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HP Promises Enterprise VARs 38 Percent Discounts On PC Blades

Hewlett-Packard is promising margins of up to 38 points on its PC blades beginning Nov. 1.

"I never thought those words would come out of my mouth in the PC business," said John Snaider, vice president of HP's Personal Systems Group Americas for business PCs, who announced the hefty margins to solution providers attending the XChange '06 conference in St. Louis, held by CRN publisher CMP Technology.

The 38 points represent the discount off the list price that HP will offer to the channel, Snaider said. Typical desktop PC margins are seven points to eight points off the list, he added.

Jennifer Shine, president of eMazzanti Technologies, a Hoboken, N.J.-based solution provider, welcomed the price break. "As you're growing your managed services business, having those kind of elements [blade PCs in the data center] very reachable and very monitorable provides a huge value," she said.

Still, Shine acknowledged that the 38 points off the blade list price likely wouldn't translate to 38 points of margin for solution providers because of discounting.

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