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TAIT Calls For HP Boycott Following Partner Policy Disagreement


 By Preethi J, CRN, September 1, 2010, 1100 hrs

The discussion between TAIT and HP executives on the vendor’s recently changed distribution policy has ended in vain. Accusing HP of not trusting IT distributors, TAIT conveyed its disappointment that the meetings held so far were a letdown. The channel organization has announced that channel partners in Mumbai will boycott HP products, starting today.

On August 20, 2010, TAIT met with Parikshet Singh Tomar, Head, Consumer Channel Sales, HP, and Manoj Kumar Grover, Regional Manager, West India, HP PSG to voice its concerns about HP’s new policy of signing up telecom players as tier-1 and tier-2 partners. In Mumbai, HP appointed Priyanka Telecom as a tier-1 partner and telecom players RSG Telecom, Citiphone and CRM Technologies as tier-2 partners.

The association was optimistic about HP changing its distribution policy and expected it to replace telecom partners at the tier-1 and tier-2 levels with IT channel partners, especially since the vendor had acquiesced to the same demand by All Kerala IT Dealers Association (AKITDA).

“We are deeply upset by the way HP has structured its new policy and selected telecom partners over IT partners and do not understand their reasons. Since they have refused to change the policy, we have no choice but to boycott HP products. All our channel members have agreed to stop billing from HP from today,” said Ketan Patel, President, TAIT.

In Kerala, HP replaced stockists DC Johar & Sons and Sree Ayyappa Agencies in central and southern Kerala respectively with an IT partner Kochi based Noveon Systems. However, this time the vendor has refused to comply, causing TAIT to issue an official call to boycott all HP products in the channels. Patel said that channel partners in Mumbai would be informed about the boycott today. 

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Comments
9/17/2010 8:19:27 AM
 
Restricting any partner from entering any industry is unlawful. By this thinking all business man must do the business what their forefathers were doing. Appointment of partners are done by all the companies are on the basis of their experience in doing business and vision match for going forward in a business.
 
 - VIREN LOHANA,PACIFIC CITIFONE DEALS PVT. LTD,MUMBAI
9/9/2010 1:59:04 PM
 
I agree with Mr.Kapil & Akshay, TAIT is acting only because of few vested interests. The retail partners/dealers are not affected by the fact whether the stocks are supplied by a IT background or another background distributer, as long as he has a sound distribution background and genuinely passes on the schemes, prices and timely delivers. Is the move by TAIT legally allowed ? Who will be losing the sales on this boycott as customers would buy the HP product from any of the nearest availabe source. Market feedback is that T3 partners are happy with the new distribution setup.
 
 - Manoj Chandgothia,Shree Siyaram Techologies,Mumbai
9/7/2010 3:39:21 PM
 
Dell , Ingram and Others are instigating this all. We as RD's of hp are very very happy and profitability has really improved. And this is the pain to Union members most of whom are retraders.
 
 - Kapil Mathani,,Rourkela
9/7/2010 3:36:03 PM
 
TAIT is being driven by Paltry motives. Most of the directors are eying T1 and T2 positions. Has anybody asked a normal retailer ? He has a fixed price, a fized RD to solve all his issues ? Middlemen are not allowed in this business and hence these middlemen TAIT netas are creating issues for a good move, and they will fail for sure.
 
 - Akshay Patel,Akshay Computers,Gurgaon
9/4/2010 10:13:25 AM
 
This is really a wise move by HP. After leeching the IT partners all these years, it has moved on to Telecom Partners to drain their sap. Telecom partners! Beware of HP and alert. IT Partners! It is time, we did introspection and stop patronizing HP and their products/solutions.
 
 - Srikanth S,Networth Systems,Vellore
9/1/2010 8:02:37 PM
 
We welcome the move by TAIT. HP India has failed in taking IT channel into confidence and like other vendors should have presented the changed requirements to IT partners first. If the IT partners did not rise up to its new expectations then HP could have moved out of IT Channel. This misadventure by HP India is straining the vendor-channel relationship which is the order of the day whenever an executive handling the channels change. Channels need to get clear long term strategy from vendors and not to waste their time with dynamically(sic) changing vendors.
 
 - Prasad PN,Advisor Confed-ITA,Pondicherry
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