The 10 Biggest HP Stories Of 2013

HP Stages A Channel Comeback

Hewlett-Packard made big gains in 2013 with HP CEO Meg Whitman leading the charge on a channel comeback that included, among other things, a new, simplified and more predictable PartnerOne program, along with major technology advances including software defined networking and cloud computing game-changers.

10. HP Adds New Channel Talent

HP upped its channel IQ by adding more dedicated channel talent to its rolls. Topping the list was the appointment of Sue Barsamian (pictured), a 25-year HP veteran and rising star in the organization, to a newly created role as senior vice president, HP worldwide indirect sales, Enterprise Group.

Barsamian kicked the enterprise channel effort into high gear, speeding up an arcane special-bid pricing quote process and adding new talent aimed at driving channel sales growth in 2014. Among the new hires were Juniper Networks channel veterans Donna Grothjan and Hojin Kim.

The new talent adds to an already strong channel team that includes: Scott Dunsire, vice president and general manager U.S. Channel Sales; Terry Richardson, vice president U.S. Channel Sales, Enterprise Group; Stephen DiFranco, vice president, Enterprise Group Channel Alliance & OEM organizations; and Mike Parrottino, vice president and general manager of U.S. SMB Sales and Partner Enablement.

9. HP Inks A Deal With Google

HP stepped up its multiplatform strategy by becoming a Google Apps For Business Reseller as part of an ambitious plan to dramatically redefine the small-to-midsize business (SMB) IT customer experience with HP SMB IT in a Box.

HP is billing the product as a "one-stop shop" SMB technology solution that includes Google Apps For Business with HP's own "unique" management software layer combined with HP PCs and printers. The offering was envisioned from the start as a channel partner play. Eventually, the SMB IT in a Box product will include integrated consoles developed by HP for resellers, IT administrators and end users, allowing easy access to the entire solution including Google Apps for Business.

HP targeted about several hundred cloud-savvy resellers to initially carry the product with a massive global rollout slated for 2014.

8. HP Haven Gains Partner Momentum

HP was one of the few vendors that backed up its big data effort with an aggressive partner program. The result: a growing solutions portfolio for the HP Haven big data platform from the 120 partners that have committed to Haven.

Among the new Haven partner offerings: a health care analytics solution from Avnet; a service analytics platform from Wipro; a threat intelligence solution from Accenture; a commercial risk assessment solution from Capgemini; an insider threat analysis solution from Deloitte and an ecommerce predictive analytics solution from PwC.

"The proof of success is the building of apps on the platform," said John Knightly, vice president market development for HP Software Marketing. "This is a juggernaut!" Juggernaut indeed. And HP is not standing still -- it is pressing for even wider adoption among independent software vendors (ISVs) with a new developer program that was launched in December.

7. Whitman Names Business Unit Chiefs

HP CEO Meg Whitman often says one of the secrets to success is having the right people in the right job with the right attitude. Among the 2013 appointments that have already resulted in operational improvements and more aggressive field sales activity are Bill Veghte (pictured far left), who was COO, to the top enterprise group job; the appointment of Dion Weisler (pictured right), who was head of HP's Asia Pacific printing and personal systems business, to the top printing and personal systems job; HP CTO Martin Fink taking on expanded responsibilities for the HP Cloud Business; and Henry Gomez being named Executive Vice President and Chief Marketing and Communications Officer.

Veghte delivered the first enterprise group sales growth in two years. Weisler sharpened HP's printing and personal systems competitiveness. Fink stepped up the pace of HP's cloud computing activity and Gomez established a new worldwide channel marketing offensive.

6. HP Beats Cisco To The SDN Punch

HP launched an all-out Software Defined Networking (SDN) offensive in 2013 with a slew of new SDN technology offerings backed up with an aggressive SDN partner enablement effort, including new SDN certification.

Among the new SDN offerings: its most comprehensive set ever of FlexFabric solutions -- which include both physical and virtual switches, Virtualized Services Router (VSR) and Virtual Application Networks (VAN) SDN Controller. HP already has multiple applications optimized for use with SDN environments, and is set to launch in the first half of 2014 an HP SDN App Store.

