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DAY 2 – ‘Partnership is the only way we know at HP...’

by Stuart Wilson, Wednesday 15 February 2012

Day two of the HP global partner conference in Las Vegas kicked off with keynote speeches from Vyomesh Joshi, executive VP at HP IPG, and Todd Bradley, executive VP at HP PSG. In terms of products, HP whipped the covers off a snazzy new all-in-one workstation – the Z1 - leading to an entertaining photographer scrum at the front of the auditorium.

During his keynote speech, Joshi commented: “Partnership is the only way we know at HP to continue to grow our business in 170-plus countries.”

“The key trend is content explosion,” he added. “Our interest is in printable content – this could be from a smartphone, a tablet, PC or even through a smart TV. We want to make sure that, architecturally, HP is ready for content in the cloud. Every printer we ship has an e-mail address, is web connected and cloud ready."

Joshi is keen for IPG’s partners to continue moving up the value ladder, encouraging them to evolve their offering and further develop their customer engagement models.

Addressing HP partners, Joshi said: “We need to move [IPG] from transactional relationships to contractual relationships. We want to interact with the installed base in a different way. If a partner is working in hardware and supplies, we want them to start offering services too. And if a partner is already in hardware, supplies and services, we want them to move to solutions.”

Joshi claimed that the total addressable market for IPG would exceed US$200 billion in 2013, comprising US$118 billion in printing, US$48 billion in services and US$48 billion in content digitisation. Both HP and its partners are well positioned to build new revenue streams as demand for supplies continues to grow, claimed Joshi.

During his keynote address, PSG’s Bradley earned a round of applause from partners for his opening comments that alluded to HP’s shock announcement last August that it was considering divesting its PC operations.

Bradley said: “We want to thank all of you [partners] collectively. You’ve stuck with us and grown with us during a very challenging year. Collectively, you are the reason we are number one and continue to win in the marketplace.”

“HP is a company that sets and determines trends in the market as opposed to following them,” he added.

Bradley also produced some impressive statistics showing that HP’s consumer desktop failure rate had been reduced by 52% from 2009 to 2011. He also claimed that only 18% of the world’s population currently use a PC, highlighting the vast market growth potential that still exists.

“We want to deliver solid margins [in PSG] both for HP and for its partners,” he added.

“HP continues to invest aggressively in high growth emerging markets such as Brazil, Russia and India,” Bradley continued.

“We’re going to bring this business to new heights and we’re going to do it together [with partners],” said Bradley.

CE ANALYSIS: Apart from a reference to slates on one of his slides, PSG’s Bradley kept quiet on HP’s plans and intentions in the tablet and smartphone space. The statistic he used claiming that only 18% of the world’s population currently use a PC was a bit of a double-edged sword in our opinion. After all, there’s no guarantee that the remaining 82% will ever need to use a PC. It may be the case that smartphones and tablets provide everything they need in terms of functionality and internet access capabilities.

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March, 2020

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