Any improvement is a good thing - as long as the vehicle includes servicing the New Way of Work and is on a path to a world without paper.
Highlights of the Earnings Call:
Xerox showed resilience in Q2 2023, with equipment sales revenue increasing by 14.8% year-over-year to $420 million due to stable demand and improved product availability.
Xerox anticipates an increase in adjusted operating income margin from a range of 5.0% to 5.5% to a range of 5.5% to 6.0% in 2023, reflecting operational efficiencies and a favorable revenue mix. Free cash flow is also expected to increase from at least $500 million to $600 million.
Xerox completed the donation of its Palo Alto Research Center (PARC) to Stanford Research Institute International (SRI), focusing more on its core businesses. The move resulted in a net pre-tax charge of $132 million, offset by a net income tax benefit of $40 million, resulting in a net after-tax loss on the donation of $92 million.
In the latest edition of 'The Office Tech Tap', we delve into transformative strategies, current industry happenings, and emerging trends that shape the tech industry. Our focal point is Xerox's groundbreaking approach to integrating robotics into their daily operations, a tactic that has improved their receivables by over 30% and refined supply chain accuracy. This in-house triumph turned into a client success story is a model for all copier dealers.
In a climate of uncertainty, we shed light on the implications of Ninestar's import ban on the copier industry. The effect this ban has on industry professionals and how it might influence domestic retailers and offshore providers is a critical aspect of our analysis.
As remote working gains momentum, we explore the rise of backyard offices. These personalized workspaces, designed to offer a perfect blend of convenience and work-life balance, are revolutionizing the home office concept. We question the potential this trend holds for industry growth.
Lastly, we touch upon the intriguing subject of rage rooms and the cathartic destruction of printers. This unique leisure trend, while on a lighter note, raises questions about our relationship with office technology.
Get the latest insights on office technology trends, industry news, and thought leadership at The Office Tech Tap.
"In 2013, workers at a German construction company noticed something odd about their Xerox photocopier: when they made a copy of the floor plan of a house, the copy differed from the original in a subtle but significant way. In the original floor plan, each of the house’s three rooms was accompanied by a rectangle specifying its area: the rooms were 14.13, 21.11, and 17.42 square metres, respectively. However, in the photocopy, all three rooms were labelled as being 14.13 square metres in size.
The company contacted the computer scientist David Kriesel to investigate this seemingly inconceivable result."
This inspired me to call on my new assistant, GPT, and put this together.
Oh kiss me baby kiss me, like you don’t care who knows
Oh love me baby love me like Kennedy and Monroe
Hushed smiles across the table, clandestine meetings. There's something exhilarating about sharing a secret in front of the entire world. Just the two of you. Food's better, the Sun warmer, nights longer.
But affairs have no future.
In the tightly bound world of third-party toner manufacturers, evaporating equipment placements, Monday morning sales meetings, earnings reports, tumbling clicks, and Sunday afternoon barbecues, the copier life is almost too much to bear.
Scandal and intrigue.
"I'd sell Xerox. That's a house of pain." - Cramer
The Xerox affair is a reflection of the industry; Mixed up, ruled by The house of Boys; Desperate.
"As Xerox goes, so goes the industry" or is it "As the industry goes, so go we all."?
Remember when Ricoh bought Ikon? Remember when Panasonic exited?
How about when HP split?
The assimilation of Muratec or the bifurcation of Xerox?
Don't forget the Chinese purchase of Lexmark.
And now, the Xerox, Fuji-Xerox, six billion dollar escapade.
X will fade. The moniker might remain (Lanier, anyone?) but the greatness that was, will be no more.
"The new board - the majority now consisting of directors backed by Icahn and Deason - will begin evaluating strategic alternatives; Icahn and Deason have said XRX could be sold to a competitor or private-equity firm."
"Sold to a competitor..." HP?
"...or private-equity firm..." Blue Horseshoe loves Anacott Steel?
So what will be the next shoe to drop? Will Ricoh succumb?
Will Sharp or Toshiba bail? Can K/M survive? Canon? Truly, everyone(except one) is circling the drain.
Those are negative operating profit figures.
For now, sit back and enjoy yet another, delicious scandal.
From one of many articles:
-‘Sleepless Nights’ and 'Project Juice'
"... Dec. 7, 2017, letter written by Xerox director Cheryl Krongard to the company’s chairman Robert Keegan, titled “4 sleepless nights”. In that letter, Krongard called Jacobson a “rogue executive” who disobeyed the board to secretly negotiate a deal with Fujifilm.
In the letter -- purportedly sent less than two months before Xerox agreed to the deal -- Krongard also writes: “This board exhausted every ounce of patience and coaching to make our current CEO a success. We then decided, unanimously, for a variety of reasons, he was not the leader we need.” Krongard adds that the company had identified a CEO replacement who, she says, Keegan had said was “head and shoulders better than Jeff”.
The letter continues: “Jeff was told by you, as directed and supported by the board, that the board was disappointed by his performance and would likely look at outside talent. Additionally, you told him in no uncertain terms, that he was to discontinue any and all conversations with FX and F regarding Juice. He blatantly violated a clear directive”.
Project Juice was the code name given to deal discussions, while F and FX refer to Fujifilm and the Fuji-Xerox joint venture, respectively.
