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Thursday, December 18, 2008

HP Q4 ConCall with Hurd

Conference call on the 17th, with Hurd and Kathryn Huberty...highlights.

Summary - Fourth Quarter Highlights

Revenue totaled $33.6 billion, up 19% year-over-year or up 16% in constant currency from $28.3 million in 2007.

- The firm generated 68% of its total revenue from outside the United States, revenue in EMEA was up 22%, the Americas increased 17%, and Asia-Pacific increased 14%.

- Gross margin was 22.9%, down 180 basis points from 24.7% one year ago, driven primarily by the addition of EDS, which reduced gross margins by 140 basis points and, to a lesser extent, by a more normalized impact from commodity pricing compared with a year ago.
-----

- Imaging and Printing reported revenue of $7.5 billion, down 1% year-on-year as supplies revenue growth of 9% was offset by declines in Commercial and Consumer hardware revenue of 10% and 21% respectively.

- Operating margin increased 100 basis points to 15.5% as strong Supplies growth and cost reductions were partially offset by discounting.

- The firm gained share while total printer units were down 8% and Consumer and Commercial printer hardware units declined 8% and 9%, respectively.

- Revenue in HP Software grew 13% to $855 million and BTO outgrew its primarily competitors, increasing 15% from the prior year.

- Other software, which includes Open Call, Business Intelligence, and Information Management, grew 1% as the strength in the information management business was offset by declines in Open call.

- Software posted operating profit of $195 million or 22.8% of revenue.

- HP Services, with the addition of EDS, doubled its revenue to $8.6 billion and reported solid operating profit of $920 million or 10.6% of revenue.

- For the period between the August 26 acquisition date and October 31, EDS delivered revenue of $3.9 billion as customers across all regions continue to respond favorably to the combined services business.

- Demand remains solid, with a healthy mix of new and existing customers and integration plans are on track as the firm eliminated over 2,300 positions in connection with the EDS integration.

- HP Financial Services had revenue of $691 million, up 5% year-over-year, and generated operating margin of 7.4%.

- The firm continue to apply the same rigorous process for assessing the creditworthiness of its customers and the quality of its receivables.

Fiscal 2009 Outlook:

- The firm expects revenue of approximately $32 to $32.5 billion in the first quarter and approximately $127.5 to $130 billion for the full year.
- It plans to cut over $1 billion on a constant currency basis from the cost structure in 2009.

Brian Alexander (Raymond James): In IPG, what''s happening to the installed base in Consumer and Commercial hardware in light of the unit declines?

Mark V. Hurd:The installed base is staying installed longer. That''s clearly what''s going on and you can see us gaining share. We believe our installed base is sort of - depending on what country and what segment and what price category - we believe we''re doing quite well.

Certainly, you''re seeing a trend towards wireless in the home, which in some cases has fewer units doing just as much printing as the home used to, so for us, that''s not necessarily a bad answer. We sort of like the answer, where we can sell less hardware to effectively print as much as the ecosystem has been printing.

We have to be cautious here because when we get too aggressive on price, in many cases we''re accelerating the movement of our own installed base. The reason we put the installed base out there is to print. So for us, lower unit growth is not necessarily bad unless it means we''re losing share.

Catherine A. Lesjak: As long as people continue to print on HP printers so that we have a healthy installed base, having them hold on to their printers longer and delay upgrading is actually positive for earnings for us.

They are buying the same amount of supplies and we are not having to make that kind of next investment in terms of placing a hardware unit that’s either at a negative margin or at a very low margin.


Wednesday, December 17, 2008

The 10 Biggest HP Stories Of 2008


Wow - it's an HP love-fest-o-rama...

Over at ChannelWeb, a 10 slide presentation about the Top Ten HP stories of 2008 - nothing about printing, but lots of other stuff.

It was a good year for HP, a very good year if compared to the rest of the industry.

Check it.

Tuesday, December 16, 2008

Print Management - Insight from Everything Channel's 2008 Print & Imaging Summit last week in Bonita Springs, Fla.

Print Management Did Make a Splash in '08 - What about 2009?

See this article:

What Big-Spend End Users Want From Print & Imaging

By Chad Berndtson, ChannelWeb
1:53 PM EST Tue. Dec. 09, 2008


The article is more specific, but here are some highlights -

Budgets low, economy bad -

"It's really important to our organizations to reduce the overall print spend," said Colleen Grant, manager of field support services at Interior Health Authority, Kelowna, B.C. "It's really difficult to manage that in any effective manner, and in 2009 we'll be analyzing what we should print and what we are printing."

Print units are still being purchased, but:

"We're down to looking at every single contract: here's how much we're paying you and how much less we can pay," said Anna Garrett, senior manager at Deloitte Services, of Wilton, Conn. "Our print and image fleet is probably about 4,500 printers or MFPs and about 700 copiers. We're looking to put more things together and reduce the number of devices. We've also done a horrible job of tracking what we print. In terms of spending, our copiers are always leased and our printers are always bought."

Success story:

"We've had all these functions centralized since 2001: all print, all mail, all our IT functions are under one organization, and we've seen some real benefits from that," said Lawrence McNish, director of document processing resources at American Family Mutual Insurance, of Madison, Wis.

"We're headed for our second generation of MFPs and we partner quite heavily with our finance area and do a lot of tracking of end usage. We used to have 2,400 printers and 460 copiers and we have maybe 800 and about 225 now. We're seeing reductions because we're rightsizing -- it's not just for our budget."

"Our copier and printer fleet from Xerox (NYSE:XRX) are all up for renewal this year," said Cynthia Meyer, senior buyer, IT, at Alliant Energy, a public utility holding company also headquartered in Madison.

"We have less budget to spend like everyone else, but I don't like leases because of what happens at the end of a lease. I don't like the lack of flexibility. I'd like to put something in place that allows me to rent. Plus, even beyond putting ink on paper, you have plenty of issues with document management."

