HP's PC-printer lovechild is cash boon for resellers

Bad news for veeps but better rebates for partners


HP's decision to stitch together its PC and printer businesses is likely driven by cost cutting but it could bring financial benefits to channel partners.

In a move first mooted by former CEO Carly Fiorina but not implemented before Mark Hurd placed his butt on the hot seat, HP yesterday confirmed the formation of the Printing and Personal Systems Group (PPSG).

“By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders,” said CEO Meg Whitman.

In reality the move will lop a load of cost out of the business, starting with the retirement of Vyomesh Joshi, veep for the printer business, leaving Todd Bradley to run the new PC and printer lovechild.

This is an "obvious cost saving," said Steve Brazier, CEO at channel abacus-stroker Canalys. He added: "[This] will then be replicated across the regions and countries; presumably you can think how many vice presidents you can cut out in one move."

But although HP staffers will not welcome further rationalisation in the ranks, the move could be pure goodness for resellers and distributors as HP has been "more difficult to work with" after splitting its Solution Partners Organisation in three.

Resellers and disties had lost bartering power while dealing with a trio of different faces at HP – the Imaging and Printing Group (IPG), the Personal Systems Group (PSG) and the Enterprise Servers, Storage and Networking division.

"By bringing PCs and printers together presumably with one sales force to the channel some of that power comes back again in terms of negotiating rebates," Brazier said.

Mike Rodwell, commercial director at Computacenter, agreed the overall visibility of volumes resellers trade with HP will increase.

He said that he understood the "synergies" in the back office, and added: "I still believe that sales and technical staff will operate more locally as [PCs and printers] are very different technologies and go-to-markets".

Jeremy Davies, CEO at channel beancounter Context, said the merger created clear cost savings opportunities but is "bound to confuse not only the messaging from HP, but also the relationships with its channel partners".

He said on top of the fact the products are different, have "diverging dynamics and to an extent, different market ... the imaging business is moving towards the [Managed Print Services] model, and PCs are a hardware commodity play".

In addition to the PPSG change, HP also revealed the Global Accounts Sales org will integrate into the newly named HP Enterprise Group led by David Donatelli, comprising Enterprise Servers, Store and Networking and Technology Services.

Brazier at Canalys said a "more ambitious" move would have been for HP to split its entire business between "volume and value". ®

Similar topics

Narrower topics


Other stories you might like

  • Zuckerberg sued for alleged role in Cambridge Analytica data-slurp scandal
    I can prove CEO was 'personally involved in Facebook’s failure to protect privacy', DC AG insists

    Cambridge Analytica is back to haunt Mark Zuckerberg: Washington DC's Attorney General filed a lawsuit today directly accusing the Meta CEO of personal involvement in the abuses that led to the data-slurping scandal. 

    DC AG Karl Racine filed [PDF] the civil suit on Monday morning, saying his office's investigations found ample evidence Zuck could be held responsible for that 2018 cluster-fsck. For those who've put it out of mind, UK-based Cambridge Analytica harvested tens of millions of people's info via a third-party Facebook app, revealing a – at best – somewhat slipshod handling of netizens' privacy by the US tech giant.

    That year, Racine sued Facebook, claiming the social network was well aware of the analytics firm's antics yet failed to do anything meaningful until the data harvesting was covered by mainstream media. Facebook repeatedly stymied document production attempts, Racine claimed, and the paperwork it eventually handed over painted a trail he said led directly to Zuck. 

    Continue reading
  • Florida's content-moderation law kept on ice, likely unconstitutional, court says
    So cool you're into free speech because that includes taking down misinformation

    While the US Supreme Court considers an emergency petition to reinstate a preliminary injunction against Texas' social media law HB 20, the US Eleventh Circuit Court of Appeals on Monday partially upheld a similar injunction against Florida's social media law, SB 7072.

    Both Florida and Texas last year passed laws that impose content moderation restrictions, editorial disclosure obligations, and user-data access requirements on large online social networks. The Republican governors of both states justified the laws by claiming that social media sites have been trying to censor conservative voices, an allegation that has not been supported by evidence.

    Multiple studies addressing this issue say right-wing folk aren't being censored. They have found that social media sites try to take down or block misinformation, which researchers say is more common from right-leaning sources.

    Continue reading
  • US-APAC trade deal leaves out Taiwan, military defense not ruled out
    All fun and games until the chip factories are in the crosshairs

    US President Joe Biden has heralded an Indo-Pacific trade deal signed by several nations that do not include Taiwan. At the same time, Biden warned China that America would help defend Taiwan from attack; it is home to a critical slice of the global chip industry, after all. 

    The agreement, known as the Indo-Pacific Economic Framework (IPEF), is still in its infancy, with today's announcement enabling the United States and the other 12 participating countries to begin negotiating "rules of the road that ensure [US businesses] can compete in the Indo-Pacific," the White House said. 

    Along with America, other IPEF signatories are Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam. Combined, the White House said, the 13 countries participating in the IPEF make up 40 percent of the global economy. 

    Continue reading

Biting the hand that feeds IT © 1998–2022