HPE’s Bold Bet: Supercharged Partner Incentives Signal Aggressive Market Push

According to CRN, HPE’s new Partner Ready Vantage program represents the most substantial partner incentive improvements in decades, with performance-based incentives that can be up to 50% more lucrative than previous programs. Pat O’Dell, head of HPE’s North America Partner Advisory Council, described the program as “substantial” rather than marginal, emphasizing increased rewards for both selling more and securing new business. The initiative, developed under channel leaders Simon Ewington, Jeremiah Jenson, and Jesse Chavez, simplifies the program while making it more lucrative to sell HPE’s complete hybrid cloud, compute, and networking portfolio. Partners including CPP Associates and American Digital anticipate double-digit growth next year, with the new Triple Platinum Plus program rewarding partners for achieving platinum status across networking, compute, and hybrid cloud. This strategic shift comes as HPE leverages its Juniper acquisition to compete more aggressively in data center networking and virtualization markets.

The Strategic Calculus Behind HPE’s Aggressive Move

HPE’s decision to substantially increase partner incentives while competitors are cutting back represents a calculated bet on market share acquisition during a period of industry transformation. The timing is strategic – with Broadcom’s acquisition of VMware creating uncertainty for many customers and partners, HPE is positioning itself as the stable alternative with superior financial incentives. This isn’t just about moving more hardware; it’s about capturing mindshare and wallet share during a vulnerable period for competitors. The program’s structure, particularly the emphasis on new business acquisition, suggests HPE believes there’s significant untapped market opportunity that can be unlocked through properly motivated channel partners.

The Complete Portfolio Play: Beyond Piecemeal Solutions

What makes this incentive program particularly powerful is how it aligns with HPE’s evolving portfolio strategy. The Juniper Networks acquisition finally gives HPE a credible data center networking story to complement their compute and storage strengths. Partners can now present a comprehensive infrastructure solution rather than piecemeal components. The Triple Platinum Plus program specifically rewards partners who achieve excellence across all three domains – networking, compute, and hybrid cloud – creating natural incentives for solution selling rather than product pushing. This holistic approach addresses a longstanding weakness in HPE’s market positioning against competitors like Dell Technologies and Cisco.

VMware Disruption Creates Perfect Storm for HPE

The timing of this program rollout couldn’t be more opportune given the ongoing disruption in the virtualization market. With Broadcom’s changes to VMware licensing and partner programs creating widespread uncertainty, HPE’s VM Essentials offering represents a strategic beachhead. Partners like American Digital explicitly noted that “customers are screaming for an alternative,” and the enhanced incentives make it financially compelling for partners to invest in displacing VMware installations. This represents a rare window where HPE can leverage both financial incentives and market dissatisfaction to gain significant ground in the virtualization space, potentially reshaping competitive dynamics for years to come.

Sustainability Questions and Long-Term Implications

The critical question facing HPE’s strategy is sustainability. While partners are understandably enthusiastic about dramatically increased incentives, the financial model must eventually prove sustainable for HPE’s bottom line. The company appears to be betting that market share gains and increased attach rates across their portfolio will justify the increased partner costs. However, if the program succeeds primarily in shifting existing HPE business to higher-margin configurations rather than driving genuine new customer acquisition, the return on investment may prove disappointing. The program’s success will ultimately depend on whether it can drive the 10-15% growth partners are projecting while maintaining healthy margins for both HPE and its channel.

Anticipating Competitive Countermoves

HPE’s aggressive move will almost certainly trigger responses from major competitors. Dell Technologies, with its deeply entrenched channel program and broad portfolio, has the resources and flexibility to match or exceed HPE’s incentives if they perceive significant threat to their market position. Cisco, while historically more focused on direct sales, may need to reconsider its partner economics as HPE leverages Juniper’s networking credibility. The coming 6-12 months will likely see intensified competition in partner incentives across the infrastructure landscape, potentially reshaping channel economics industry-wide. HPE’s gamble is that their first-mover advantage and integrated portfolio will prove decisive before competitors can effectively respond.