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By | Paul Kunert 29th April 2014 15:29

HP dangles channel compo carrot for Converged Systems

Roll up, roll up, double digit margin for anyone that sells the 300 or 700

Nothing grabs channel folk by the short and curlies like a margin making scheme and with this is mind HP has strapped a compensation rocket to the posterior of several Converged Systems to get sales to fly.

Code-named Shark, the CS300 and 700 lines - server, storage and networking in a rack - hit the streets in December and are engineered systems HP claims are optimised for virtualisation workloads.

The entry level version for VMware or Microsoft virtualisation is built to handle between 50 to 300 virtual machines, and the CS700 fills the 100 to 1k VM space.

Mark Payne, HP Vice President for Converged Systems, Enterprise Group EMEA, told us any biz customer that buys one of the two lines will be classified as net new, bringing more "rewards" for channel sellers.

"If we sell the volume that we expect to sell we'll place an additional $4m into the channel as a reward for doing so," he said, "it's double digit rewards, significantly greater than ten per cent.

There are no sales targets to hit to achieve the extra rebate love, as per the change HP made last year when it removed caps and revenue threshold gates, so channel types earn from the first product sold.

Some enterprise partner used to do why knitting by stitching together a server with some storage and networking but HP reckons the CS lines are freeing channel folk from this "low level integration via automation".

"We encourage the service partner to offer a range of services around implementation and then other project related services in the application space," said Payne. ®

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