Use case: Hewlett Packard Enterprise annuity management + channel support programme

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HPE decision channel support

USE CASE: HEWLETT PACKARD ENTERPRISE ANNUITY MANAGEMENT + CHANNEL SUPPORT PROGRAMME

What was needed was a service specialist with 100% focus on annuity management who had the knowledge and track record to effectively support HPE channel partners and help them to successfully renew their service and maintenance agreements. Familiar with the success HPE Switzerland had experienced a few years earlier when partnering with Tesedi, ‘we reached out to HPE Switzerland and subsequently to Tesedi to see if their annuity management solution would also be applicable to the German market’, explained Peter Steensma, TS Channel Sales Manager for HPE Germany.

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Customer Background

Hewlett Packard Enterprise is a global technology company offering a wide range of IT hardware and software products, IT services and IT solutions. With over USD 30 billion in annual sales, and active in more than 80 countries, HPE follows a channel distribution strategy to bring its products and services to market.

In Germany, HPE works with over 400 channel partners who sell HPE products to enterprise customers. Within HPE Germany, the Technology Service (TS) organisation is responsible for selling, delivering and renewing IT service, maintenance and warranty agreements for its server, storage, network and software products.

 

The channel annuity management programme we built with Tesedi has been instrumental for Hewlett Packard TS Germany. Since its inception four years ago with the help of Tesedi, we have tripled our channel service revenues from existing customers.

Axel Sidki, Director of Support Sales, HPE Technology Services Germany

 

Annuity Challenge

Multichannel distribution, layers of complex IT landscapes with multiple data sources and points of contacts all combined with constantly changing customer hardware configurations – often requiring different service-level agreements, software and licence updates – made effective annuity management challenging and complex. HPE Germany realised that it’s channel partners needed help in managing their conversions and renewals from their existing service and maintenance agreements.

For example, partners were struggling to receive accurate quotes, were dealing with outdated customer data, were not addressing possible up-selling opportunities and were left with a high administrative workload required to renew their service and maintenance agreements. As a result, renewal rates suffered, channel partners were frustrated and enterprise customers were left without proper service coverage – impacting customer satisfaction. In addition, new business potential was not addressed systematically.

HPE Germany was searching for an annuity management expert who would be able to offer a solution that could help its HPE channel partners to manage their renewals from their service and maintenance agreements.

 

Tesedi

Tesedi is an authorised Hewlett Packard service-only distributor. Thanks to this clear focus, Tesedi does not sell any hardware or software products – Tesedi is the trusted service expert for both the product distributors as well as the channel partners.

Tesedi is an authorised Hewlett Packard service-only distributor

Service-only distribution model

 

Tesedi allowed us to explore a totally new way in our service revenue management. Their focused service-only distribution model not only ensured that HPE enterprise customers received optimal service coverage, but it also enabled our resellers and partners to renew their service and maintenance agreements in time without any of the time-consuming contract management work.

Frank Lutze, HPE Germany / Tesedi Account Manager

 

Tesedi service offering

Supported by a suite of highly specialised IT systems and tools, Tesedi services cover the entire spectrum of the annuity management business life cycle, starting with service and partner on- boarding and adoption – where Tesedi welcomes new service partner while tracking relevant renewal information – all the way to sales enablement, quoting and contract optimisation – where Tesedi helps partners to accurately profile, price and quote expiring agreements.

Annutiy Business Lifecycle

 

We highly appreciate the services provided by Tesedi. We have been working with Tesedi for many years, enabling us to offer our customers the best level of service at attractive prices. We are very happy with our collaboration and appreciate the in-depth expertise of the Tesedi team.

Thomas Zimmer, Chairman of ACP

 

Annuity results

Tesedi focuses on the entire end-to-end renewal process. Applying this methodology ensures that all renewal touchpoints are systematically captured throughout the entire annuity management life cycle. Due to this systematic annuity management, Hewlett Packard resellers are able to fully penetrate their existing installed base while benefiting not only from higher processing efficiency – which in turn results in dramatically reduced amounts of administrative work – but also from more new business by having the support from Tesedi experts to spot up- and cross-selling opportunities. Overall, over the course of more than four years, the Hewlett Packard TS organisation was able to increase its service revenues booked through the channel by over 300%.

Effects on Channel Service Sales Order Volume

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