Latest Update, 5/13 -
Xerox (NYSE:XRX) says it has reached a settlement agreement with investors Carl Icahn and Darwin Deason and will end its merger deal with Fujifilm (OTCPK:FUJIF, OTCPK:FUJIY). XRX says CEO Jeff Jacobson has resigned and John Visentin, a former tech executive who had been working with the activists, will become the new CEO. XRX appointed five new members to the board, including Icahn Enterprises (NYSE:IEP) CEO Keith Cozza as Chairman, and five existing members resigned in addition to Jacobson. The new board - the majority now consisting of directors backed by Icahn and Deason - will begin evaluating strategic alternatives; Icahn and Deason have said XRX could be sold to a competitor or private-equity firm.
Xerox shareholders to receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, and 49.9% of the combined company; Fujifilm to own 50.1%
Combined company to deliver at least $1.7 billion in total cost savings, with $1.2 billion to be achieved by 2020
Accelerates path to revenue growth through global reach, industry-leading scale and enhanced innovation capabilities
Well-positioned to lead in growing business areas such as high-speed inkjet, industrial print and workplace solutions, while leveraging Fujifilm's extensive technologies
Combined company will have enhanced financial flexibility for future growth investments and capital returns
Combined company will have dual headquarters in Norwalk, CT, U.S. and Minato, Tokyo, Japan, and will maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions
FUJIFILM Holdings Corporation (“Fujifilm”) (TSE: 4901) and Xerox Corporation (“Xerox”) (NYSE: XRX) today announced that they have entered into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture.
On July 30, 1976, American Bruce Jenner wins gold in the decathlon at the Montreal Olympics. His 8,617 points set a world record in the event. Previously identifying publicly as male, Jenner revealed her identity as a trans woman in April 2015, publicly announcing her name change from Bruce to Caitlyn in a July 2015 Vanity Fair cover story.
Everything changes, baby that's a fact - when we refuse to see the impact of the shift, we call it 'disruption'. Worse, if we misread the writing on the wall, becoming overly optimistic, expectations do not meet reality. Disappointment ensues. There's so much to say about the consolidation movement going on in our little niche but if you ask me, the future is neither bright nor dark - it is simply the way it was always meant to be.
For years Xerox has been buying up dealerships. Lexmark sold out to a communist country. The toner-dudes jumped to one big ship. Ricoh assimilated Ikon, Canon did Oce, Konica Minolta ate Muratec and ECi is forming the Galactic Empire, collecting software like so many green M&M's.
How will all this impact the everyday salesperson? How about contracts, sales, and service managers? Perhaps a radical makeover is in around the corner?
See Your Future in the Past -
When automotive robots started painting vehicles, some saw this as the end of labor. The machine possessed advantages over their human predecessors - no vacation, no sick time, or union squabbles with consistent performance. Formidable, but we survived.
When the PC/Word processor began to erode typewriter sales, receptionists around the globe disappeared within a decade, and we survived.
When Bruce turned into Jennifer, we survived.
We envision the future as we see ourselves: perhaps through the lens of July 1976, or from the perspective of April 2015. Which is better? Time will tell.
When the world looks back on the Age of Paper, protests, and pontifications lamenting its passing will be nothing more than a footnote.
All I can suggest is in a turbulent world, knowing who you are, is paramount.
There once was a clever advertisement floating around stressing the futility of going totally paperless. The example was a world without toilet paper. When the pro-paperless character requests toilet paper, his partner slides a tablet under the door showing a picture of a toilet paper roll.
Cute.
My response to the metaphor is a bidet; no paper is required.
The fight for paper has been raging since 2007 - around the same time, managed print services started going mainstream. Over the last few months, amid the news of Lexmark selling, Xerox diverging, HP splitting, paper plant closures, and the massive consolidation of the dealer channel, it's odd to see more blogs and articles with titles like:
Article based on information from as far back as 2009, the year before the iPad. Oddly enough, manufacturers of devices that scratch marks on paper, fund these studies. That's right, the people yelling "paper matters" and "the death of print has been greatly exaggerated" are the same folks profiting off the sale of copiers and printers. Huh.
Surveys sponsored by print OEMs are receiving press coverage like:
Everything from green printing, security, and print big data, to mobile print, is getting a spike of media attention - artificial buzz created by well-funded marketing departments.
My response to all this "paper is still relevant" talk is Bravo Sierra. Poppycock. Horsefeathers. Bollocks.
Bullshit.
I'm saying this to the copier sales folks, the managed print services practice managers and salespeople, the toner crews, and everyone in the trenches - listen deeply to the noise, do not ignore the propaganda, and analyze the content with a dubious eye.
Remember, your prospects DO NOT READ THESE ARTICLES. Unfortunately, ownership and sales management are consuming this tripe like it's 1999.
Nod your head when these reports are regurgitated during your Friday evening sales meeting and smile whenever one of your colleagues exclaims with glee, "Print isn't dead."
Clients don't want to be tethered to a copier, chained to a printer, or slave to toner cartridges.
"And in your heart, you know I'm right."
The dirty little secret?
Our OEMs knew this back in 2007 and have been concocting it ever since. Progressive manufacturers are reducing sales acquisition costs with a virtual channel; take a look at HP Instant Ink.
