Welcome Mira Perry with this guest post. Mira is a Sr Analyst in IDC's Software Sales Channels Program in my Software Business Solutions Group. Catch up with her on Twitter @miravperry.
HP's new SMB Elite designation in PartnerONE is a novel and exciting effort to approach the SMB market. The announcement comes less than two months after HP named Meaghan Kelly as VP of SMB Channel Sales and Strategy. According to an HP spokesperson, the SMB Elite designation will be available May 1 "for partners who are really committed to the space, with demonstrated competency and revenue mix focused on SMB." HP's new designation gives partners many reasons to applaud. But will interested partners quickly move to embrace the new designation or fall short of meeting revenue and competency requirements?
Those who follow SMB channel initiatives will be tempted to compare HP's SMB Elite with Microsoft's Small Business Specialist Community (SBSC) program but the two programs differ remarkably from member benefits to entrance requirements and target audience. Time will tell whether one formula is more effective than the other.
Partners achieving the HP SMB Elite designation will enjoy the "holy trinity" of partner benefits including SMB customer leads, an account manager, and the marketable SMB Elite designation. Recent surveys place leads near the top of a partner's wish list, trumped only by an account manager/ inside salesperson who serves as the partner's single point of contact. In my years at Microsoft running their SBSC program, leads and a single point of contact continue to top the wish lists of SBSC members, many of whom also report joining SBSC for the implied credibility associated with the logo. Similar to Microsoft, secondary benefits for HP SMB Elite members include co-marketing funds, a partner locator, and SMB-relevant promotions. HP has "nailed" the benefits aspect of the designation which should generate a steady stream of partners interested in becoming SMB Elite.
I wonder whether all interested partners will qualify. Can the small reseller whose business is built on the SMB customer meet the threshold revenue requirements? Will this initiative single out only large partners, or worse, large partners paying lip service to the SMB market? An HP spokesperson assured me that "SMB is attainable by all partners, they just have to meet the requirements." In other words, HP is not playing a game of exclusion, but they do want validation of a partner's capability to service SMBs. It's a subtle difference.
HP does not make specific details about the entrance requirements available to the public, but they were willing to disclose that prospective SMB Elite designees must pass tests to attain certification requirements thereby proving competency in the space, and meet a revenue threshold. Because Elite is the top level of PartnerONE, it is safe to assume that these are not the entry-level type requirements of Microsoft's SBSC program.
To fully appreciate HP's initiative, it is essential to set aside pre-conceptions based on Microsoft's SBSC model which was developed as a 'small businesses working with other small businesses' stepping stone for Microsoft's non-managed partners to become certified. HP's strategy is different. For HP, "size of the partner doesn’t matter, what matters is their customer focus." Yet HP appears to be targeting partners who have established themselves as the best of the best, the Elite tier, to service their small business customers. In most circumstances, this will be a vastly different partner group than Microsoft's target. Of course the first year of Microsoft's program was dominated by Gold-level partners who continue to share SBSC membership with partners at the Registered and Certified levels. Sometimes partners belie even the best strategies.
Faced with hurdles, however, smaller partners may choose to ignore incentives to join HP's new SMB designation despite tempting benefits if they expect that they can maintain their current customers. While revenue targets can pose an obvious challenge for some smaller resellers, exams, surprisingly, can be similarly problematic. I have encountered small partners whose unwillingness to sit for an exam can not be mitigated with any amount of free exam prep, free exam vouchers, or even $200 gift cards. It is extremely difficult to pull a person who bills on an hourly basis away from work to prep for and take an exam.
At the end of the day though, it's about increasing customer satisfaction by helping customers find a partner who understands and will service their unique business needs. Creating market value and credibility for the designation necessitates that partners demonstrate competence in SMB-related technologies. The exam requirement is essential for the protection of the customer, despite anticipated partner protests.
Where HP has more flexibility is in the revenue requirements. Ideally, HP will unveil revenue requirements attainable by an optimal mix of partners: from the large resellers with countless capabilities to the fellow small or mid-size business with a local presence, an understanding of the SMB experience, and a willingness to service, even prioritize, smaller deals. By betting on the growth potential of small partners, HP will still be able to recognize the SMB investments of larger partner organizations while offering customers a range of SMB experts to meet their needs.
Despite the anticipated challenges associated with the launch of any new initiative, the SMB Elite designation in PartnerONE is a commendable initiative from HP. Partners will applaud the benefits associated with SMB Elite and customers will appreciate the vetting and validation offered by the designation. And, if the initiative is attainable by the variety of small and large partners servicing the SMB market, the company can anticipate even more accolades for their investment in SMB.


