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 Channel Futures

Sales & Marketing


HP: 50% of Managed Services Market Involves Small Business

  • Written by Joe Panettieri 1
  • April 26, 2010
At the HP Americas Partner Conference in Las Vegas, Hewlett-Packard's channel keynote focused heavily on SMB opportunities. Most of the hour-long discussion, led by Channel Chief Stephen DiFranco, focused on traditional product sales into the SMB space. But for one brief minute, DiFranco said the magic words: Managed services. Here's a recap.

At the HP Americas Partner Conference in Las Vegas, Hewlett-Packard’s channel keynote focused heavily on SMB opportunities. Most of the hour-long discussion, led by Channel Chief Stephen DiFranco, focused on traditional product sales into the SMB space. But for one brief minute, DiFranco said the magic words: Managed services. Here’s a recap.

First, some background from today’s meetings between HP’s channel team and MSPmentor. For the most part, the discussions were upbeat and optimistic. No doubt, HP has a strong, big product portfolio. And HP VARs at this conference seem optimistic.

Now, the challenge: Start quizzing HP channel managers about recurring revenue strategies, SaaS and managed services — and you might get concerned. When I asked about those topics today at the conference, most of the answers I received today were polite realizations that SaaS and managed services exist. But I didn’t hear anyone from HP clearly state how HP partners can generate recurring revenue.

Sure, there were passing mentions to SaaS relationships with USA.net and Microsoft BPOS. But there was nothing “new” here about HP’s overall recurring revenue efforts for partners.

Still, DiFranco gave me reason for hope. During one brief moment in his keynote, DiFranco noted that 50 percent of managed services revenues in the U.S. involve small businesses. Conventional wisdom says the MSP industry mostly involves large enterprises, DiFranco conceded. But he truly emphasized the MSP connection in small business.

Even so, this blog entry is a cliffhanger — an HP MSP story that remains incomplete. DiFranco didn’t offer any details about how HP will help partners address the MSP opportunity. But you can almost sense that answers will arrive soon. I’m sitting down  with DiFranco on April 27, and I’ll keep probing for answers on the MSP front.

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Tags: Agents Cloud Service Providers MSPs VARs/SIs Sales & Marketing

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8 comments

  1. Avatar Joe Panettieri April 27, 2010 @ 12:56 am
    Reply

    Update: Paraphrased from HP’s channel team…

    During a panel discussion, HP also discussed managed print services. Long term, HP wants to “lead” the managed print space over the next 5 to 7 years. Some programs will be announced over the next few days. There is managed print forecasting going on, but HP says it wants to “capture” the growth opportunity with partners. It all starts with a base layer — get the infrastructure under control at the company site, HP said.

    I will check in with HP tonight and tomorrow to get more managed print info, if possible.
    -jp

  2. Avatar Gerard April 27, 2010 @ 12:52 pm
    Reply

    Joe,

    HP’s approach and your comments are encouraging — I strongly believe SMB is the place to be for managed services (guess that is why we bought MSPSN, huh…).

    It is apparent that most vendors still have trouble cracking the DNA for the SMB space. This spells opportunity for the SMB oriented Solution Provider. Sounds like a topic for Channel Happy Hour!

    Safe travels, Joe, you are a globe-trotting madman lately.

    Best,
    Gerard

  3. Avatar Gerard April 27, 2010 @ 12:54 pm
    Reply

    PS. I still think most Managed Print solutions are too complicated. Leads me to believe a “Simplified Print Services” solution might get traction.

    Enjoy,
    Gerard

  4. Avatar Joe Panettieri April 27, 2010 @ 1:07 pm
    Reply

    Gerard: The HP Americas Partner Conference has been interesting. Very, very product centric event. I guess that shouldn’t be surprising, considering HP says most of its products lead their respective categories.

    MSP news hooks are difficult to find at the event. And when it comes to services, HP is telling VARs how to reseller HP’s own services. I need to keep an open mind on HP’s messaging because it seems to be working, considering HP’s recent financial performance under CEO Hurd.

    But still, I do believe Stephen DiFranco will quietly build more of a managed services focus within HP’s channel messaging. I’m sitting down with DiFranco in a few hours and plan to ask him a bit more…
    -jp

  5. Avatar Marion Lebda April 27, 2010 @ 7:25 pm
    Reply

    Being new to this space, I am wondering how HP’s decision impacts managed print companies like NewlineNoosh and Inner Workings?

    Thank you, Marion.

  6. Avatar Joe Panettieri April 27, 2010 @ 8:02 pm
    Reply

    Marion: Thanks for posting the comment. I met with 2 key HP executives today to discuss managed print and managed services. I will be posting a blog soon to offer some updated perspectives. Separately, I will give NewlineNoosh and Inner Workings a look.
    -jp

  7. Avatar Stephen DiFranco May 11, 2010 @ 3:11 am
    Reply

    Joe – like to discuss more amp; share my thougths with your readers. SDF

  8. Avatar Joe Panettieri May 11, 2010 @ 12:42 pm
    Reply

    Stephen: I’ll be sure to reach out to you today. Thanks for the note.
    -jp

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