In the past, we ve treated the state and local market very opportunistically. Now, we have dedicated people to that market instead of as part of other business units. HP s most successful programs, he said, are focused on a particular market, allowing the company to be more attentive and accountable. State and local government accounts at Microsoft were divided among 18 nationwide sales districts, said Frank Giebutowski, who leads Microsoft s unit. Over the past two years, resources to the state and local market increased by 300 percent, but that happened because of independent decisions by the districts general managers.
Government is the team s only focus.
Both Giebutowski and Gumport said governments operate differently from commercial clients because of legal constraints, budgeting processes and procurement rules. Both companies structured their state and local teams in a similar fashion. Microsoft has teams of seven to 11 people in four geographic regions, while HP has three geographic regions with eight to 10 people. Both companies increased technical expertise and other support services for the state and local sector and both companies developed partnerships with other companies as a way to penetrate the market. For example, he said HP is partnering with a Utah company called Kiva that creates automated permit and inspection systems.