Considering most of the buying process is completed without a sales relationship, and today's machines rarely require service, how relevant is a local dealership?
Now is the time to side with your prospects - sure, sell the shortsighted ones a copier or two - but keep your eye on the horizon. Dive into all the training you can and develop your personal brand.
The great computer dealership purges of the 1990's - Inacomp to Wal*Mart
The music industry - vinyl to CD to MP3 to streaming
The auto industry, 1970's, from V8 to 4cyl, from 400 HP to 100 horses running through front wheels
2/2016 - Look what is happening to Sharp - the copier side of Sharp is viable and profitable - is it far fetched to see another 'spin-off' or will the imaging division continue to be a profit center for the whole? Is an investment of $450M good money after bad ?
Lexmark has gone from the "long cool woman in a black dress" to having her parts examined separately. Recent augmentations appear more valuable than the core.
"...Printing remained challenged in the quarter with net revenue of $4.6 billion, down 17% year-over-year as reported or 11% in constant currency, with declines in all regions."
Turning to Supplies, revenue was down 14% year-over-year in Q1 about 400 people exited the company globally as part of the restructuring activities announced in September...we are accelerating the program and now expect approximately 3,000 people will exit by the end of fiscal 2016 instead of over three years."
Last year, Q1 2015, HP reported a 14% decrease print revenue. Two years of down numbers? How about 4 years?
Xerox -
In an article written by Stephen Hays, the chairman of Brighton Securities, George Conboy is quoted saying Xerox...
"is steadily on a downward path, especially in its equipment business. The demand for its technology is falling by the day. Though the company may not be staring at bankruptcy in the near future it is, however, facing a situation where it is slowly moving away from maneuvering paper documents and making copies. Meaning, Xerox Corporation (NYSE: XRX) is steadily shifting away from its equipment business as there is lesser demand for its technology..."
Outside pundits see, why don't our own?
Some might say the auto industry transformation was greater in scale and scope than our copier confluence but consider this: no other segment of business, lest IT, has had more impact in the business world that printing and copying.
Nothing in history compares.
Chevy Citation, anyone?
How can Lexmark, Xerox and HP change to remain relevant?
The car of the year in 1980 was the Chevy Citation. A front wheel drive, side mounted radio, "Accord killer". Parts fell off, transmissions locked and a generation of customers scrambled toward Toyota.
The OEMs continue to produce more of the same:
Is ink in the office akin to front wheel drive?
Is MPS the independent channel's CD?
Is managed services the next 5.25" floppy?
Either way, slow down and consider what is unfolding before our eyes - the greatest shift in business communications since the typewriter.
In an article written by Stephen Hays, the chairman of Brighton Securities, George Conboy is quoted saying Xerox...
"is steadily on a downward path, especially in its equipment business. The demand for its technology is falling by the day. Though the company may not be staring at bankruptcy in the near future it is, however, facing a situation where it is slowly moving away from maneuvering paper documents and making copies. Meaning, Xerox Corporation (NYSE: XRX) is steadily shifting away from its equipment business as there is lesser demand for its technology..."
Wow. Who woulda thunk? But who is surprised?
The vultures are circling Lexmark, HP just reported a 17% fall in print revenue, Xerox dividing and Sharp bouncing back and forth between China and Japan - all add up to the most dynamic imaging environment since the Great Rikon purchase of 2008.
2016 -
More experts are recognizing something we've been saying here on DOTC since 2008 - The Death of The Copier is upon us. They're talking bankruptcy and comparing Xerox with Kodak.
People outside of the imaging niche, folks who don't sell toner, copiers, printers, document management software, MpS, print 'big data', online marketing, dealer websites, copier sales training classes, MpS programs or save trees - articulate how the demand for copier/print technology "is falling by the day."
Like those forgotten print jobs, the WSJ reports Xerox will leave their hardware business in the exit tray.
Are you seeing double? One business for hardware, one for services. Didn't Xerox just buy their services division a few years ago?
Not only this, but Icahn will be given the seats on the board of the company holding Xerox's services business, the Journal reported.
Tell me again, how the copier is still relevant?
Two of the largest technology companies in the world have now split in two.
From the Xerox announcement:
"Today’s market realities require greater agility and flexibility, the ability to innovate and adapt technology to address clients’ fast-evolving needs, and a more focused and efficient approach to operations and capital allocation.
As a result, it has become increasingly clear that the Document Technology and BPO businesses serve distinct client needs, have different growth drivers, and require customized operating models and capital structures. Thus, the separation of the two businesses will enhance their competitive positions and create significant value creation opportunities, including:
Enhanced strategic and operational focus. Each company will leverage its areas of strength and differentiation to address distinct market trends and opportunities. The Document Technology company will invest selectively in growth areas while ensuring continued operational discipline and capturing transformative productivity. The BPO company will focus on leadership in attractive market segments to deliver differentiated solutions to its clients and drive profitable revenue growth. Simplification of organizational structure and resources. Each company will be able to adapt faster to clients’ changing needs, address specific market dynamics, target innovation and investments in select growth areas and accelerate decision making processes. Distinct and clear financial profiles. The separation will enable each company to leverage its distinct growth profile and cash flow characteristics to optimize its capital structure and capital allocation strategy. Compelling equity investment cases. As standalone companies, both companies will offer distinct and compelling investment propositions with differentiated financial profiles, growth drivers and business prospects."
