Details:
- Expansion of 25 year relationship between Canon and Hewlett Packard
- This is a one-way agreement, as Canon will not have access to HP devices
- HP will sell Canon branded B/W and color copiers from segment 2 up through segment 6
- Initially, HP will market the Canon brand, but then will switch to offering the Canon copiers with the HP name on them as soon as it develops HP JetDirect based print controllers for them
- All current HP LaserJet and Color LaserJet devices are made by Canon
- HP will also resell Canon’s imageWARE and MEAP solutions
- Canon is looking gain back marketshare when it lost all IKON locations when IKON sold out to Ricoh, and when DANKA sold out to Konica Minolta in the U.S.
- This is fifth time that HP has attempted to enter the office copier space
- HP will use expanded product offering to grow its Managed Print Services program, “creating an integrated platform and brokering a network of service partners that will enable resellers to sell contractual print offerings"
- "create new global business unit”, called Managed Enterprise Solutions, led by Bruce Dahlgren (former Lexmark executive) and headquartered in San Diego, CA
- HP, which recently acquired IT services provider Electronic Data Systems (EDS), will use 500 certified EDS account managers to sell managed print services with this new expanded device offering to companies in the U.S. (EDS currently accounts for 20% of HP’s MPS sales)
- While HP will do the billing for contracts that include Canon branded devices, HP will subcontract the service to either Canon branches or Canon dealers, based on customer request
- Customers will contact HP to place service calls, and HP will then dispatch to Canon branch or dealer
- HP claims to have 2000 customers under MPS contracts, including 450,000 devices and 18 billion pages per year.
- HP claims to win 60% of all MPS bids it participates in.