Still measuring:

"We're trying to get our arms around that, and trying to figure out our strategic direction," said Kieran O'Reilly, lead business systems analyst at UPS, Mahwah, N.J.

"We're not looking to spend a lot of money -- basically to keep the lights on," added Greg Matkovich, strategic sourcing manager at The Home Depot, Atlanta. "We don't even know what we have, to be honest. Corporate [offices are] the Wild West, and we're looking to do a lot more self-assessment."

Direct, Vendor, or VARs?

"On our printer side, we had HP (NYSE:HPQ) and Lexmark both, and they're bought through resellers," said Greg Cunningham, manager of service strategies and optimization at IBM (NYSE: IBM) Canada, of Victoria, B.C. "It's my observation, though, that HP and Lexmark support the reseller and not necessarily the client. I don't see [client support] happening."

A great deal of good information was shared at the summit - and it looks like Managed Print Services was discussed in detail, and is in place or top of mind for some of the "big" companies.

Click to email me.





HP Placed in Leaders Quadrant in “Magic Quadrant for MFPs and Printers” Report- ***UPDATE***

According to Mike Feldman Vice President and General Manager
Enterprise Sales and Services IPG-Americas

Over at the HP’s Enterprise Printing Blog, you can read that HP is proud to find the Edgeline in Leaders Quadrant of the Magic Quadrant.


*****Press Release *****

HP Placed in “Leaders” Quadrant for Multifunction Products and Printers in Magic Quadrant Report

PALO ALTO, Calif., Dec. 12, 2008

HP today announced industry analyst firm Gartner, Inc. has positioned it in the Leaders Quadrant of its “Magic Quadrant for MFPs and Printers” report.(1)

The Gartner Magic Quadrant positions vendors based on their “ability to execute” and their “completeness of vision.”

According to the analyst firm, vendors are assessed on weighted criteria, including products or services, sales execution and pricing, market responsiveness and track record, marketing execution, customer experience, offering strategy, business model, and geographic strategy.

“In my opinion, HP’s placement in Gartner’s Magic Quadrant in the leaders quadrant is a testament to our strong customer relationships and our ongoing commitment to deliver the most robust MFP solutions to customers all over the world,” said David Murphy, senior vice president, LaserJet and Enterprise Solutions, Imaging and Printing Group, HP. “We will continue to set the industry standard by extending our MFP portfolio and complementing it with innovative software solutions that together deliver unequaled efficiency and performance for our customers.”

According to the report, “Leaders are the most capable in providing MFPs, printers and the associated printing solutions and services that support the proper functioning of these devices in the broadest category of customer sites. Leaders have broad channel capability to deliver the products to customers where they want to procure them. Leaders consistently hold strong market share positions in both printers and MFPs worldwide and are capable of delivering nearly identical service levels in more of the regions where Gartner customers are located. Leaders tend to have the deepest global capability and the inventiveness and resources, skills and vision to deliver superior levels of support to existing and future customers globally. Leaders have a proven track record of channeling R&D initiatives into products and solutions that customers need.”

HP’s complete portfolio of hardware, supplies, software and services offers both small to medium and enterprise customers a cost-effective, productivity-enhancing imaging and printing environment.

About HP

HP, the world’s largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

(1) Gartner, “Magic Quadrant for MFPs and Printers,” by Don Dixon, Sharon McNee, Vishal Tripathi, SJ Chae, Sergio Santos, Dec. 9, 2008.

The Magic Quadrant is copyrighted 2008 by Gartner Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors’ measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

Monday, December 15, 2008

The 10 most influential leaders in business technology in 2008


Last year he was "left off the list"...oh what a difference a year makes!


Jason Hiner, Editor in Chief over at TechRepublic, in his blog listed his Top 10 Leaders - it's an interesting read.

Number one with a "bullet" -

"1. Mark Hurd, Hewlett-Packard

Last year, I left Mark Hurd off the list and even remarked that Carly Fiorina deserved a lot of the credit for Hewlett-Packard’s resurgence because its roots are based in the HP-Compaq merger, which Fiorina had the guts to do. But, it becomes clearer every year that Hurd is making the right calls and motivating the various HP divisions to execute. HP is back on top in the PC market (having overtaken Dell), it is tied for the lead in servers with IBM, and it is even making strong moves in the networking market with its ProCurve gear. Plus, it bought EDS in 2008 to expand its footprint in IT services. All of the while, it has allowed its incumbent printer business to quietly take a back seat. That’s why HP is doing so well, even in the face of economic headwinds, and that’s why Hurd deserves the top spot on this list."


And I found this post over at MediaWireWeekly from February, 2007 - "...He barely makes appearances, not to make a statement, but because he is actually huddled with his management team working..."

Not bad, I doubt Hurd even cares which is cool too.



Saturday, December 13, 2008

Last Year: Ricoh and IKON; Next Year HP and Canon? What the Heck?

"I've advocated some kind of [agreement] between Canon and HP, modeled off the Fuji-Xerox joint venture," suggested Don Dixon, research director at Gartner, "They have complementary product sets and complementary capabilities from a best practice sense. Canon needs distribution and the IT affiliation that HP brings to the marketplace. There's a good fit there. Whether Canon has the temerity for something like that is the question." - Image & Print Summit, 2008.

- Woah, Nelly!



While researching for my "Best Darn End of Year Article", I ran into the 10 Burning Questions In Print And Imaging over at the ChannelWeb site.

These questions reflect the hot topics at the Print and Imaging Summit from last week.

All ten questions and the associated answers are ripe with direct information and heavily sprinkled with inferred strategic directions. I recommend you go there, read and digest.

