HP Software goes after mid-sized enterprise market

HP Software looking for market lead in mid-size through new solutions and channel initiative

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HP Software goes after mid-sized enterprise market HP Software wants to take the lead in the $7.5 billion mid-sized enterprise software market says Martin.
By  Mark Sutton Published  May 24, 2010

HP's software division has unveiled a new initiative to target the $7.5 billion medium-sized enterprise market (MSE).

Hp Software and Solutions Group says that the ten.to.one initiative will aim to provide solutions tailored to meet the needs of businesses with one thousand to ten thousand employees, along with support for channel partners to help them reach this segment.

The company has formed a new unit within its software business, called Commercial Solutions, to drive the initiative.

Speaking at a press launch in Germany, Jonathan Martin, vice president and general manager, Commercial Solutions, said that while there were many players offering software in the MSE segment, HP intended to take the lead through offering solutions that would be quicker and easier to deploy, and enable companies to deploy and manage their IT infrastructure better.

"This new initiative marks the biggest change in our go to market since the inception of [HP] Software. We identified last year a new opportunity, a new segment that we describe as the mid-sized enterprise, that holds a significant new opportunity for us. Our goal is to become the number one in this segment as we are in the large enterprise, within the next three years," Martin said.

HP will be offering software selected from its existing portfolio of over one hundred solutions, which will then be re-priced, repackaged and repositioned to offer a Business Technology Optimisation (BTO) process that is more suited to MSEs.

According to research carried out by Forrester on behalf of HP in April, IT organisations in the MSE segment are more business oriented, and better integrated with the rest of the business, than IT shops in larger enterprises. The study of 500 IT decision makers from MSEs in the G8 and BRIC countries also found that the segment was more receptive to new means of solution delivery like SaaS, but also faced challenges from reliance on software that is shipped with hardware or comes bundled with an OS, leading to piecemeal deployments of management and security solutions, with little or no integration.

To address this, the ten.to.one initiative will include new, existing and improved software in areas such as management, testing, deployment and protection of IT infrastructure. Security and risk management were identified as top priority for midsize businesses, with data protection and backup seen as key technologies to address risk management. HP has released an enhanced version of its Data Protector has been enhanced to give customers eight methods of protection when running environments using Microsoft Hyper-V, offering the  most complete backup integration for virtualization.

HP has also introduced new solutions, including HP SiteScope Operations Manager, to give better monitoring of IT infrastructure and applications, and will also introduce new ways for customers to access technology, including managed services provision from HP partners, more cloud offerings, initially just in the US, and increased offerings from HP Financial Services where available.

The initiative will also have a major component catering to channel partners, to help them to deliver these new solutions. The survey also found that MSEs generally prefer to work with channel partners that can provide an end-to-end solution, and HP expects 90% of the revenues from this sector to come from channel partners.

The channel roll out includes increased training opportunities for partners, bringing them in line with HP's own sales force in terms of training; growth programs to drive partner business, including marketing automation tools which will allow partners to carry out demand generation activities like mail outs, landing pages and automated co-branding HP collateral, and a dedicated social network so partners can connect with HP experts, and with each other to collaborate.

 

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