HPE to have missed server No.1, 5% rebate ‘promotion in mid term
Lim Seong Yeob | starleaf@ | 2017-07-10 11:30:14
Hewlett-Packard Enterprise (CEO Ham Gi-ho, hereinafter referred as HPE), which gave Dell EMC first place in the domestic server market in the first quarter of this year, has started to recover its market share of hardware (HW) market with big promotional offensive.
According to the HPE `SMB Program Guide for 2017,` which was acquired by the Digital Times on July 9, HPE will pay a 5% rebate for SMEs (Small Deal) for 6 months from the second quarter. There are 1244 partners for rebate coverage. The number of rebate SMBs was 3025 in Korea. Rebate is eligible for all hardware (HW) products except network solution Aruba. Server, network, DC networking, HEP Point Next, package support services, and package consulting services all apply.
HPE stated, "This promotion has started a special incentive program to strengthen reseller`s solution sales capabilities and promote HPE`s server and storage sales. HPE invited partner companies last month to hold seminars and provide technical training for server, storage and network channel sales representatives.
HPE partner representative said, "When it sells servers and storage products priced at KRW 30 million for a small business, we have a rebate of about KRW 1.5 million. Compared to the 2-3% HPE has significantly enhanced the promotion."
HPE sees small businesses as being targeted for promotions rather than selling enterprise-class products specifically for large enterprises, and sees the industry as a stepping stone to recover the recent sluggish performance in the HW market. Small business is traditionally a sales floor where Dell EMC has been strong. According to IDC`s domestic server market volume released earlier this month, Dell EMC accounted for 29.3% of the market in Korea.
That is 1.1% higher than HPE`s market share of 28.2%. Another industry observer said HPE, which had dominant dominance in the domestic server market, could not help but be forced to use a promotional card in the face of Dell`s EMC. "HPE has set its target target specifically and expects market share expansion.”
Especially, with the expansion of HPE`s rebate, partners will have the opportunity to purchase HPE servers at a lower price for their customers, while keeping their pricing policies in circulation. In addition, HPE is expected to be able to secure small and medium-sized customers who used a Chinese manufacturer`s ODM server.
Industry expert analyzed, "For customers, there is a product reliability issue for Lenovo and Huawei servers, and there is a price gap between purchasing HPE and Dell EMC products. HPE has the potential to lower its price while maintaining its quality. There are aspects that HPE finds on rebates and reflects customers` needs."
There is a positive opinion that HPE is protecting its partner ecosystem while domestic HW market is becoming a chicken game type and vendors` bleeding competition is intensifying.
Industry expert also said, "Partners are getting a 5% margin when they sell to customers. HPE is committed to protecting its partners in the stagnant domestic HW market as they give up their margins."
By Lim Seong Yeob starleaf@
[ copyright ⓒ The Digitaltimes ]
According to the HPE `SMB Program Guide for 2017,` which was acquired by the Digital Times on July 9, HPE will pay a 5% rebate for SMEs (Small Deal) for 6 months from the second quarter. There are 1244 partners for rebate coverage. The number of rebate SMBs was 3025 in Korea. Rebate is eligible for all hardware (HW) products except network solution Aruba. Server, network, DC networking, HEP Point Next, package support services, and package consulting services all apply.
HPE stated, "This promotion has started a special incentive program to strengthen reseller`s solution sales capabilities and promote HPE`s server and storage sales. HPE invited partner companies last month to hold seminars and provide technical training for server, storage and network channel sales representatives.
HPE partner representative said, "When it sells servers and storage products priced at KRW 30 million for a small business, we have a rebate of about KRW 1.5 million. Compared to the 2-3% HPE has significantly enhanced the promotion."
HPE sees small businesses as being targeted for promotions rather than selling enterprise-class products specifically for large enterprises, and sees the industry as a stepping stone to recover the recent sluggish performance in the HW market. Small business is traditionally a sales floor where Dell EMC has been strong. According to IDC`s domestic server market volume released earlier this month, Dell EMC accounted for 29.3% of the market in Korea.
That is 1.1% higher than HPE`s market share of 28.2%. Another industry observer said HPE, which had dominant dominance in the domestic server market, could not help but be forced to use a promotional card in the face of Dell`s EMC. "HPE has set its target target specifically and expects market share expansion.”
Especially, with the expansion of HPE`s rebate, partners will have the opportunity to purchase HPE servers at a lower price for their customers, while keeping their pricing policies in circulation. In addition, HPE is expected to be able to secure small and medium-sized customers who used a Chinese manufacturer`s ODM server.
Industry expert analyzed, "For customers, there is a product reliability issue for Lenovo and Huawei servers, and there is a price gap between purchasing HPE and Dell EMC products. HPE has the potential to lower its price while maintaining its quality. There are aspects that HPE finds on rebates and reflects customers` needs."
There is a positive opinion that HPE is protecting its partner ecosystem while domestic HW market is becoming a chicken game type and vendors` bleeding competition is intensifying.
Industry expert also said, "Partners are getting a 5% margin when they sell to customers. HPE is committed to protecting its partners in the stagnant domestic HW market as they give up their margins."
By Lim Seong Yeob starleaf@