More than 10,000 solution providers have already participated in HP's SDN Learning Journey program. And the company has integrated SDN content into its Networking Sales Certified and Advanced Sales Certified certifications. Cisco, meanwhile, only just fully acquired its SDN spin in Insieme Networks and rolled out its SDN strategy in November.

5. HP Ups Its Cloud Game

HP's best-kept secret may well be its underrated cloud computing prowess. HP ended the year with a cloud bang with the launch of a next-generation HP CloudSystem, including its OpenStack CloudOS and a new simplified consumer-like management interface. The new system, which can burst to public clouds, including Amazon and Azure, dramatically simplifies the ability for partners to quickly roll out private clouds for customers.

HP also launched a managed service virtual private cloud offering and showcased its first public cloud partner program, allowing VARs to receive annuity-based commissions as agents for HP. One sign of HP's public cloud strength: a deal with Workday, a Pleasanton, Calif.-based enterprise human resources Software-as-a-Service provider partially owned by Amazon CEO Jeff Bezos (pictured).

4. Sharks In The Water

Hewlett-Packard ended the year with the launch of a new lineup of converged systems -- code-named Shark -- that partners expect will tear up competitors.

The mainstay offering is the HP ConvergedSystem 300 for Virtualization, which the server leader says delivers double the performance at a 25 percent lower entry price than the rival EMC-Cisco-VMware VCE VBlock System 100. The ConvergedSystem 300, which is expected to shake up the midmarket virtualization market, works with both Microsoft and VMware hypervisors and is priced starting at $136,600. HP rounded out its Shark lineup with a new hosted desktop product and a product based on HP's hot selling Vertica analytics software.

Partners credit HP Senior Vice President Tom Joyce, who took the new converged system helm just eight months ago, for delivering the new product lineup in record time, along with a renewed channel commitment with exclusive channel offerings.

3. A Stronger Balance Sheet

One sign that HP CEO Meg Whitman's five-year turnaround plan is picking up momentum: a much improved HP balance sheet. HP entered the third year of the turnaround with its operating company net debt reduced by nearly $8 billion over the last year, bringing it below the high debt level that soared when it paid $12 billion for Autonomy in 2011.

"With that enhanced financial strength, I can tell you we have got a lot more flexibility to return cash to shareholders and to make investments needed to grow our business," said Whitman at the company's annual analyst meeting. HP also has generated approximately $7 billion in free cash flow in the first nine months of the fiscal year, well ahead of initial guidance for the year. In fact, HP expects $8 billion in free cash flow for fiscal 2013.

2. A Revamped PartnerOne Program

HP put its money where its mouth is with a new profit-packed, four-tier PartnerOne channel program, which won plaudits from partners for delivering lucrative new incentives for selling the complete HP portfolio.

The new PartnerOne global channel program, which went into effect Nov. 1, encompasses HP's enterprise products, software, and printing and personal system portfolios, and provides dramatic increases in profitability as partners move up the stack from Business Partner to Silver specialist to Gold specialist and finally the highest Platinum level.

HP CEO Meg Whitman (pictured) says the company's aim is to deliver the most profitable partner program in the industry -- bar none. Partners say HP has done just that with not only new rebate incentives around key opportunities like converged infrastructure, HP networking and HP CloudSystem with 3Par storage, but also simplified certification and training.

1. Whitman Sets The Table For Channel Sales Growth

It's no secret that CEO commitment is critical to success in the channel. In 2013, Whitman restored partner confidence and set the stage for channel sales growth in 2014.

Whitman calls it "putting partners first with a get-back-to-HP's-channel-roots offensive." That CEO channel commitment, backed up by a new highly profitable partner program and innovative new products, has partners predicting big sales gains in 2014.

Fred Traversi, president of AdvizeX Technologies, a unit within services giant Rolta, a $500 million IT services powerhouse, said he is expecting his HP business to be up 25 percent in 2014. That's twice the growth rate of AdvizeX's other vendor offerings, said Traversi.