We all wonder how the the current economic woes will effect us, personally. As for Imaging and Print, Gartner Managing Vice President Peter Grant said, "...there are three areas that are going to be the lighthouses guiding you to the land of print cost savings -- smart MFPs, managed print services and software.

I understand his belief about Managed Print Services and can see the software angle, but define for me what exactly a "smart" MFP could be or is.

***UPDATE*** 12.17.08

Definition of a Smart MFP, SMFP:

" A regular MFP can print, fax, copy and scan paper documents. An SMFP can also be programmed by a third party, the user or the technology provider to perform custom functions; easily integrates with office and enterprise applications; is management-friendly, with consistent architecture and user interface; works well on the network; and is based largely on open industry standards. SMFPs can perform usage tracking and other functions that help organizations actively manage their office printer/MFP fleets."
-Source, Gartner.

Who are the Heavy Hitters in MPS?-

Specifically who are the players in the MPS arena and which ones are best positioned. At the Summit, Gartner Research Vice President Ken Weilerstein referenced the latest "Magic Quadrant" results stating Xerox and HP are the Leaders. IKON, Ricoh, Pitney Bowes, Lexmark, Canon and Toshiba are each mentioned in the "Qaudrant" report.

Regarding an advantage the smaller, niche players may have over "big" players, "They [niche] may provide more personalized service and be more accommodating to your needs than large vendors," Weilerstein said.

"I heard from one client who tried one of the big vendors that it took her five calls to get to the right person. It can be unwieldy."


But to me, the big questions revolved around the IKON/Ricoh deal and Canon's response.

What's To Become of Canon?-

One of the biggest print and imaging stories of 2008 was Ricoh's acquisition of Ikon Office Solutions back in August for approximately $1.61 billion. And you also remember Ikon provided more than $1 billion of Canon's systems in North America.

And according to reports from both Canon and Gartner, Canon is focused on expanding its national accounts, widening sales channels, more acquisitions and authorizing new Canon dealers to compensate for Ikon losses.

"For the most part, the Canon box and the Ricoh box at certain levels are doing pretty much the same thing," said Don Dixon, research director at Gartner, "If you're an Ikon customer holding Canon hardware, well, you're in a great position to renegotiate your agreement. Canon is in a precarious position at the moment."

What Will Be The Next Big Merger & Acquisition Event In The Space?-

As you can imagine, one of the big subjects discussed officially and around various watering holes are the implications of Ricoh's acquisition of Ikon.

There will be more M&A in 2009 as barely surviving firms run for cover from the current global recession.

"We've advocated that there are too many players," suggested Dixon, "Some are staying in the marketplace but don't necessarily offer anything unique that customers are really asking for. They've just always been there."

"Canon has a lot of money but is not showing well in managed print services -- their channels are getting attacked by their competitors," said Gartner Managing Vice President Peter Grant. "Ricoh is on a tear, moving forward -- it'll be interesting to see what Canon does now that it's back on the ropes."


"I've advocated some kind of [agreement] between Canon and HP, modeled off the Fuji-Xerox joint venture," added Dixon, "They have complementary product sets and complementary capabilities from a best practice sense. Canon needs distribution and the IT affiliation that HP brings to the marketplace. There's a good fit there. Whether Canon has the temerity for something like that is the question."

Could the above quote be an indicator of the "shape of things to come"?

I am not sure, but those guys over at Gartner seem to have had a pretty good grip on things thus far, perhaps the crystal balls have been polished.

Friday, December 12, 2008

Minority Report - Who Needs Paper?

And I really wanted is on of those cool glass, "whiteboards" but now...I want this.




I "lifted" this off of the Xerox

Wednesday, December 10, 2008

HP Offerings in Asia - Print Management Tools and Printers Aimed at Enterprise Customers

HP Introduces New Range of Imaging and Printing Devices and Tailored Solutions to Accelerate Business Results for Enterprise Customers

From SINGAPORE, via "Enhanced Online News":

December 03, 2008 02:30 AM Eastern Time

SINGAPORE--(EON: Enhanced Online News)--HP today announced its expanded portfolio of HP printers, imaging and printing devices, solutions and services to help enterprise customers boost productivity, security and environmental sustainability.

“The expanded imaging and printing portfolio features a robust line-up of targeted, cost-effective solutions with the right mix services and devices to enterprise customers, helping them achieve better business results.”

Building on HP’s leading position in enterprise imaging and printing, HP’s broadened portfolio comprises four specialized solutions, four assessment services, one HP LaserJet multifunction printer (MFP), three HP LaserJet printers and an HP Scanjet device.

According to IDC, HP is the leading provider of laser single and multifunction hardcopy peripherals shipped to Enterprises(1) in Asia/Pacific (excluding Japan) region, with 42% market share and strong double digit year-on-year growth (+13%)(2).

“HP is continuing its efforts to help enterprises build an Enterprise Print 2.0 plan as enterprises optimize their infrastructure, manage their environment and improve workflows,” said Pierre Mirlesse, Vice President, Enterprise Sales and Services, Imaging and Printing Group, HP Asia Pacific and Japan. “The expanded imaging and printing portfolio features a robust line-up of targeted, cost-effective solutions with the right mix services and devices to enterprise customers, helping them achieve better business results.”

Specialized solutions for enterprise customers

Tailoring solutions to meet specific industry needs, HP has added new enterprise solutions focused on customers in the healthcare and manufacturing and distribution industries. HP also introduced two imaging and printing solutions and four new assessment services that span industry sectors to address specific business needs for enterprises.

Designed to streamline information workflows, enhance security and help reduce costs, HP’s newest solutions offer customers industry-specific expertise with a single point of contact for simplified sales, service and support processes. These include:

* HP Document Capture for Admissions and Electronic Medical Records help reduce medical errors and boost patient safety. Designed to safely capture and protect patient medical information, these offerings let healthcare organizations utilize the latest HP healthcare technology to more easily comply with government mandates, including patient-privacy regulations.

