Pivital wins new 3000 sales
Firm expands from support to take over authorized HW channel
Pivital Solutions CEO
Steve Suraci hears the tick of a different clock than the one which
HP has been counting down for 3000 sales. Less than six months before
new HP 3000 sales will end at HP, Pivital is ramping up its efforts
as the newest authorized reseller of the servers in North America.
Pivital has taken over the system integrator spot in
HPs 3000 hardware channel thats being abandoned by
Dimension Data. Suraci said that Dimension released much of its
3000-capable integration staff which Pivital was working with, and
Pivital saw an opportunity emerging from the situation. It may seem
to be late, but Pivital sees its entry as early in the lifespan of
the 3000 customer
Strategically, we know theres going to be
long-term homesteading customers on the HP 3000 out there, the
CEO said. Even HP is attesting to a quadrant of the market
where people will homestead forever. That is a big portion of the
customer base which we deal in today.
The company had built up a practice of offering
application and then extending MPE support to customers using the
GrowthPower ERP application, moving on in the late 1990s to expand
its customer base beyond ERP sites. We found we were becoming
more involved in the other business aspects of these companies,
Suraci said, leading to partnerships with Minisoft and Cognos, for
But as of late last year, we felt we no longer
had Dimension Data as an outlet to move 3000 hardware to customers.
We needed an outlet to sell hardware and get the deals done.
National hardware partners couldnt interest
Pivital in becoming part of their folds, and HP was willing to let
the 18-person firm with operations across several US states take over
the reseller spot from Dimension Data. Suraci said selling 3000
systems to customers is only the start of what Pivital plans to do
with its new prospect. Selling the last round of new hardware to
sites which need to upgrade from older models lets Pivital position
itself for support business in the future, as well as other hardware
HP has announced it will continue to make N-Class and
A-Class CPUs, IO and network cards, peripherals and memory available
for new sales during 2004, though Suraci said the vendor hasnt
released specifics of how that aftermarket will work with the
authorized channel. The support business that flows from hardware
sales looks to be a more reliable prospect for revenues for Pivital.
Suraci wants HP to see the company as a contender for any third-party
3000/MPE support partnerships HP may launch in the years to come.
Were trying to position ourselves not
just as a reseller between now and Oct. 31, but we want to make sure
HP understands we want to play a long term role with these
homesteading customers, and support is a major portion of that. If
and when the opportunity ever presents itself from HP to authorize a
select group of companies to manage support for them, we want to make
sure they understand we want to play a major role in that.
In the meantime, Pivital is contacting HP 3000
customers to encourage upgrades of the server while the system is
still available new. The newest 3000 system integrator is also
pursuing a place in the HP 9000 sales channel, hoping to become a
source of hardware when a companies begin to move off the 3000.
Suraci said that business interest has increased
since the start of the year. Its been a trend weve
noticed in this budget year. Theres been a significant rebound
in the number of customers actively looking at new servers.
Weve made some significant sales already, and the pipeline is
full of new opportunities. It may look like were getting in the
game late, but to us it looks like were getting in at the right
time. A significant amount of business is going to happen.
On hearing about an estimate from the latest OpenMPE
meeting that 50 to 80 percent of the customer base would be staying
with the platform three to five years, Suraci concurred with the
estimate. Those numbers are realistic to me, he said.
We see very few customers that are in an active migration who
were not already migrating when HP made its announcement.