Channel Marker

April 17, 2011  7:32 PM

SAP loses its Wookey: Will he show up at HP?

badarrow Barbara Darrow Profile: badarrow

The twitterverse is tingling with reports (from reliable sorts like Ray Wang) that John Wookey is leaving/has left SAP. No word on his destination but smart money’s on Hewlett-Packard. Continued »

April 11, 2011  10:16 PM

Forrester: Software will lead 2011 IT spending growth

Heather Clancy Heather Clancy Profile: Heather Clancy

Market watcher Forrester Research has released its first IT spending update of the year (“U.S. Tech Market Outlook: Q1 2011”) and software looks to be the fastest growing information and communications technology (ICT) category. The estimated spend for software this year is pegged at about $219 billion, with an 8.6 percent growth rate. That’s slightly higher Forrester’s projections of 8 percent in spending for ICT as a whole during 2011.

Continued »

April 11, 2011  1:33 PM

Microsoft’s cloud conundrum

badarrow Barbara Darrow Profile: badarrow

News that Microsoft plans to move three (count ’em 3!) of its legacy ERP products to its cloud is both stunning and unsurprising. And it illustrates the company’s cloud problem.

MIcrosoft already offers hosted CRM to customers as a Software-as-a-Service (SaaS). But Microsoft Dynamics CRM Online is not yet hosted on Azure, the company’s much-touted cloud platform which has been available, at least in part, since early last year.

Continued »

April 7, 2011  12:00 PM

HP sues Adrian Jones, war with Oracle rages on

badarrow Barbara Darrow Profile: badarrow

Hewlett-Packard VARs said it might get ugly and it has.

HP is suing former channel chief Adrian Jones for theft of trade secrets such as strategic and financial plans, sales figures and employee information. Reports of the suit hit Wednesday night. Continued »

April 6, 2011  6:02 PM

Microsoft to host ERP, so what?

badarrow Barbara Darrow Profile: badarrow

Next week the world will hear more about plans for Microsoft-hosted ERP.

That move has long been weighed and even Microsoft ERP partners who sell and implement Dynamics AX, GP, NAV, or SL ERP products recognize the vendor must offer this choice given that competitors–Oracle, NetSuite, et. al–do so already. Continued »

March 30, 2011  4:18 PM

Top Ten Takeaways from HP APC

badarrow Barbara Darrow Profile: badarrow

LAS VEGAS–Hewlett-Packard’s Americas Partner Conference was chock-full of threads this week. Here’s what bubbled to the top. 

 1: The jury’s still out on whether new HP CEO Leo Apotheker is a true channel friend or not.  He said all the right things, APC attendees agreed. But, they remind each other, talk is cheap. It could very well be true that his silence over the first few months of his tenure was natural for a guy trying to get his mind around a very, very big company. Or, maybe not.

2: HP Technology Services was not the belle of this particular ball.  A good chunk of attendees headed for the exits when Gary Budzinski took the stage Tuesday. Several partner sources said while HP is opening up more of its services offerings to partners, most VARs see it more as a competitor than an asset.

3: Partners “get” that HP wants them to sell all of its products, across groups, but even the most loyal said it makes no sense for them to go 100% HP.  There was a lot of HP-led talk about HP “franchise” partners. Said one: “I love HP. I love its products. But I’m a little VAR, I have to pick my battles and they’re in way too many battles.” And,  it is a big gamble to put all your eggs in one vendor’s basket.

4: Oracle was the enemy du jour, but Cisco wasn’t far behind. Nor Apple. Executive VP Dave Donatelli called out Oracle for discontinuing software development for Itanium.

Oracle’s move targeted the Unix market, he said. “A reasonable person looking at this will scratch their head. In Itanium market share, Unix share, we held steady at 26 to 27%. A decision like that gets made when you’re losing share,” he said.

“Since Oracle acquired Sun, we surpassed Sun in share. They’re number three and we’re number two. One area they missed in their guidance was in Sun hardware revenue. This was a unilateral decision and anti-competitive behavior,” he noted. Then he asked HP partners to lobby Oracle to reverse itself.

5: Channel guy Stephen DiFranco and team did a good job highlighting small-but-growing HP VARS–many of which started–in the HP way–in someone’s garage or dorm room.