Xerox also announced today a three year strategic transformation program targeting a cumulative $2.4 billion savings across all segments. The program is inclusive of ongoing activities and $600million of incremental transformation initiatives. The company expects $700 million in annualized savings in 2016.
Take a look at the graph.
What could this mean? Icahn is satiated for a bit. The hardware business, once separated, may be easier to sell.
The Death of the Copier is, once again, substantiated.
Back in the day, every single salesperson worth his or her quota carried a Franklin planner. Heck, I think HP, IBM, and Canon gave every rep a planner and the "Seven Habits..." in lieu of a PC and printer.
Instead of checking smartphones and pecking the qwerty, we'd unzip and unfold our cool, custom binders, jot down notes, check off tasks, and review calendars. And by 'jot' I mean, write down...with a pen or pencil...on paper even.
"...sometimes, reps would copy entire months, off the glass, and submit these "reports" to management..."
Scheduling the next appointment was in real-time, face to face, and "...if it didn't make it in my Franklin, it didn't exist..."
Business cards were stuffed in plastic sleeves for easy access and we wrote down phone numbers.
No. Really...we did.
At the end of the day or week, one might review the past and plan future action items or follow-up tasks. Again, we wrote on paper. More advanced users would apply sticky notes, and custom forms. (show-offs)
Leadership loved these things.
Old-school sales managers would surprise audit your Franklin, checking for scheduled meetings over the next couple of weeks - funnel review included handing your planner over to your manager.
Sometimes...and get this...sometimes, reps would copy entire months, off the glass, and submit these "reports" to management. Penny a click, penny a click...
So here's my plan.
If every single HP, Lexmark, Xerox, Canon, Ricoh, Epson, Samsung, Muratec, or Memjet, sales rep indeed, if every sales, branch, or district manager, each VP, AVP, and C-Suite employee in every manufacturer and dealer ordered a Franklin planner today, the industry would lead by example. The industry would save itself.
For this to work, The 'Planner' must be the required tool for funnel reviews and account planning. Follow me here...if the industry is serious about saving itself by repeating the same mistakes over and over, it should drink its own champagne and regress back to paper.
Move off Outlook, turn off the carphones. Get back to alphanumeric pagers, pink phone message pads, and overhead transparencies.
Fewer screens, more carbon paper.
Worried about productivity? Hear meetings without beeps, whistles, and tweeting sounds. No more heads buried in a keyboard checking Facebook during your copier technology roadmap presentation.
Nirvana...truly.
Go full tilt. Stop "selling the cloud" and referring to yourself as a technology company - everybody knows you're just trying to make your MFDs relevant.
Do you want relevance? Move your entire ordering process back to paper.
CRM? Yeah, it's a 1-30 tickler file. Slide deck? Sure, it is a deck of real slides.
If the industry wants to return to the hey-days of 1986, I say, put your value prop where your toner bottle is and get rid of your digital technology.
I dare you. I double-dog, dare you. I can't wait to see the direct reps sporting pleather binders and a return of the receptionist!
Require your professional salespeople to scan their Franklin at 7:00 AM and again at 5:30PM. Penny a click, penny a click...
While you are at it, bring back the original QWERTY and put the receptionist to work, typing up proposals. And yes, make 20 copies for every meeting. Penny a click, penny a click...
"Receptionist Wanted: Must type 120 words per minute and be versed in grammar."
Gosh, the possibilities are endless...
Satire -
We all know nobody in the imaging industry is going to lead into the past by giving up all their paper-reducing technology.
I guess the big question is, how can they expect their clients to do so?
11/2015 Mergers, acquisitions, sell-outs and less paper. 2016 will see the beginning of the End.
More signs. The tipping point is in your rearview mirror, if this is news to you, it's too late.
Today, Xerox may be running out of ink with quarter after quarter of declining technology business. They've also decided to scrap the wax.
Lexmark, after years of building a portfolio of MPS contracts is finally ready to sell out.
HP, the thickest of the thick, is splitting into two. HPG, (HP Inc.) can now move quicker and turn their profits into R/D for print. Will this five billion dollar start-up be the last print vendor standing? Can the old Printelligent model work? Mother Blue has been adding vans almost as fast as she's laid off employees. She has an impressive array of services, and a behemoth of a team ready to take the argument to the streets - direct.
Samsung may gobble up Nuance, enhancing a practically non-existent MpS program.
The independent channel continues to shrink and evolve. Just this week, Loffler joined the Xerox dealer channel and Marco cashes in, selling to an equity firm.
On top of all this, the American Forest & Paper Association released their yearly report stating, "...total printing-writing paper shipments were down 4% in September as compared to September 2014." The same report a year earlier sited a 7% drop from 2013 to 2014.
Taken individually, the list has one dimension.
But observed from a distance, and just to the side, these points reveal a multi-dimensional reality: The deluge is here.
Knee deep in a receding surf for the last 18 months the final Wave is coming. If you haven't sold or gotten out the only choice you have is to hunker down and hope for the best.
So what does it mean?
The End is just the beginning...ask yourself this one question,
"If office print disappeared tomorrow, what would I be doing the day after?"
Whatever answer you come to, you are absolutely correct.