* HP Automated Invoice Processing Solution allows businesses in the manufacturing and distribution industries to automate the value chain of invoice processing, from document capture and distribution across the organization to seamless integration with SAP. A joint HP and ReadSoft® solution, it captures data via an HP multifunction printer (MFP) and provides increased control over the invoice workflow to facilitate more rigorous records management and compliance; accelerated invoice payment process for better spending visibility; and improved invoice reconciliation through automated, business-rule driven processes.

* HP Assessment Services comprise five modules that capitalize on HP expertise and knowledge to allow enterprises additional control over print-related processes. With a range of assessment services, HP will collect, analyze and monitor printer-related activities, giving customers a current, fact-based account of the imaging and printing environment. The five new services are HP Industry Benchmark Assessment, HP Optimization Assessment, HP Managed Environment Assessment, HP Workflow Discovery and HP Eco Printing Assessment.

* HP Access Control Printing Solutions are designed to help mitigate security and compliance risks. These solutions, comprising HP Access Control Secure Printing Solution, HP Access Control Secure Pull Printing Solution and HP Access Control Job Accounting Solution, help control and protect access to imaging and printing devices and documents and also facilitate tracking and monitoring of the usage of documents.

* Updates to the award-winning HP Universal Print Driver (UPD) 4.7 empower end users to resolve issues themselves by providing real-time print job and device information. New features include the ability to choose between automatic or manual print queue configuration, allowing for pre-configuration and installation of a queue prior to physically connecting the device to the network. Businesses also benefit from a single, intelligent, feature-rich driver replacing many individual drivers, thereby making it easy to connect to HP LaserJet printing devices without downloading separate, product-specific drivers.

New line-up of imaging and printing devices to drive enterprise efficiency-

HP also introduced new printing devices and supplies to better assist customers in saving time and money and to increase efficiencies for enterprise and mid-sized businesses through printing and scanning devices. The new offerings include HP LaserJet mono, color single and multifunction (MFP) devices and an HP Scanjet.

* The HP Color LaserJet CM3530 MFP(3) is HP’s first legal-sized desktop Color LaserJet MFP that offers high performance in a space-saving, compact design. Fully equipped for seamless integration into a network environment, the user-friendly MFP has full document management and workflow capabilities, allowing for increased productivity within small work teams. The HP Color LaserJet CM3530 MFP and HP Color LaserJet CP3520 printer series come with HP’s improved HP ColorSphere toner, which helps customers produce professional-looking documents, marketing collateral and business-quality photos with consistent, true-to-life colors.

* HP Color LaserJet CP3520 Printer Series(4) is reliable for the general office and cost-effectively prints eye-catching color business communications and marketing collateral. Making color devices more affordable than ever, this series offers monochrome printing for the same cost per page as in-class monochrome laser printers(5).

* The compact HP LaserJet P2050 Printer Series(6) helps boost small work team productivity in enterprise and small to mid-size business environments with fast printing in black and white.

* The HP LaserJet P2030 Printer Series(7) offers fast black print speeds with flexible connectivity options and can produce a broad range of crisp business documents quickly using HP Instant-on Technology(8).

* In addition, HP expanded its document capture portfolio by introducing the HP Scanjet N6310 Document Flatbed Scanner(9). This versatile device can capture a variety of documents – including legal-size documents, business cards, photos and transparencies – at simplex speeds of up to 15 pages per minute (ppm). This easy-to-use scanner is ideal for businesses that need to digitize several types of office documents. The HP Scanjet N6310 also features powerful and intuitive software, effortlessly creating high-quality digitized files for archiving or sharing directly via email, and offers a simple task-based interface with dedicated one-touch scan and copy buttons to increase productivity.

About HP

HP, the world’s largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP (NYSE:HPQ) is available at http://www.hp.com/.

(1) Refers to companies with employee sizes from 500+ onwards.

(2) Source: IDC Asia/Pacific Hardcopy Peripherals Tracker, 2Q2008.

(3) Products are available via contractual basis and may vary by markets in the region. Please contact the local HP representative or HP Approved Channel Partner for specific country pricing.

(4) Available in Asia Pacific with street prices ranging from US$599-US$1,299. Actual price and availability may vary by markets in region.

(5) Compared to HP LaserJet P3005 Printer series, using the HP Q7551X Black Print Cartridge. Yields established using ISO/IEC test standards. Actual yields and costs vary considerably depending on images printed, number of color pages printed and other factors.

(6) Available in Asia Pacific with street prices ranging from US$299-US$549. Actual price and availability may vary by markets in region.

(7) Expected to be available in January 2009 for purchase in Asia Pacific with street prices ranging from US$199-US$249. Actual price and availability may vary by markets in region.

(8) Instant-on Technology uses cutting-edge fuser technology to produce the first page faster when a printer is coming out of low power mode so print jobs are done sooner. An InfoTrends study shows the typical office print job is three to five pages long: www.infotrends.com/public/Content/Presentations/officeprinteruse.pdf. Time to Completion of a typical office print job tested on HP and select competing products. Actual results may vary.

(9) Available in Asia Pacific with street price of US$499. Actual price and availability may vary by markets in region.

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

Monday, December 8, 2008

HP Edgeline One Year Later - From SViP to OPS

The new HP, ex-Xerox technician with 19 years experience and the seasoned selling professional stand shoulder to shoulder staring down at the color, VGA, user panel. Each with the same thought, but neither wanting to say it out loud. The machine before them represents years of research and nearly 1 billion dollars in development costs.

Finally, and predictably, the sales executive turns to the technician and says, "You know what? This ain't a copier."

Since it's release in April of 2007, HP's CM8050/60 has slowly started making waves - however, the seas of the Copier Industry are at 20 feet swells. So much attention given to mergers and acquisitions and financial bail outs that any "ripple" contributed by Edgeline is lost.

