By Ramdas S, CRN, August 18, 2010, 1500 hrs
Kerala’s channel association—which recently boycotted HP PSG to protest against their new distribution policy—is now unhappy with the vendor’s IPG business, following the decision by the IPG team to drop three Kerala partners from the role of Volume Core Partners.
AKITDA alleges that HP IPG has penalized these partners for their role in supporting the association’s call for boycott of all HP products during the months of June and July.
Digital World, Aldous Glare and Positive Systems are the three partners in question who have been dropped as Volume Core Partners of HP IPG. Allegedly the local HP sales team have communicated to these partners verbally that their status is on hold, because they did not do business for about 45 days during June and July.
“While it’s HP’s prerogative to appoint or dismiss partners, we are upset because these partners have been punished for supporting a common cause for which the entire channel has united,” said Toshy Mathew, President AKITDA.
“When the embargo was lifted on July 27, all three partners immediately approached HP IPG team and requested for stocks. They were told to wait till August 1. When they went back in the first week of August, the local IPG team informed the three partners that their accounts have been automatically locked since there was no billing for the past 45 days. The local team also expressed that they cannot do anything about this till a clearance comes from Singapore,” he explained.
“What HP local management has done is unethical, as they had misinformed the partners and could have been upfront,” Mathew added.
Sampath Kumar, CEO, Positive Systems, confirmed the news. “We have informed the association of all the details about the case and AKITDA is pursuing the case. I have been an HP partner for many years and this is the stupidest reason I have heard from them. I believe they are being unfair, and there is no doubt that they are being vindictive and arm-twisting us for supporting the ban.”
Both Aldous Glare and Positive Systems have won awards from HP IPG for exceeding targets in the past.
HP IPG has appointed Radha Electronis and Star Computers as Volume Core Partners. AKITDA alleges that both Radha and Star were signed on by HP IPG during the embargo period and hence the local team’s explanation that the system has locked the three volume partners is totally irrational and smacks of HP’s big brother attitude.
Despite CRN sharing specific information with HP IPG about the episode and seeking clarity on the matter, HP IPG spokesperson responded with a rather ambiguous statement. “HP IPG has the largest channel partner network across India with over 6,000 members and engages with its channel fraternity in a consistent, effective and well defined manner, in line with its policy and processes. This robust channel ecosystem is the backbone of the company’s growth in India and we are very focused on their cooperation and growth at all times. In Kerala, we are operating with our current partners. We have not removed any partners from our system. The partners are very valuable to us and will continue to remain so,” said the HP spokesperson. |