RtYvJK https://t.co/nKGnwbblNO

February 26, 2021
ChannelFutures

Infographic: Why Partner with Sierra Wireless and GetWireless? dlvr.it/RtYh1m https://t.co/KcBFzXIx7l

February 26, 2021
ChannelFutures

Infographic: The Sierra Wireless Essential Series dlvr.it/RtYgxv https://t.co/CatxbRHzXr

February 26, 2021
ChannelFutures

#Threatprotection is no small matter for #MSSPs. Find out what vendors say you have to do this year to protect your… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

Cloud strategies and cybersecurity are key, and #COVID19 will have more impact than #Brexit on U.K. channel, says… twitter.com/i/web/status/1…

February 26, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X