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Tuesday, August 15, 2006

HP Promises Enterprise VARs 38 Percent Discounts On PC Blades

HP is planning to make their PC Blades a great opportunity for VARS. They are promising 38 point margins (less for those discounting the product) for their channel starting November 1st. Usually, PC margins are only around 7 or 8 points.

John Snaider, vice president of HP's Personal Systems Group Americas for business PCs, said, "This is going through enterprise distribution, so it's new and different for PCs. It won't go through typical volume distributors. The thinking is to keep the value. They [the enterprise distributors] are in the best position to deploy this solution. This is not like a desktop that you just throw over the fence and sell 10,000 units and expect people to know what to do with it."

The new deal is only available to authorized HP solution providers, and the products can only be distributed by Avnet and Agilysys. By providing a thirty-eight point discount to VARs, HP will make it possible for VARs to discount deeply and still make a significant profit.

To learn more, read the full article (link above).

Blogged by Computer Consulting Kit