Hewlett Packard has admitted its Pay for Results (PFR) scheme did not suit its software channel and has set about making changes.
Mike FitzGerald, head of channel for HP Software EMEA, conceded that the current scheme is "not really the best thing" for the channel.
At HP's Software Universe conference in Hamburg last week, FitzGerald outlined changes to list-price discounts and rebates for HP software resellers.
The announcement comes weeks after HP announced that from February, hardware rebates will go via distribution rather than resellers.
"There will be changes to the rebate scheme in the next couple of months to make sure our partners can see their margins upfront," FitzGerald said.
Mark Nutt, technology sales manager at Morse, which has just been named UK HP Software Partner of the Year, said changes are necessary.
"PFR created a challenging environment for HP and its partners. HP has said it will respond to feedback and create an environment where partners feel they can succeed," he said.
FitzGerald also admitted conflict exists between HP direct sales and the channel over large accounts. "If each knows what the other is doing we can avoid conflict," he said.
"However, we can never completely eradicate conflict. All we can do is minimise it. If there is conflict, we will look at ways of bringing resellers in on the implementation or giving them alternative leads."
Kasper Rorsted, HP's managing director EMEA, promised the same approach for the firm's SME channel.
"We are the largest SME supplier in the world. $21bn worth of HP's sales are based on SME business, so we are trying to [avoid] competing with each other," he said.
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