HIMSS is a national, yearly show promoting technology in healthcare put on by the Healthcare Information and Management Systems Society. One can find providers for everything from hospital beds to billing software; from business intelligence to prescription printing.
When I first heard that my new company was attending the HIMSS conference in Chicago, even though I wasn’t even officially yet a member of the team, I elbowed my way into the fold. It was to be the company’s first appearance, which is both odd and timely. You see, we specialize in healthcare and have built solid book of business and stellar reputation in the niche, so it seemed a natural occurrence.
This year, the show hosted thousands of exhibitors and many thousands of attendees – at times it seemed every bus, taxi and hotel in Chicago was inhabited with HIMSS people. The locals were at a loss to explain the sudden spike in population. It gave me great pleasure to explain the show over deep-dish and beer — how every healthcare technology provider in the realm, from software to beds and nursing stations was planting a stake in the ground.
I expected HIMSS to deliver more than any of the shows I typically attend — which it did. If I combine the shows I’ve attended over the past 36 months, HIMSS blows them all away. In scope, in depth and scale of solutions, the event is a tidal wave of technology goodness.
The biggest draws were the software providers, yet a small contingent of managed print services providers managed to land a spot or two.
I knew PrinterLogic was attending and figured the OEMs would be there plying their solutions, but didn’t expect to see any more of the usual suspects. This expectation was proven correct with one surprising exception: FlexPrint.
Who was at HIMSS:
Xerox, Ricoh, Konica Minolta, Lexmark, Canon, Samsung and HP were displaying workflow, scanning, and mobile print. Only Lexmark placed “MPS” on their marquee, but even they had to track down the MPS person.
Konica Minolta has a nifty, Troy-like prescription print solution. Samsung had copiers, scanning, and with the help of Ringdale, follow-me print.
Biggest impressions:
IBM
It’s no wonder Big Blue commands attention. The booth was always filled and comprised of multiple solutions — not a printer in sight. The future is all about intelligence and healthcare presents an almost insurmountable amount of raw data. Churning through streams of live metrics and discerning a plan of action is front and center of IBM’s strategy.
Imaging OEMs
Lexmark, Xerox, HP, and Ricoh have sizable portfolios of healthcare solutions. Primarily supported by their direct teams, each is betting heavily on healthcare as a growth area.
FlexPrint
I was surprised to hear that FlexPrint was exhibiting – a familiar entity in a sea of strangeness. The ladies of the booth were amicable, posing for pictures and everything, although they saw me as a competitor.
They were there representing the copier niche as a national provider of managed print services. Commendable.
PrinterLogic
Over the past 12 months, I have shared all I know about this company. I’ve banged the drum and tried to explain to copier dealers the overwhelming significance of this specific offering within an advanced MpS practice. No takers. It is my contention that this sophisticated and elegant solution neutralizes one of the most frustrating managerial issues IT departments face. My opinion isn’t based on a training session or marketing material – paying clients, more than one, have expressed this to me. Enough said. If you’re interested, googlitize PrinterLogic.
What can we learn - three things:
1. In healthcare, print isn’t the most crucial issue, but it is important. For most, finding ways to eliminate inefficient paper-based processes is primary.
2. Our OEMs are small players in this ecosystem.
3. There is little room for an indirect channel. The expertise required is deeper than equipment surveys and toner delivery. Basic MPS engagements in healthcare are living on borrowed time.
Personal Observations:
When I think about MPS practices and copier dealers selling into the healthcare niche, I am concerned. For all the training and customized solutions the OEMs bring to the channel, they seem to barely simply scratch the surface – the print environment is more that simply print servers and cues. There is a world of CITRIX print
Print is a topic of discussion - it was odd, most of our OEMs were talking about digital workflow while the rest of the vendors were talking follow-me print. I spoke with more than a few attendees about follow-me/PIN/cloud/mobile print solutions. Other than access to the network, the biggest concern I heard was errant print jobs remaining, unclaimed, in the output tray. They were shocked to hear this solution has been around since the early 2000s.
Without ringing the doom and gloom bell, again, I’ve seen a slice of the healthcare universe the indirect channel doesn’t know about. I was completely overwhelmed by the relatively insignificant position our OEMs hold – they aren’t the “big boys” in this field.
The opportunity is huge, but the commitment is bigger – three days of technical training and a day of sales classes will not prepare you for the multi-faceted, extremely dynamic nature in healthcare.
My recommendation is to secure as many contracts as possible with clinics, hospitals and networks providing toner and service only. Don’t try to play in the software arena – the existing providers are seasoned, clients savvy and you’ll find yourself competing with your OEM. Get in there and grab the clicks for as long as you can.
During a Friday announcement, French IT company Atos SE revealed it is purchasing Xerox's IT outsourcing business in a deal reportedly valued at $1.05 billion in cash.
From an October 2009 statement regarding the ACS acquisition:
"...Xerox executives say the IT outsourcing portion of the ACS buy is integral to expanding the company's BPO offerings. "The lines between document outsourcing, BPO and ITO are blurring," says Paul Hartley, Xerox's vice president of corporate business strategy. "In fact, a robust IT infrastructure is paramount if it is to serve as the backbone of a BPO operation."
