Criticizing Compaq
By Kelley Damore, CRN
11:22 AM EST Fri., June 29, 2001
Compaq needs to articulate its relationship with the channel . . . and fast.
With three recent moves, the company alienated both its high-end enterprise VARs and traditional small- and midsize-business solution providers, both of which sell a wide range of Compaq products.
KELLEY DAMORE Can be reached at (7810 839-1272 or via e-mail at kdamore@cmp.com.
One hit to the channel took place last Monday when Compaq said it would dump the Alpha processor and integrate Itanium into its server line. The move leaves long-standing Digital Alpha solution providers in the lurch, scrambling to figure out a strategy for their customers. As one VAR explained, it puts Alpha solution providers in defensive mode rather than growth mode. For Compaq, the move is one step forward and two steps back. The company now needs to re-explain its commitment to the Alpha solution providers which, by the way, were being courted as Compaq service partners. Their allegiance and commitment to Compaq could change based on this decision.
And on June 12 Compaq Chairman and CEO Michael Capellas sent an internal e-mail memo to his team titled: "Transforming Compaq."
In this memo, he outlined an initiative to serve small and midsize businesses directly.
This is another slap in the face to the solution provider community. As I have said time and time again, solution providers are the local trusted adviser to small and midsize companies. Compaq was built and grew on a channel model. To abandon solution providers now would be shortsighted.
Finally, to add salt to the channel wound, Compaq canceled its PartnerVision conference, originally scheduled for August.
The reason cited was the economic climate. But you would think that the company would be able to fork up the money for a conference for its extended sales force. Remember, still more than half of Compaq sales are sold through the channel and if my math is right, solution providers essentially helped bring in at least $23 billion in revenue for Compaq. Is a conference too much to ask for?
So I would urge Compaq to consider the implications for the channel when it makes business decisions. I would also urge the company to look at the mistakes that vendors such as Novell and Hewlett-Packard have made in recent years and what happened to their sales when they decided to abandon a loyal channel. These changes could very well come back to haunt Compaq in the next year.
Is Compaq turning its back on the channel? I can be reached at (781) 839-1272 or via e-mail at kdamore@cmp.com. |
