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- "New Two-Tier Distribution Channel for HP 3000"
-
- The Commercial Systems Division (CSY) has created a two-tier
- distribution channel to provide HP products and support to low-volume HP
- 3000 Channel Partners. Through this channel HP will sell HP 3000 Series
- 9X7 systems and associated peripherals to a third-party team that will
- distribute these products to authorized resellers. Objectives here
- include cost effectively improving service, support and product
- availability for select Channel Partners and maintaining a competitive
- channels strategy for the HP 3000 platform.
-
- CSY worked with other HP entities experienced with two-tier distribution
- channels and industry consultants to develop a thorough distributor
- evaluation and selection process. After a four month evaluation CSY
- chose a team comprised of Distribution Resources Company (DRC) and
- Intelligent Electronics (IE). DRC and IE will work together to provide
- product support programs for the new channel. DRC has created a new
- division, Systems/DRC, to manage the two-tier channel.
-
- The Systems/DRC & IE team offers authorized Channel Partners
- (Distributor Authorized Resellers or DARs) a large, efficient
- distribution network along with extensive HP 3000 technical resources
- and experience. Systems/DRC will manage the new program; Systems/DRC's
- services include configuration assistance, PC-automated quotation
- systems, specialized support and consulting services. Systems/DRC is
- subcontracting to IE the inventory and delivery of HP 3000 systems and
- peripherals. CPO products are also available for HP 3000 DARs and will
- be shipped from IE facilities. DARs will also have access to IE
- reseller services which include reduced rates on Federal Express
- delivery, Sprint long distance, and business and medical insurance
- plans.
-
- Target DARs for the new channel include HP 3000 ISVs and VARs who are
- currently leveraging less than $400,000 in HP equipment annually. These
- resellers will need to find a channle through which to purchase HP pro-
- ducts at a competitive price once their HP VAR Agreements expire under
- the schedule dictated by the Discount Framework Implementation. Certain
- Channel Partners above the $400,000 level also may find purchasing
- through this channel advantageous for price, availability and services.
- Systems/DRC is working with HP to recruit and service new HP 3000 DARs.
-
- As of September 17, Systems/DRC has received inquiries from over 60 HP
- 3000 VABs and ISVs interested in becoming DARs. Feedback from these
- Channel Partners and the HP field has been extremely positive. Six DARs
- have been authorized and several systems have been shipped through the
- channel.
-
- SF 38 account development representatives should evaluate current
- Channel Partners and determine those who are appropriate customers for
- this new program. For more information on the new two-tier channel
- please contact David Beckwith, CSY Product Marketing, at (408) or Telnet
- 447-7526, Russ Baldermann, HP Englewood, at (303) or Telnet 649-5551, or
- Ross Duncan of Systems/DRC at (303) 779-4301.