Healthcare (hospitals) and education too will adopt this opex model besides governments' vast programs announced recently. We see this model percolate across every single device that we have. It has unlimited potential and possibilities.
Will it require a tweak of your sales and technical as opex model needs additional convincing and more face time with CIOs and CTOs of end organizations?
At one level, the sale process will undergo a serious shift. For sale of devices, CIO and CTO would be the key persons to interact and they would allocate the necessary budgets. But as the business model shifts to Device-as-a-Service, many C-level executives get involved like CFO, CMO, application driven people etc. CIOs and CTOs are involved too as with Capex model.
We are ensuring our sales team are stepping up to speak their new language to CIOs and also sales, marketing and other teams at the customer end. We will have to go through this transition and transformation of our sales team to play this game well.
Worldwide PC shipments declined 8.3 percent in Q4/ 2015 versus Q4/2014 as per Gartner that marked the fifth consecutive quarter of decline. Is HP Inc's 'Device-as-a-Service' launch intent to arrest this downward trend?
We see the India PC market growing for us and HP is maintaining its leadership position and accelerating growth in the region.
The opex model we believe will help increase sales but importantly inflict less burden on Indian enterprises to spend capex on devices. However the big challenge for we as a company or as an industry as whole is the expansion of the market (PC and Printers). Any business model, product category or pricing mechanism that helps expand the market is a good move. And device-as-a-service accelerates PC and Printer market as it is convenient for enterprises to consume technology as opex model.
How will your channels' playground change?
Channels will sell this service too in near future. Right now, it is a direct model for higher end of enterprises. We have an extensive reach and coverage across India through channels for our existing products and solutions. Competent channels will be trained adequately before they start selling 'Device-as-a-Service'.
The channel partner we believe will make more margins with this offering as the whole services proposition around it remains very strong. We are moving from transaction strong from contractual. The life cycle management with 'Device-as-a-service' leads to more customer stickiness. HP finance as in the past will continue to be part of this new model for benefit of channels and their customers.
Source: Computerworld India
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