6: Even skeptics toting iPads at the show seem convinced that HP might make a go of its TouchPad/WebOS tandem provided it gets them out the door.  The company needs to “thread the needle” between the closed-off iTunes/iPhone/iPod fantasy island and the no-holds-barred Android chaos where every carrier seems to have its own Android version.

7: HP Networking’s done good. Real good.  Including the 3Com acquisition, that business grew 183% in the first quarter compared to year-ago period. Without 3Com, growth would have been 30%. The gazillion dollar question is whether that momentum can be sustained and whether Cisco networking will continue its anemic performance. Cisco, apparently,  is so fixated on UCS and “immersive” video that it’s let its bread-and-butter switching and routing business wilt. (Make no mistake though, Cisco’s still number one in networking overall. )

HP seems serious about keeping that networking mo-jo going, unveiling a slew of channel incentives including additional margin for competitive wins.

8: Surprise! Printing’s still a good business and the continuing rage for mobility and new form-factor devices will only accelerate that. VARs that haven’t dabbled in multifunction printers or managed print services, should take a look at them now. HP ships 60 milliion printers a year.  A recurrent theme was HP pc/laptop/smart phone/tablet products as onramp and printers the offramp to the cloud.

9: Channel conflict is a way of life. Interesting to hear Randy Seidl tell hundreds of HP partners that if they’re in an account but NOT pushing all of  HP’s storage-server-and networking products in that account, HP will bring in a partner to compete with them. Gulp. Everyone knows that’s true, but that was pretty stark. “Symantec would do the same thing but sheesh,” grumbled one attendee.

Another brushed off the verbiage. “That’s just Randy.  He likes being a tough guy.”

10: Direct sales are not cheaper than channel sales.  DiFranco, VP and general manager of HP’s Solution Partners Organiztion, said internal research showed that HP in the past had not fully accounted for the cost of direct sales while it tracked every penny going towards a channel sale. That meant HP was underestimating the real cost of direct sales. Hopefully now that they’ve got their metrics straight, there really will be a reduction of conflict in the field.

Let us know what you think about the story; email Barbara Darrow, Senior News Director at

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March 29, 2011  9:20 PM

MSPAlliance dreams up service provider certification

Heather Clancy Heather Clancy Profile: Heather Clancy

One of the toughest tasks for any technology solution provider is building trust with would-be customers. The job gets even tougher when you are asking a business to entrust certain pieces of their IT infrastructure to the so-called “cloud.” Can the service provider REALLY guarantee service levels? What about security? What are the risks? That’s why the MSPAlliance has developed a new certification for cloud and managed service providers that could help in building customer credibility. Continued »

March 29, 2011  2:44 PM

HP APC: Leo’s here, how’d he do?

badarrow Barbara Darrow Profile: badarrow

LAS VEGAS–Hewlett-Packard VARs have had their knickers in a twist since the unceremonious departure of HP CEO Mark Hurd in August and the subsequent hiring of Leo Apotheker as CEO a few months later. Continued »

March 28, 2011  4:09 AM

HP partner wish list

badarrow Barbara Darrow Profile: badarrow

LAS VEGAS–As the Hewlett-Packard Americas Partner Conference convenes here Monday,  HP VARs and integrators have a lot of questions for the new management. Here, based on a totally unscientific survey, is what they want to hear from HP.

1: What’s the HP cloud plan? Be specific about deliverables and time tables. HP CEO Leo Apotheker recently made some broad-brush announcements about HP’s plan to build cloud infrastructure and to host a cloud-based app store. But where’s the beef? Continued »

March 25, 2011  3:25 PM

Oracle software biz soars but hardware remains a mystery

badarrow Barbara Darrow Profile: badarrow

Both Oracle co-presidents were upbeat on yesterday’s third quarter earnings call–flaunting 37% revenue growth to $8.8 billion compared to the year-ago figures.

Sales of new software licenses rose a healthy 29% to $2.2 billion compared to the comparable-quarter last year.  (Here’s a transcript of the earnings call.)

But the real story on Oracle hardware, on the other hand, remains a mystery. Oracle claimed $1 billion in hardware sales for the quarter but there is no year-ago comparison since Oracle completed its Sun buyout in the midst of its third quarter last year. Continued »

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