To be fair, HPs goals were overly aggressive. To be brutal, HP underestimated their position in the market and the influence of all those perennially content, HP-Centric, Information Technology Directors. And to be just down right nasty, HP didn't survey the selling environment of the everyday copier transaction.

Just because your the biggest, and you product design is based on solid, real world data and you put your pretty, blue logo on it, doesn't mean customers will automatically buy it - There is no "Field of Dreams".

Into the Belly of The Beast - Copier Sales

Have you ever met anyone who likes their copier sales person?

Say what you like, the copier sales person is one of the most tenacious and stubborn persons in the world. He will maneuver, tact, approach and re-approach until the deal is his or the water is so murky his competition is spitting mud for 36 months.

It's a tough racket. And I do mean racket.
  • The copier folks know how to position cost per copy
  • They know how to sell not only the benefits of leasing but also the benefits of PURCHASING.
  • Thirty six, 48 or 60 months all can have benefits
  • "Spifs", promos, discounts, end of month, end of quarter, end of year pricing - file under mundane
  • Leasing, FMV, dollar out, 1-3 month deferred, extra points - yawn
  • Bundled service agreements or separate? Average Up time, no problem. Mean time between failure; machine to technician ratios; Response times vs resolution time, in our sleep
That's the copier world.

A world of ever changing product, hundreds of models, thousands of sales people and millions of pre-trained, indoctrinated customers.

What's the IT Service Provider world?

Words from the HP/IT service provider channel - "I can get you the best price,because I have already registered you (with HP/CISCO/manufacture de jour) ..how many do you need and would you like delivery on Friday or Monday?..."

Some of the statements heard "around the water cooler" and at various seminars, conferences, etc.:
  • Leasing - "...don't you just divide the sale price by the number of months...?"
  • ost Per Copy - "...explain to me how this works, again...? We DON'T invoice them for toner?...but isn't that how we make our margin, on toner?..."
  • Billing- "...wait, our clients are going to receive TWO invoices from us each month? and we bill for "clicks"...what the heck is a "click"??!!"
  • "Meter Reads - "... how do we know how much to bill them?..."

  • "Service Response Time - "...one hour!?...and four hours on site!...that's impossible. Nobody can do that, nobody..."
  • Total Cost of Ownership - "...there is more than just price? What do you mean, "distributed labor rate and cost per square foot...?"
  • Margin - "32 points!!! I don't treat my customers like that, they won't pay over 7%, max."
  • Misc. - "...what in the world is a MIL?"
From the copier dealer to the MFP manufacturer -
  • "your price is too high on supplies..."
  • "why don't you have 3-hole punch?"
  • "your price is too high..."
  • "why is it so difficult to get a "front end" discount structure"
  • "what do you mean, "explain to me how leasing works?"
  • "what do you mean, 'explain to me how CPC works?'"
  • "your machine doesn't have job build?"
So What?-

In one of my entries, I mention how HP is "above the Fray...". They chose not to purchase IKON and chose to march to a different drum. This I still believe, but it may be more akin to "tunnel vision" than Global Vision.

No matter how narrow or focused the vision, it still includes Edgeline and for years to come. For all the great technology, we are still simply talking about a device that puts "marks on paper" - no magic. In an universal sense, devices in this space, put marks on paper. They are all the same.

So, one year into this odyssey, a year that started off focusing on the machine, ends with a whimper but still with a vision. The next year may not be as dynamic as the past, but I am sure there will be more people looking down at machines and saying, "You know what? This ain't a copier- it's more."

"You can go your own way. Go your own way. You an call it Another lonely day...Go your own way"- Fleetwood Mac



- Edgeline -




Saturday, December 6, 2008

Photizo Group Sponsoring New MPS Leadership Awards to Recognize MPS Excellence

Press Release - article to follow at a later date -

Lexington, KY (PRWEB) December 5, 2008 --

For the first time, outstanding MPS innovators will be formally honored with new awards dedicated to excellence in Managed Print Services (MPS). The MPS Leadership Awards were developed to recognize organizations demonstrating leadership in implementing, providing or supporting MPS projects. The MPS Leadership Awards will be presented at the first annual MPS Conference April 26-28 in San Antonio Texas.


"The objective is to showcase MPS excellence and raise awareness about successful MPS programs and their benefits. MPS is gaining strength as an innovative, cost-effective approach to managing business resources, and the total MPS Market in North America and Western Europe will be a $26.7 billion business by 2012. As more companies and vendors adopt the MPS model, it's important to recognize their accomplishments in this increasingly important segment," said Ed Crowley, founder and president of the Photizo Group.

Nominations are now being accepted for the MPS Leadership Awards. The competition is open to any company or vendor involved in the MPS market. Firms of all sizes utilize MPS services, making the award nominations attractive across a broad spectrum of businesses. "In fact, 56 percent of MPS engagements are with companies with less than 1,000 employees," Crowley noted.

Awards will be presented in three categories:

* Corporate MPS Implementation -- Organizations that have implemented an MPS program and use an external vendor to manage the hardcopy device fleet

* MPS Vendor -- Dealers or manufacturers that provide MPS services directly to corporate customers

* MPS Infrastructure Provider -- Manufacturers, software firms and service companies that enable MPS engagements through technology, training, or service

The independent judging panel represents a broad cross spectrum of the industry. Panel members are Ken Stewart (Sharp Business Systems), Greg VanDeWalker (Great America Leasing), Greg Walters (SigmaNet), Kiran Sanghi (IT Executive), Gunnar Lundgren (former HP executive), and panel chairman, Doug Johnson, (former Print Inc. executive, RedSage Consulting).

Award criteria are based on a 50-point rating of MPS best practices and business benefits such as significant cost savings, productivity gains, or other improvements. The Photizo Group is sponsoring the MPS Leadership awards program, including administrative and webinar services to support the judging panel.

