Craig Somerville discusses Hewlett Packard Enterprise's recently announced "shared risk" channel financing model

29 September 2016

HPE puts skin in the game with "shared risk" channel financing

It's a dilemma faced across the channel: vendors demand payment on strict credit terms, but customers want the kind of pay-as-you-go experience offered by AWS. Now Hewlett Packard Enterprise has revealed how it hopes to help partners bridge the gap.

HPE overhauled its Partner Ready program at this month's Global Partner Summit in Boston, including new financing options aimed at managed service providers. The flexible capacity model, due to launch on 1 November, seeks to align partners' data centre operational costs with subscription revenues.

This move toward a shared risk model, which could see HPE co-finance servers, storage and networking gear, caught praise from one of the vendor's longest-term Australian partners, Sydney-headquartered Somerville Group. The IT solution provider runs its own private cloud inside NextDC and enterprise-grade infrastructure – much of it HPE – generally sits on Somerville's own balance sheet, said founder Craig Somerville. "We have been working with vendors and financing organisations to come up with solutions because for the last 10 years, we buy it, we capex it, we turn it into a service model and then we sell it as a consumption model."

Read the full article in CRN Magazine.

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