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HP to examine Care Pack services rebate scheme

Microscope contributor

HP Americas is reviewing the Penetration Rate Index (PRI) used to calculate rebates in the Services Specialisation Programme following partner criticism, in a move that could have implications for resellers closer to home.

The global PRI scheme introduced last November sets out the Care Pack services to hardware attach ratios that Authorised Services Providers must achieve to qualify for sales rebates but many missed the goals last quarter.

The scheme has attracted criticism from resellers on both sides of the pond and according to US reports, Stephen diFranco, HP head of partners for the Americas has committed to delay cutting anyone from the scheme while he evaluates it,.

"We have heard that PRI can be too complicated to understand, too time intensive to manage and too black-and-white on exceptions," he said.

"Based on your input, we have made a decision to delay any impact to partners' ASP status due to low PRI scores," he said, adding it will work with them to raise attach rates and those that hit targets would remain on the scheme.

ASPs in the UK that were told they would be ousted from the scheme this quarter have also been given additional time to improve the attach ratios.

"HP annually reviews whether service specialist partners are meeting criteria under the terms of the SSP programme. Those not meeting all criteria are given 90 days to recover the situation, which most of them do," said HP in a statement.

"Exiting partners may rejoin at a later date," the vendor added but it refused to comment further on the potential impact of the examination of PRI in the Americas.

The criticism of the initiative in the UK has centred on the metrics, which are deemed unfair and out of touch with the way that some large corporate customers procure services.


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