Anyone wishing to make a nomination should first complete an MPS Leadership nomination form and submit it to Doug Johnson, MPS Leadership Award Selection Panel Chairman (djohnson @ redsageconsulting.com).

Forms are available at www.managed-print-services.com/MPS-leadership.htm. All nominations are due by March 1, 2009. After completing a nomination form, a complete application form will be sent to the nominated company. Winners will receive free registration for the MPS Conference.

HP Reportedly Freezes Salaries - Pays for Performance

According to reports, HP dispatched the news in an email communique.

Bloomberg and the San Francisco Business Times report that HP is freezing salaries.

"We believe it is prudent and responsible to reduce costs where possible, including travel and event related expenses," said a company spokesman.

"That said, we remain committed to the principle of 'paying for performance'" She added. "High-performing employees will be rewarded and competitively compensated."

According to Bloomberg, HP will only hire workers for “revenue-generating positions,” reduce spending and limit travel to customer-related activities, all contained in an e-mail acquired by the news company.

Year end bonuses are still in play - and according to Silicon Valley/San Jose Business Journal, "The freeze will not apply in countries where they are illegal."

Predictable reaction around the net has been negative. One comment from Colombian.com

"...This is nothing more than a short-sighted effort to prop up corporate profits in a race to the economic bottom. It is a cycle that is not sustainable. It's economically better in the long run to have no profits and remain stable than to short your employees..." - Craig Williams : 12/6/08 7:42am---



Thursday, December 4, 2008

Free Photizo Group Webinar Examines Managed Print Services Outlook in Current Economic Environment

It's just an hour - that's all, one hour.

I have attended more Webinars and GoToMeetings over the past 6 months than ever before - it's no wonder.

And I rarely recommend these kind of meetings - but - the Photizo Group is holding a Webinar on the 11th and I do recommend this to all in the industry.

From the Press Release:

"Webinar attendees will learn why a bad economy may actually be good for MPS, according to Crowley. "This special session will offer a timely look at a critical topic for vendors and users of hardcopy devices.

By 2012, MPS will be a $26.7B business and will account for 35 percent of the total imaging market.

It's something we can't afford to ignore, especially in unsettled economic times like these. As the leading research and consulting firm tracking the MPS market, we believe it is important to clearly communicate how this market is changing, and why changes in the global business environment will fundamentally shape the MPS market over the next few years."


The stat is not puffery; 35 percent of the total imaging market will be MPS in 3 short years.

Why do I recommend this webinar specifically?

I have been following the Photizo group since last spring, and I am involved in some projects with these folks(full disclosure). They know what they are talking about when it comes to MPS, they come out of the industry and out of the trenches and have a keen insight on events to occur over the horizon.

If you work at IKON, Toshiba, Konica Manolta, CBS, RBS or any of the independent dealers; if you sell hardware alone- this hour is for you.

If you provide software and hardware bundled with CPC and MPS engagements - this is an hour meant for you.

If you cold call SMB on shoe leather or develop VITO letters and emails - this hour is for you.

It's only an hour - and yes, nobody on the line is authorized to purchase anything from you, but chalk it up to self improvement, industry awareness and enhancing the single most important six inches in your world.


For more information and to register for the free webinar, visit https://www2.gotomeeting.com/register/735057407.


Virgin Atlantic Selects EDS, an HP Company for Next-Generation Airline Reservation System

News Release :

EDS, an HP company, and Virgin Atlantic Airways today announced they have signed a new information technology (IT) services agreement that extends the companies’ 25-year relationship.

EDS has provided IT services for Virgin Atlantic since its inaugural flight in 1984.

New to this five-year agreement, EDS will provide the next generation of its airline reservations solution, EDS Reservation Services, a part of EDS’ Transportation Applications that EDS hosts and maintains on behalf of its clients. New features included in the solution are Electronic Miscellaneous Documents (EMD), which allow Virgin Atlantic employees to electronically capture and account for ancillary sales, and Ticket Re-issue and Refund (TRR) software that automates a formerly labor-intensive function and improves customer service.

“We are impressed with EDS’ vision for their new reservations platform and how this will enable Virgin Atlantic to exploit a service-oriented architecture (SOA) to provide improved customer services, greater agility and lower costs,” said Mike Cope, IT director at Virgin Atlantic. “This builds on our long-standing partnership with EDS during which time Virgin Atlantic has grown to become Britain’s second-largest airline serving the world’s major cities.”

Also new to the agreement, EDS will use its airline service-oriented architecture (AirlineSOA) that connects software and systems to better integrate Virgin Atlantic’s operations and help meet the airline’s unique market needs. Each of these new functionalities helps Virgin Atlantic lower core reservations services costs and add new revenue opportunities.

EDS will continue to provide passenger-processing services that include applications development and hosting of EDS Reservation Services, which handles approximately 6 million revenue passengers boarded annually for Virgin Atlantic.

“We have built a strong relationship and mutual trust with the Virgin Atlantic team over the last 25 years,” said Jim Dullum, vice president of Global Transportation Industry at EDS, an HP company. “Taking advantage of EDS’ latest technology, software development and delivery expertise and industry knowledge creates the right mix of IT innovation to support Virgin Atlantic’s continued success.”

EDS Agility Alliance partner Microsoft will provide select tools, software and resources to EDS in support of Virgin Atlantic. Together, EDS and its Agility Alliance partners collaborate to design, build and run a market-leading services platform and develop technology-based services to deliver tangible client results. EDS Agility Alliance partners include Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems and Xerox.

As a leading transportation IT services provider, EDS’ end-to-end capabilities encompass air carriers, airports, cruise lines, logistics and modal providers, hotel companies and major reservations networks. EDS brings world-class technology solutions and infrastructure to help transportation and travel-related clients sustain competitive advantage in a highly dynamic global market.

