Compaq To Intro New Services Program - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Compaq To Intro New Services Program

Compaq Computer next week will introduce new levels of service authorization for VARs designed to generate more business among small and midsize companies. The Compaq Services Network program, which the vendor is scheduled to unveil Tuesday before its PartnerVision conference in Houston, reflects Compaq's need to deliver packages of enterprise-class services and hardware directly, while apportioning higher-margin services for the midmarket to its channel, Compaq officials say.

About 3,000 resellers today are authorized to fulfill pre-packaged, extended-warranty maintenance and repair services on behalf of Compaq, according to Marci Meaux, Compaq director of worldwide channel services. Next week, the company will begin a "Premier Services Reseller" authorization for hardware VARs, granting them permission to quote non-standard services such as network configuration and integration, that Compaq would deliver. The vendor also aims to double its tightly controlled group of 250 "Systems Service Providers," enabling more consultants to perform asset management, network installation, and systems integration on behalf of Compaq.

"The big focus of Compaq Services Network is small and medium business. Compaq is taking more of a direct lead with our large enterprise customers, and we'll use VARs to extend our reach," Meaux says. "We have the capability ready to go. This isn't something we're talking about and will roll out later."

In addition, Compaq plans a "Professional Services Provider" designation for later this year, which would allow partners to share Compaq research and development information. Compaq will also grade consultants on customer satisfaction for integration services they perform.

The moves come as Compaq aligns its 27,000 service employees within the same division that sells enterprise servers, storage, and other hardware demanded by data centers. In a conference call with analysts this week, Compaq's new CEO, Michael Capellas, said increasing Compaq's 6% growth in 2Q service revenue by moving to market faster is a priority.

Yet analysts say that as Compaq tries to forge more direct relationships with large companies, the vendor needs to leave more than lower margin extended warranty service for its channel partners. "The problem is that you end up walking a tightrope," says Matthew Nordan, computing analyst at Forrester Research. "You have to capture deals that are large enough to be profitable, but you can't upset the channel so they go somewhere else for hardware."

According to Meaux, Compaq aims to double its annual service revenue to $15 billion by 2002 and drive another $85 billion through the channel.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Commentary
The Growing Security Priority for DevOps and Cloud Migration
Joao-Pierre S. Ruth, Senior Writer,  9/3/2020
Commentary
Dark Side of AI: How to Make Artificial Intelligence Trustworthy
Guest Commentary, Guest Commentary,  9/15/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll