HP Reassures Partners That Channel Teams Remain Focused On Objectives

HP's top channel leaders, led by Vice President Stephen DiFranco, reached out to reassure partners that the $123 billion computer giant remains completely committed to key channel objectives in the wake of the unexpected departure of former CEO Mark Hurd.

"In the wake of last week’s news, we want to assure you that HP’s channel teams remain absolutely focused on our objectives to deliver a broad and profitable line of products and services to our partners," wrote the HP Channel team leadership in an e-mail sent to thousands of HP partners signed by six top HP channel leaders. "HP’s commitment to the channel is a core component of its go to market strategy."

HP's top channel leadership and executives from all of the company's business units are gathering this week to discuss how to better leverage resources, improve operations and "better serve our channel," wrote the channel leaders. HP also confirmed that it will conduct its next Americas Partner Conference in 2011.

The channel communique comes after HP shares plunged nine percent to $42.15 last Friday in the wake of Hurd's unexpected resignation following a sexual harassment investigation. HP CFO Cathie Lesjak has been appointed interim CEO.

Solution providers have expressed shock and disappointment in the sudden resignation of Hurd. They said Hurd had made great strides in building out a strong sales channel that in many cases was working hand in hand with HP's own direct sales teams.

The channel leadership, however, emphasized to partners that HP's commitment to the channel is unwavering.

"Just this week, Cathie Lesjak, HP CFO and interim CEO, reiterated to the financial community and to our employees that our strategy of growing our product portfolio and our focus on selling to and leveraging our channel partners will not change," said the channel leadership team. "A key strength for HP is our channel’s ability to navigate through challenging times; delivering the best products, services and consulting to our mutual customers. Today, it is more important than ever for us to work together to maintain our channel momentum."

The channel leadership team reassured partners that the company will continue its Executive Connection Series which put HP's top executives in the sales trenches helping partners to close deals. Hurd himself was the biggest proponent of that program doing more than 50 solution provider roundtables in the course of a year that put him side by side with partners in front of hundreds of customers.

Next: Hurd's Resignation Has Not Impacted Channel Sales

John Convery, executive vice president of vendor relations and marketing for Denali Advanced Integration, one of HP's top enterprise partners based in Redmond, Wash., said Hurd's resignation has not impacted sales.

"It is not about individuals," said Convery. "It is about solutions and HPs converged infrastructure continues to reasonate. We are continuing to close big HP deals everyday. Nothing has stalled in the process from any of our strategic customers. HP is the only manufacturer out there with an end to end solution. "

Convery said he was especially pleased that HP is continuing its Executive Connection Series which allows partners to close deals hand in hand with HP's top executives.

"Those Executive Roundtables are a great way for HP to listen to and reach out to customers," said Convery.

The channel leaders said the company's three key channel goals remain the same ones that DiFranco himself outlined at HP's Americas Partner Conference earlier this year: simplification of channel programs and processes; better alignment with business units; and streamlining its PartnerONE channel programs.

"The HP executive management team remains passionate about the channel and is prepared to continue executing against our strategy to provide strong support for our partners and to generate new business growth that outpaces the market," wrote the HP Channel Leadership team. "Our strong executive team and winning long-term strategy will help us continue to drive growth."

The other executives signing the channel communique were: Frank Rauch, vice president, Channel Sales, HP Enterprise Servers, Storage and Networking; Scott Strubel, vice president, HP Software; David Twohy, vice president, HP Technology Services; John Cammalleri, vice president, Solution Partners Organization – HP Canada; and Adriana Flores, vice president Solution Partners Organization – HP Latin America.

Convery also expressed a vote of confidence in the "senior management team at HP which he called extremely capable with "incredible leadership" at each business unit with CEO level skills and leadership.

"HP is very focused delivering value to the customer, delivering unequaled solutions across the entire product and services portfolio and appreciate the channel expertise and reach now more than ever," he said. "Our customers certainly understand the value of the HP offerings and realize change at the top will not alter the value HP brings to them as customers."

Next: The Full HP Email Blast To Partners

Here is the full HP Email blast to Partners:

Dear HP Partners:

In the wake of last week’s news, we want to assure you that HP’s channel teams remain absolutely focused on our objectives to deliver a broad and profitable line of products and services to our partners. HP’s commitment to the channel is a core component of its go to market strategy.

Just this week, Cathie Lesjak, HP CFO and interim CEO, reiterated to the financial community and to our employees that our strategy of growing our product portfolio and our focus on selling to and leveraging our channel partners will not change.

A key strength for HP is our channel’s ability to navigate through challenging times; delivering the best products, services and consulting to our mutual customers. Today, it is more important than ever for us to work together to maintain our channel momentum.

We will continue our Executive Connection series and are looking forward to conducting our next Americas Partner Conference in 2011. The Americas channel leadership team and executives from all of our business units are gathering this week to discuss how to better leverage our resources, improve our operations and better serve our channel. Our three key goals remain the same:

• Simplification of our programs and processes

• Better alignment with our business units

• Streamlining our PartnerONE programs

The HP executive management team remains passionate about the channel and is prepared to continue executing against our strategy to provide strong support for our partners and to generate new business growth that outpaces the market. Our strong executive team and winning long-term strategy will help us continue to drive growth.

The HP board has begun a search for a new CEO. Lesjak and the executive committee are working to drive a seamless executive transition and clearly understand the importance of our channel as a key competitive advantage.

Thank you for your continued loyalty and support. We look forward to working with you to grow together in the months and years ahead.

Best regards,

Stephen DiFranco Vice President and General Manager Americas Solution Partners Organization - HP

John Cammalleri Vice President Solution Partners Organization – HP Canada

Adriana Flores Vice President Solution Partners Organization – HP Latin America

Frank Rauch Vice President, Channel Sales HP Enterprise Servers, Storage and Networking

Scott Strubel Vice President HP Software

David Twohy Vice President HP Technology Services