The Future of Paper? - Magic Paper

Last month I wrote about "Magic Paper"

I found this as an update - very cool video.


Click to email me.




Wednesday, December 3, 2008

Managed Print Services as a Marketing Tool to Place More Gear ?


A Managed Print Services program will reduce the Machines In Field - or it isn't Managed


MIF represents the lifeblood of the copier (dealer) business model; the volume and associated service charges generated by MIF is a monthly, recurring revenue. Increasing this revenue usually means adding to the Machines In Field - this also benefits the manufacturer.

So, as an IKON or CBS or RBS, employee, you know how important MIF is and will do most anything to maintain
as well as increase the number.

Additionally, MIF is used to build the compensation base- if you can look forward to re-signing your upcoming, lease expiring, MIF, you can usually expect to make a certain amount of commission.

This model has been in place for decades and has served both dealers and manufacturers well.

But could change be in the wind?

During the past twelve months, we have witnessed the merger of a manufacturer and dealer in our industry. Manufacturers now own the channel to their customers. And today, with the economy "worse than ever before, in the history of the universe..." (gag, get over it) every sales rep is "under the gun" to live and die in 30-day cycles - month after month after month after month...how's that working for you?

The Collision -

Customers are smarter, focusing on cost controls, and demanding more visibility, and accountability - Copier manufacturers' margins are shrinking, and the pressure is on to place more units via any and every technique available.

Rob Sethre, over at Imaging Industry Wall Street Insider mentions, "...MPS provides focus, transparency, and accountability where (to the great benefit of the imaging companies) they were missing in the past. Companies will now identify and control print volumes and, most importantly, restructure their printing environments..."

"to the great benefit of the imaging companies...they(focus, transparency and accountability) were missing in the past..."

The last thing a copier vendor or
old-school copier salesperson wants is for his customer to know the truth, monthly CPC.(lease payment+service + overages/number of images printed)

Studies have shown, again and again, the majority of customers purchase copy machines with specifications well over their actual needs. Indeed, my own fleet surveys, although not scientific, do reveal an average monthly volume of 2,800 images over 1,100 machines.

I use to be surprised but now I simply predict this before the survey - I love to see the doubt/fear fleet across the Facility Manager's face- but that's just me.

It is an observed fact that customers are being oversold by the copier folks - not all the time but most of the time. And the collision is between smarter clients and old-school, equipment-based selling techniques.

More specifically, the clash is between the benefits of a real Managed Print Service Engagement and the wants and needs of the copier manufacturer to move product.

MPS trumps uninformed equipment placement.

Exactly how does this figure into MPS? We can be heroes.

Once an MPS engagement is implemented, the goal is to reduce the costs associated with output - one facet of this approach is reducing the number of machines in the field.

For those of you in a big dealer channel that may now be just a really big manufacturer's distribution chain, when you implement a Managed Print Services program, how easy is it going to be to tell your Sales Manager, "...great news, out at ABC company, we managed to reduce their fleet by 17%, removing 24 copiers!..."?

Here's the worst - some in the industry, may consider MPS as a marketing technique. Just another method supporting more hardware. MPS could be just another "talk track" to get in front of the "decision maker" and sell more gear - not solve more problems.

Think I am wrong? Consider this - why have all business equipment providers embraced "Solutions"? Canon, Konica Minolta, IKON, and Ricoh, all have "solutions" in their quiver of sales blurbs; right next to "first copy out speed" and "scan once, print many". Ready to be
hurled at some unsuspecting target/SMB owner.

Why? The end goal of all this Solution Selling has been and always will be - to move more gear and capture more clicks.

For example, when ABC manufacturing company wants to file and retrieve its production manuals and change orders, one can simply recommend "five of my Canon 5185i's" as an "On Ramp" to your digital archiving system. This is an easy sale - add a 3-hole punch, an 11x17 paper tray, and a booklet maker and your client is good to go.

If you're one of the remaining, independent dealers out there, you can survive and even thrive on a service-based revenue model and maybe even a consultative-based model. But, if you are a manufacturer of machines, everything you do is strategically aligned with your number one goal - moving machines out the door. Period.

By the way, how many independent dealers are left? 2? 3?

Embracing the MPS model isn't about a new market niche, or attacking a segment of up till now unreachable opportunity. Real MPS is not about upgrading old hardware at a lower lease payment(although plenty of copier salespeople and purchasing managers may think so). True MPS is about solving real, everyday problems and saving honest-to-goodness money, cash, greenbacks, yen, lettuce...you get the picture.

We can be heroes-

The amount any company can save on printing could save somebody's job - keeping a family fed and happy.

That's all, just someone's job, not enough savings to support a junket to Laguna Beach or Orlando.

Where's my cape?


Click to email me.




Xerox, and What Mulcahy Thinks About Ricoh, Ikon and VARs

"Times have changed, and there's no question there's more opportunity to be won," - Mulcahy.

Xerox Seeks To Reassure Investors - And Channel Partners - Amid Restructuring

By Chad Berndtson, ChannelWeb
3:52 PM EST Mon. Nov. 24, 2008


The article is a great read, I recommend it.

Here is a summary of the interview, with commentary:

Mulcahy regarding Xerox VARs

"We've seen some pressure [on VARs] trying to keep inventories strong and managing cash -- they're worried about their customers the same as everyone else. But overall, we've seen a good robustness in terms of equipment sales."

The Xerox VARs are still holding firm. - GW

On conflict over the Global deal:

"We have been surprised and delighted that it has not been the case to the degree we thought it might be at the beginning," Peacock said when asked about overlap between Xerox's reseller channel and the Global Imaging Systems side. "We've tried to [reassure] that in this situation, one plus one plus one needs to equal four. This is all about getting Xerox in front of more buying decisions and making sure the customer can get in front of Xerox."

