HP has overhauled its approach to market development funds (MDF) by moving from quarterly to six-month projects, scrapping its accrual-based funding in preference of forward-looking "planned MDF" and hiring external marketing agencies to help partners drive leads.
Page Murray, vice president of pan-HP worldwide channel marketing, said that some of the changes have been in the works since last year, while others are only being announced at the Global Partner Conference this week.
For instance, HP informed partners last year that it would be "sunsetting" accrued funds. "We told everyone last October what would happen at November of next year [2015]. There has been over a year to work through that," said Murray.
HP is using the conference to reveal the switch to "planned MDF", which runs on a six-month structure and has specific metrics for success – at least half must go on what Murray called "true marketing initiatives", such as lead-generation.
"At least 50 percent has to be spent on driving demand, and at least half of that has to be strategic, joint initiatives that we work on together.
"Market development funds have to grow the business," he added.
Murray said MDF proposals that better align with HPs own strategy – such as those looking for sales with a cloud component – are likely to get more generous funding.
HP is appointing a range of approved marketing agencies around the world, specialists that can help partners create more effective marketing initiatives without using internal resources. These 'marketing service agencies' (MSAs) have access to 250,000 HP brand assets; and rates have been "brutally negotiated", added Murray.
Murray expects an Australian & New Zealand marketing service agency to be announced in coming months. HP has already appointed 22 MSAs in Europe and four in North America, including the Channel Company, which also publishes CRN USA.
Steven Kiernan is a guest of HP at the Global Partner Conference
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