7 April 2008
The roadmap for Hewlett-Packard’s thin clients will be outlined in the summer. Sources expect it to rationalise distributors, having inherited two additional partners from the acquisition of Neoware.
In the last quarter HP integrated Neoware staff and internal systems but insisted it was too early to say whether there would be a reduction in the distribution channel, which totals seven partners.
"There will be a joined up plan once the roadmap for the products has been outlined by the early summer," said Andrew Gee, HP UK and Ireland sales manager for remote client solutions.
Prior to the acquisition, HP thin client distributors included Computer 2000, Ingram Micro, CCD, ETC and Westcoast, and Neoware partners included Centia and Getech.
"I don’t know if we [have too many distributors], it is not just down to the product sets but whether those companies want to engage with HP. Engaging with HP is very different to Neoware," said Gee.
From a distribution standpoint, HP has a minimum revenue threshold, stocking and reporting requirements. Gee said Neoware – his employer prior to the acquisition – had not asked that of distributors.
HP usually operates with no more than five distributors for each exhibit, and sources in the vendor’s channel expected two of its seven thin client wholesalers to get the boot. "The market is just not big enough."
The UK thin client market grew 21.4 per cent last year to 206,000 units, said analyst firm IDC. Wyse led the market with 32.6 per cent growth and 35.8 per cent market share. HP grew sales 26.8 per cent and held 15.4 per cent share.
IDC analyst Nancy Taylor said the market had "not shifted enormously" year-on-year, but she noted a rise in Government projects as thin clients used less power than PCs and could help to reduce its carbon footprint.