“Atos is a company with whom we’ve had a long relationship in several capacities. Selling the ITO business to Atos gives our clients around the globe an expanded, world-class suite of IT capabilities that complement Xerox’s industry leading BPO and document outsourcing solutions.” said Ursula Burns, Xerox’s chairman and CEO. “This transaction is another step in our ongoing portfolio management strategy and increases our focus on those areas where we can deliver the most value and expertise to our clients”.
What does this mean?
For the trenches, not much. In a larger sense, Xerox is now able to focus on document based BPO and Document Outsourcing. Xerox ITO services is was part of the ACS acquisition back in 2009:
The deal looks to be good for both Xerox and Atos; opening the US IT outsourcing market to Atos and allowing Xerox to collaborate with Atos and present Document BPO services to current clients.
On one side, "Managed Service Providers(MSP's) Should Get into Managed Print Services", on the other, "MSPs Shouldn't Bother." I didn’t get the hype - maybe because I’ve done it from the front and behind - saved an MpS practice inside a VAR/MSP and created an MSP within a copier dealer.
Still, I was intrigued...
From the imaging side, I believe if you can create and run a profitable MpS practice, you can handle an MSP.
I thought to myself, "Maybe there was something to this…perhaps the MSPs in the room DO want to learn more about MpS and are thinking about getting into the realm." I started to pay attention.
From the IT side, I’ve felt adding printers to a screen in your NOC is no big deal; I’ve done it, and you can too. Indeed, in the beginning, I wrote about how we on this side should beware of the possible invasion of our little niche by all those independent VARs.
It didn’t happen that way, did it?
Why So Crowded?
Based on the number of people in the room, it was apparent others were interested in this subject. For a managed print services meeting at a computer convention, there were more people than I had anticipated. I thought to myself, "Maybe there was something to this. Perhaps MSPs want to learn more about MpS and are thinking about getting into the realm."
WRONG. DEAD WRONG.
"...a Konica technician asked my customer how they were handling IT..." with a waive of his hand he dismissed a meager attempt to take HIS customer.
The debate attracted a cadre of MSPs more to support their MSP leader, less to explore the possibilities. Like every VAR/IT/MSP/ITOEM I’ve ever talked with about managed print services, their mind was made up. Anything to do with printing "is below them” and getting into MPS would be “a step backward”.
Yes, those are quotes, and here are some other talk tracks uttered by the MSP dude:
"Not going to add to my already full plate of vendors…" "The market is not that big…" "My customers are reducing print, why would I get into a diminishing market…" "I don't like printers. Should I be selling huge systems or filling a 'toner quota' - thanks HP…"
Have you ever been to an event or party and at some point, realize you're not in the right place? Sure, you've received an invitation, but you feel completely outside the discourse. Not because the conversation is over your head, but more due to a crystallized moment in time when you can clearly see everyone else off on their own voyage - apart from you.
Well, that's the flavor of epiphany I experienced - that and a bit of deja vu.
These IT guys just do not like printers and think copier folks can't compete with their real computer expertise. One MSP mentioned how "...a Konica technician asked my customer how they were handling IT..." with a wave of his hand he dismissed a meager attempt to take HIS customer.
"How droFor IT Providers: Managed Print Services Could be the 24th Chromosomele..."
They do not respect printers and the people who derive a living from this industry. If you think about it deeply, you know what I say is true. Seasoned MPS reps are numb to IT people talking down to us but it is there...always has been.
I am done trying to evangelize to the IT community about managed print services for three, basic reasons:
1. They are too prideful (snobs)
2. Print is declining
3. The IT/VAR/MSP niche will decline FASTER than office print
Call Great America, today or buy out one of the smaller MSPs in your neighborhood.Today. Now. Stop fooling around. This is one of those cases that supports the, "go out and sell it now, we'll figure the rest out tomorrow."
Pride goeth before...
Sure, there will be a few VARs/IT/MSP organizations who dabble in MPS if HP takes the deal and the paper, but for the most part, they are not going to deploy an ‘engineer’ into the field to clear a jam. This is a cost and emotional issue.
Going, going...
Dave Ramos, a colleague, and friend presented interesting findings about print decline, sighting one of our favorite slides from International Paper and linking the latest paper plant closing in Alabama. A4 paper is in such decline IP had to close a plant whose primary output was 8x11 - this one location supplied 8% of the office-sized paper.
They've Got Their Own Kettle of Fish...
Here's the big reason - the IT world is going through a much bigger transformation than we are. The 'cloud' represents a move away from hardware - Zero Client and IAAS both support the realization that organizations DO NOT NEED HARDWARE-CENTRIC VALUE ADD. Today's IT providers are blind to this and in no position to adapt. The biggest shift is going to be elimination and evacuation. For example, they're talking about 'moving to a service-based' business model with 'recurring revenue streams' as though they've just heard of it.
Don't expect to see copier techs badged up by your local MSP anytime soon. They're not coming to the MPS party. Just like retail computer stores dissolved overnight, so too, will your trusty down-the-street VAR/MSP. Bottom Line...
What about you, the copier dealer, the toner supplier, and the printer organization? Think of it this way, managed print services manages the decline in print, managed services helps customers manage down their dependence on local servers, software, hardware, and the people(local) who provide value-add.
