Friday, July 24, 2009

Xerox Results: MPS Bright Spot and HP Comments

Xerox provides great information in their quarterly reports and their conference calls. The links to their slide deck and transcripts of their conference call on quarterly results are below. I encourage you to read them.

Some of the highlights of the presentation and call:
· Segment 2 – 5 installs up 10%
· Service annuity revenue down 4% in constant currency (CC) Note :(Xerox is global, and therefore has currency risk. The 4% decline is in constant dollars year over year (YOY)
· Pages declined by 5%
· Color pages grew 12% YOY
· Color equipment declined 21% CC
· Segment 1 installations declined 84%
· Office color MFD declined 21% with color printers declining 42%
· Balance Sheet improvements and expense reduction drove better margins and strong cash flow
· MPS has a $3.5 billion run rate and is growing

The CEO’s take on MPS:

Ursula M. Burns

About $3.5 billion on the MPS business the whole MPS businesses, large and small MPS business about $3.5 billion. It is growing it is a stronger growth engine or being impacted less than our equipment business. So it's an area of strength for us. By the way, these are global businesses as well. It's something that we practice around the globe. I think that's what you asked as well.

And on HP’s new MPS initiative:

Chris Whitmore - Deutsche Bank Securities

Just a follow-up on that, HP recently held a call which seemed to place a bull's eye on both your production business and your office business in terms of their expected growth going forward. What do are you seeing from HP, and maybe can you specifically address how you complete against Indigo in the high end production market.

Ursula Burns

What we're seeing from HP is their focus on our business, as you said, and they recently announced a managed print service offering that we've had in the market for quite a while. We are the leader there, as I pointed out when I was speaking earlier. So what we see in HP is trying to catch up with the position that Xerox has both in the production space, in the managed print services space, in the A3 MFP space across the board. We don't take them lightly, we are very confident based on our investments, our history, what we're doing in the marketplace today that we can effectively compete against HP.

Chris Whitmore - Deutsche Bank Securities

Are they competing more with price or more with service and solutions?

Ursula M. Burns

What we're seeing in managed print services they're competing right now with words so that's right now with an advertisement so we have to see that in the marketplace. As I said on managed print services we are very, very confident there. In the high end space, which I didn't answer to that portion of the question before, we are very, very pleased with iGen position, the install base, the activity we got in quarter two, very strong. We do not see them positioning, competing with us on price.

As you know, they are positioned in a different place in the marketplace our AMPBs and usage patterns for our iGen 4s are higher than their Indigo devices. But we have a breadth of portfolio that allows us to complete effectively and surround them, get right on top of them. So we're very - it's a tough market out there, we are very confident in the position that we have in both high end color and management services and A3 Office against HP and other competitors as well.

I encourage you to spend time reviewing the slides and to read the entire call transcript. You should also add yourself as a follower of this blog.

Link to slides:

Link to call transcripts:

Wednesday, July 22, 2009

A Statement To Live By

“Pain is temporary. Quitting lasts forever.”

Lance Armstrong (1971 – )
American cyclist
seven-time Tour de France champion and cancer survivor

Gartner Released Prediction of Print Technologies

By 2012, over 75% of all printed bills and statements in the U.S. will have advertisements for products and services, generating more than $2.8 billion in ad revenue for billers
-Do you sell variable data?

By 2012, over 30% of enterprise customers with document intensive business processes will use applications or custom workflows deployed on MFPs to lower paper process costs and improve worker productivity
-Are you selling advanced capture and routing?

By 2012, over 70% of businesses with more than 250 employees will adopt a managed print services program
-This is your core; are you selling MPS (Attend the BTA MPS Sales Workshop)

By 2012, over 80% of enterprise businesses will be using fax servers

Ricoh Makes Another Dealer Acquisition

Ricoh announced it has made another dealer acquisition.


Purchased Automated Business Products, a Savin dealer, based in Salt Lake City, UT

Owners wre Lee Christensen and Mike Archer

Lee and Mike will remain running the new wholly owned subsidiary and the current RBS branch in SLC

This current ABP was founded in 1999 and has 63 employees

The original ABP was founded by the Archer family and had locations in Utah, Colorado and others, before selling out to IKON.

Rain On Me

IKON’s warehouse in Orange County, Florida, had its roof ripped off and trailers upended during a severe storm last week. 16,792 copiers were exposed to rain.

Monday, July 13, 2009

CIT: Will They Survive

Talk to any dealer or reseller today and they will tell you that their biggest issue is getting a deal approved. Finance companies have black listed many industries and some large providers have become fickle, pulling out of the industry and then reentering, while others have exited the small ticket leasing business completely. Add inventory floor planning issues to the mix and life has become difficult for many.

