August 08, 2008, 5:32 PM — Does it bother anyone else to see "small business" defined as "500 or fewer employees"? I don't know about you, but a company with 500 employees is not a small business in my book. But I digress. HP has apparently made a sweetheart deal with CDW to target small businesses with 500 or fewer employees.
Under the deal, HP co-funds 110 new HP-only salespeople for CDW.
Nothing against CDW mind you, I'm sure they're all great guys, but they are the largest channel partner in North America. The deal virtually hands the SMB market for HP to CDW on a platter. What does that leave for smaller channel partners? The "little guy" often doesn't have the resources to compete for enterprise business, and now the SMB market is going to be virtually dominated by a single large partner.
According to a memo leaked to CRN, the deal hand CDW a target customer list of more than 500,000 new customers, while smaller SMB solution providers partnering with HP have historically received nothing in the way of leads.
This is of course, a great deal for one reseller, but it will come at the expense of all the other smaller resellers out there.