Now is the time to get into managed services - the low barrier of entry and distracted fragmented competitors. Don't overstudy. Forget about heavy evaluation.
Call Great America, today or buy out one of the smaller MSPs in your neighborhood.
Today. Now. Stop fooling around. This is one of those cases that supports the, "go out and sell it now, we'll figure the rest out tomorrow."
One more thing...
Forget about getting all your reps trained on "IT Services", like it's different from managed print services - well, I should say, the offering is different, but the approach is similar. There are too many managed services sales experts who have never sold, proposed, or closed a complex, all-inclusive engagement.
The outsiders from the IT realm coming into the copier world don't get us, they've hired the wrong 'advisors' to help them grow their share of our wallet and some are increasing their value for the next round of VC or prospective buyer.
Go out there and learn it the best way - in front of prospects.
Your reps don't need some other guy's super secret sauce and you shouldn't measure yourself against somebody else's benchmarks
The concept of inkjet printing originated in the 19th century, and the technology was first developed in the early 1950s. Starting in the late 1970s inkjet printers that could reproduce digital images generated by computers were developed, by Epson,Hewlett-Packard (HP), and Canon. - Wikipedia.
The best marketing dollars are spent inviting 'analysts' to an event, feed them caviar, fillet, and tell them how important they are. Lo and behold, a fountain of cool-aid drinking marketing content disguised as 'fact' splashes across websites and the industry's remaining print media. No blame, its just the way of things.
2012 If you've been in the industry for over a year, you know how much the ecosystem changes. You also know that rumors of business deals churn faster than your 36 month ex-dates.
Especially when it comes to which OEM is buying who, what dealership is consolidating and who is getting sued by Canon/HP.
We have a small but rather colorful niche which is likely to get a bit smaller.
Not 'doom and gloom', it just is.
I keep my eyes out for new and interesting tidbits of information, getting a feel for trends - nothing statistically supported, no study groups or polling numbers. I pay attention to how often a company or person pops up on my 'radar'.
Over the last 60 days its been Xerox - more specifically, Ursula Burns.
Videos and quotes have been flowing into my view so often and I decided to listen in on the Xerox earnings call. Very interesting.
These calls pretty much go without incident - one typically needs to listen deeply, digging out encoded tidbits of insight. It is quite typical not to hear any mention of competitors and report the landscape in extreme generalities.
That's why one statement made me do a double take:
Ursula Burns, Xerox Corporation, Chairman and CEO, responding to a question posed by Bill Shope - Goldman Sachs, Analyst on the competitive landscape, 2012, Q1 earnings call:
"...Yes, I think that I would speak about two companies outside of the other group.
So the other group is Canon, Ricoh, KM. You know, the normal technology people, technology hardware providers, and they are still infants in document outsourcing.
They are really not large players. They are trying to get together solutions and offer them, but we really don't compete actively against them..."
WOW - bit of the old smack-down, eh?
Now listen, I have never worked for Xerox, seems they are the only OEM I don't have intimate experiences with, and it is true that I write for the Business Transformation Center which is Xerox sponsored, but up until 12 months ago, I considered Xerox a competitor.
Twenty-four months ago, I evaluated PagePack. Ten months ago, I was looking at PagePack 3.0. and just 8 months back I evaluated the ColorCube. Xerox hardware and program are impressive, any way you shape it.
Over the past 60 days I have come to know the story of Ursula Burns - out of the projects and up through the ranks. I like that.
At Less than 9 bucks, XRX is a steal.
Merger talk and take-over rumors are part and parcel of the imaging industry - from Ikon to Danka, Ricoh to Global, everyone on the outside recognizes the incestuousness atmosphere while we inside shrug our shoulders and say, "what?"
The swirling chatter today is that the X is prime for a take-over and Dell or HP are would-be suitors.
Personally, I don't think HP is a strategic position to take on anyone. And I don't think they are all that gun-ho on continuing down the toner-based path.
So what about Dell?
With Xerox deriving over 50% of its revenue from services, Dell might fare well acquiring all those inroads to global IT entities; spin-off the Global arm, converting it into cash. Again, I doubt Dell wants to get into the copier/printer world, wax-based or otherwise.
I know what you're thinking - who else would take Xerox? Look west...far west...Seoul.
Samsung may want a channel where they have none now. Samsung might like the idea of instant invite into the best of the Fortune 500.
Nawwwww...it'll never happen...still...
Detroit hasn't been the Automobile capital of the World for decades. GM is owned by Canada and Chrysler has been sold off to an Italian automaker. Boeing has to compete on the world stage no longer holding dominance. And HP is in the middle of sending her once cash-cow, out to pasture.
What happened to all the American companies?
Well, in the End, money is money - generated by clicks, seats or acquisitions - it makes the world go 'round.
“Business Acumen” is a cool way to say, “been there, done that…got three years' financials to prove it” – I admit, it is a big word, does it scare you?
From Merriam-Webster:
Acumen: keenness and depth of perception, discernment, or discrimination especially in practical matters.
Practical Matters.
Lots of salespeople don’t think they have acumen, or that there is some special process that goes with acquiring the skill of discernment. Worse, some employers don’t believe their employees possess keenness – more than a few sales managers feel their salespeople lack depth of perception.
You know I’m right. You’ve seen it, I’ve seen it, we’ve all been there.