It looks as if things will only get more difficult; it was reported over the weekend that CIT had hired a prominent bankruptcy firm. For more details on the possible bankruptcy follow the link below.,ge,wfc,xlf,skf,fas,%5Edji&sec=topStories&pos=3&asset=&ccode=

HP Stepping Up The Aggression with MPS

Today's Wall Street Journal (Monday July 13) featured a full page color ad "Introducing the HP Printing Payback guarantee" that promises to "...cut your printing costs or....cut a check."

When you go to the web page for the program ( you find a series of case studies citing large companies that saved millions by implementing an HP MPS program.

Friday, July 10, 2009

Document Solutions Daily

Document Solutions Daily

On an average day Document Solutions Daily summarizes over 20 articles that could effect your business and the businesses of your colleagues throughout the industry. If you missed a month of Document Solutions Daily, you missed on the order of 450 industry news items, product release notices, product reviews, white papers, case studies or market studies that you should probably be aware of!

It's how I stay up on industry information....quickly and inexpensively.

Thursday, July 9, 2009

CFO Magazine and MPS

Below you can find a link to an article in the May, 2009 issue of CFO Magazine focused to savings in the technology area. “Hiring Managed Service Providers” is one of the seven highlighted areas, and managed print services is the example under the MS heading.

But before you leave add yourself as a follower to this blog and to the group “Print Management” on Linked In.

Don’t get hung-up on the source of the article. Although published in CFO, you will note that there is only a single reference to a CFO in the entire article, and even that is more of a technical expert role to the CTO. All of the savings mentioned were driven by the CIO’s team. In over 60% of engagements the decision to enter an MPS agreement is made inside of the CIO’s organization: They own the budget for acquiring and supporting technology.

How Well Do You Understand the “C” Level?

Consultants, trainers, and authors earn a nice living pontificating about how to sell to the “C” level. If you have spent any time in sales you have heard how only “C” level employees have the ability to weigh the business impact of your product or service; you have also heard that the CFO is the person you want to speak to about saving money.

I believe there are few simple and unilateral solutions to complex problems. Unless your target market is small entrepreneurial companies, the belief that only a handful of employees truly understand how to evaluate business impact is misplaced. It may border on naïve and could be insulting to the people that actually make the decision regarding your product or service.

Saving money is not the sole purview of the CFO. Any business manager with control of a budget wants to find better value where they currently spend money so that they can fund other projects. Maybe you can save them money in their imaging and printing fleet that they can spend on a virtualization project?

If you sell a product or service that can have strategic impact or significant risk for a company then the decision will be made in the “C” suite. Trying to convince a company to adopt a six sigma initiative? Better call on the CEO. It is extremely expensive in the near term with the payback being long term, culture changing at every level of the organization, and has a high rate of failure. The CEO’s job could be on the line if it fails.

The key is to identify the person that has the budget responsibility for what you are selling. If you are selling training you will want to speak to the director of training and development. If you are selling office supplies you will be talking to purchasing. If you are selling liability insurance you will want to speak to the company’s risk manager. If only the “C” suite could make these decisions then it would not be logical to have these other employees; would it?

You can raise your entry point but only if you change your value proposition. MPS has changed the value proposition for purchasing printers, copiers, supplies, services, and some software. Prior to MPS these items were most frequently purchased by low level IT or purchasing. As part of an MPS agreement you can raise the value proposition to the level of middle management: Most frequently the director of IT. But it is not a highly strategic or risky endeavor so the “C” suite, except in the smallest of companies that would qualify for an MPS agreement, will not probably not be involved.

I realize it is human nature to look for exceptions so I will state up front you will find them. In a law firm you will need to be on the “business side” of the decision process so you will probably be calling on a COO or CFO. Then there are the “C” suite executives that have developmental opportunities in the delegation area and who will want to be involved in many tactical decisions. But for the most part if you identify the person that controls the budget, and your value proposition does not have an impact on the company’s strategy or involve high risk, you are at the correct level.

Saturday, July 4, 2009

Xerox's Managed Migration

Departing chief Anne Mulcahy on why printing less is good business for her company.

NORWALK, Conn. -- Anne Mulcahy came to the leadership position at Xerox in the midst of a financial crisis when she was a little-known sales executive. Named chairwoman and chief executive in 2001, she faced an SEC investigation of the company, a loss of market share, restated earnings and a downward-spiraling stock price. She sold assets, pared debt and rebuilt Xerox's product line to include more services and advanced industrial printers. She spoke to Forbes in May, just before announcing she would resign as CEO effective July 1. She remains chairwoman of Xerox. This is a transcript of a recent interview with Forbes' Quentin Hardy.