What to do?
Stand back, there is something going on here, something new; The New Age of Selling. It has nothing to do with the Mayan calendar although "The New Age" calls upon the collective selling skills of the past 25,000 years.
Woah, heavy.
I know it’s difficult to see, but the current economic “Charlie Foxtrot” will someday be in our rear view mirror. When the recovery does start, for real, the new selling professional will lead the way. I believe that our industry, our sales people, in the trenches, will be examples of success, role models.
The New Way demands more from you, the Selling Professional:
Collaboration – be open to working with everyone, yesterday’s rivals could be today’s partner
Engagement/Intent – work with your clients, partners, peers at a deeper level, with High Intent
Growth – thrive on change, bring change, be the agent for change
The New Way also exists in a new environment, a business context that has never existed:
Information is everywhere – Content and data are universal and will permeate
Power is shifting down – from the OEMs to the cube farms, personal power is increasing
Technology is mundane – your refrigerator will talk with your toaster
“Citizen Mobil” – brick and mortar is dead. Smartphones, tablets, wireless and G4 networks, you, your clients, and clients’ family and kids are processing business everywhere. Think Cold Calls from the beach.
The times are different and personal acumen is more relevant, you are much more relevant, and in context.
One more thing: There are No Academic Experts. We're making this up as we go - and because this is all new, dynamic, and changing every 30 days, formal, teaching experts are simply rehashing history - not projecting
The New Selling, not Sales 2.0 or 3.1, let’s call it, Sales X dot XX - “Sales X.Xx"
This Unprovoked Attack on Me, is an Attack on You.
From my friends at CRN - Computer Reseller News, no less.
I have no idea how I even popped up on their radar, but apparently, I ruffled some back room feathers. I am an easy target, my name is all over my blog, unlike the fictitious "Paige Coverage"; an obvious Xerox marketing creation, and yes, I actually have real pictures of me.
Thank goodness I didn't post pics of my children, for they would have been thrown under the bus with me.
What befuddles me, beyond comprehension, is what nerve have I struck?
Perhaps the Xerox folks I have been working with for the last year, evaluating PagePack and ColorCube as possible offerings here at SIGMAnet, will be able to answer that question.
Perhaps the members from TeamXerox, who I met with last week during a Synnex event, can help me understand why I would consider moving forward, or even recommend anything from Xerox to my executives, prospects, clients, members of the MPSA, or the thousands of DOTC readers.
Read and tread lightly for this isn't just an attack on me. No, this goes deeper. Much.
What Paige/Xerox has done is shown its colors - they don't like, they don't want, dissension.
THEY FEAR CHANGE, THEY FEAR YOU, THEY FEAR US.
Paige is a creation, like the Monkeys and a shill for Xerox. Paige represents the will and vision of the Big X. For all we know, Paige Coverage is Ursala Burns. In the end, Paige is Ursala.
The Summer of 2011 DOTC vs. X - un-fuking believable. Oh the fun we are going to have...
And yes, I know this is all a sham to get more hits on their small, pathetic site - God, I love this country.
Read on...
Greg Walters Leaves a Trail of His Own Ignorance
Posted by Paige Coverage on Jun 21, 2011 11:27:02 AM
When he's not parading past you his music library or posting You Tube videos on his site, Greg Walters hacks out a confounding and scattershot blog called "The Death of The Copier is the Death of MPS."
Presently he's mourning the sad and premature death of E Street Band saxophonist Clarence Clemons, but he'll soon be back to getting his facts wrong, and contradicting himself with his bizarre attempts to frighten you out of a business he himself claims to be successful in: Managed Print Services (MPS).
Like spotting someone you've placed a restraining order on, I was reminded of Greg when a colleague forwarded me this rusting blog of his from December.
In it, Walters rekindles his addiction to managed print defamation by claiming that:
“Just as everyone figures out how to spell MPS, industry pundits kill it. Photizo called heavy growth rates in MPS Engagements through 2015 - of course this was back in the "olden days" - 2009! Last year at Lyra, consultants and statisticians explained that we will never return to the same levels of units (copier) sold, pre-2009.”
Same level of copier units sold? This is not an argument for the death of managed print services.
And Walters – who describes himself as “an MPS Practice Manager at medium-sized west coast VAR/MSP (whose) GP is consistently at 48% - fleet is doubling year to year, my goal is to quadruple in 2011” – should know this.
Managed print services is not about pushing boxes, anymore than managed IT services are about selling more PCs, or virtualization is about selling more servers, or cloud computing is about selling more storage hardware. A managed service is about optimizing existing resources. Sure it’s nice to sell some hardware, and everyone does. But service dollars outdistance hardware and software sales by a country mile, and have so increasingly for years.
Walters’ blog post goes on to feature quotes from those either too unsure of themselves to enter the managed print market, or are under the misconception that “it will make us millions on printer revenue.”
Walters’ opinions are just plain nonsense sprinkled with rock music lyrics, and no reputable technology reseller of any kind would allow this child to speak in front of their employees or customers.
It’s a shame that just as everyone figures out that certain blogs and social media sites can be of benefit to helping the channel drive more revenue through services, irresponsible self-promoters like Greg Walters come along to contaminate the well.
At least - by his own admission - no one is foolish enough to pay Greg Walters to write.