- Understood. - GW

On Xerox reducing R&D resources from 5 percent in 2008 to 4 percent in 2007, and if that meant the company was "giving up on innovation:"

"Absolutely not," she said. "That includes almost nothing upstream in research. If anything, it's the next stage of productivity. We believe we're not sacrificing anything but capturing efficiencies due to the maturity of the business."

- In one of my older posts (The Death of Xerography) I talked about Xerox eliminating R&D in photocopiers. Xerox does not commit any dollars to the future of photocopiers and as Mulcahy states , they are reducing resources to general R&D by one point.

It seems the "propeller-heads", no offense, of PARC are concentrating on Nano-Spring Arrays - and Magic Paper not the ball-mouse. - GW

On Xerox's green strategy:

"[Customers] care. We are literally being asked to present the impact on carbon footprints," Mulcahy said. "There's an environmental impact and also happens to have a great impact in terms of reduction of waste."

Maybe Xerox should refer all those asking about "carbon footprints" over to the HP site. I doubt it. - GW

On cancellations:

"We're seeing nothing materially different. We do think there's a higher hurdle rate for decisions -- more due diligence, the explicitness of ROI. But we've been seeing that for a while, that's nothing new," she said.

Sounds like "cancellations" refers to customers canceling orders or engagements. I like the phrase "higher hurdle rate" - but really, when haven't ROI or due diligence been factors? -GW

On the continued push into SMB markets:

"Five years ago, we would have done very little on the SMB product portfolio," Mulcahy said. "Last year, 18 products were focused on SMB. The fact that we had so little business in SMB for such a long time, well, it's great to go after incremental revenues instead of substitutional revenues. 2008 has been the single biggest year for us in terms of SMB product introductions."

The Global assimilation may have factored in on this- but what in the world is "substitutional revenue"? Lease renewals? Xerox is playing is smaller deals now. - GW

On Ricoh's acquisition of Ikon and how it reshapes the marketplace where Xerox, HP, Konica Minolta and Canon all play:

"Times have changed, and there's no question there's more opportunity to be won," said Mulcahy.

"In terms of IKON, they continue to be our No. 1 competitor in every market we're in,"
Russell Peacock, president, North American Channels Group added, "In terms of their transition to be 100 percent Ricoh vs.Canon - and Ricoh-based, that's going to be challenging for them.

"Typically the customer who has a Canon product becomes very loyal to that product because of functionality vs. Ricoh," he continued. For them to retain that customer is going to be a challenge. It'll be disruptive. In terms of ourselves, we compete with them every day. But we bring a better solution to the table than they do. Let's stay focused and not get preoccupied with other things, because when you do that you get distracted from what makes you great."


Good point. Focus. And just like everybody else, focus on IKON Canon accounts - the blood will be in the water for the next year at least.

Summary -

Xerox is in a good position. They are reducing costs, and extending more into new markets(SMB)plus moving gear.

Xerox is committed to it's VARs.

Looks like the IKON/Ricoh conglomeration represents more opportunity than worry.

Green is everywhere and the decision process is getting more challenging.

New toner, solid ink, and SMB market - the new Xerox.




Toshiba- E-Bridge Fleet Management System



It's all about the M.I.B. No, not Men In Black

Toshiba announced the availability of their new fleet management tool, EBFMS, yesterday.

At first glance, the reports about the system are favorable, but it seems detailed information regarding toner, service etc. are currently reserved for Toshiba gear - with some limited visibility into non-Toshiba units.

I "lifted" this off the Office Product News site which is a post by Corey Smith, from a BLI report at the 2008 Toshiba dealer show, back in March-

"...for larger settings, Toshiba will soon offer its e-BRIDGE Fleet Management System (eFMS), giving administrators the power of centralized monitoring while users benefit from improved availability of devices.

Key operators receive automatic first-tier alerting, while second-tier alerting is available to service organizations. Anybody with administrative access to the utility can clone settings and view meter reads. Via eFMS, administrators can assign costs to specific departments, as well as review device usage and consumables status. Dealers can use the utility to create cost and device streamlining proposals. eFMS can manage other brands’ devices, but only in a limited fashion.

This solution is still under development but should be available in late summer..."


In the beginning there was only WebJet Admin, then a slew of "newcomers" - @Remote,PrintAudit, PrintSolv, PrinteRx, rXpress, etc. and now EBFMS.


In the end, all these tools are beneficial in promoting control of the fleet and transparency of the real costs of printing - knowing how bad it is more than half the battle.


Monday, December 1, 2008

"Managed Print" from Kyocera - Free Prints - In the UK

Kyocera is bundling toner and service into a "package"

Print and Copy for Free with Kyocera, from the Computer Weekly, here.





18 November 2008


Free KYOprint packs available with new managed print service -

Leading document imaging specialist Kyocera is offering free KYOprint packs for a limited time only to customers of its new managed print service. The first KYOprint pack is free when you purchase a Kyocera printer or multifunctional product within the managed service range, which could mean up to 100,000 free prints on both mono and colour packs, depending on the machine purchased.

KYOprint Packs are a new way to buy both your copying and printing facilities from the same reseller. Instead of buying the machine and warranty cover separately and then buying consumables as and when you need them, a KYOprint Pack wraps everything up in a single, simple support guarantee including onsite maintenance and consumables.

Uniquely, there is no minimum volume agreement so users aren’t charged for pages that they don’t print. Each KYOprint Pack includes enough consumables to print a specified number of pages. If you print less than expected, your KYOprint Pack will simply last longer than expected. If you print more than expected, you won’t receive any “excess page” invoices at premium prices, you’ll just need to buy a new KYOprint Pack a little sooner. Because there is no minimum volume restriction, a KYOprint Pack gives you an incentive to reduce print volumes and minimise your environmental impact: the less you print, the longer your KYOprint Pack lasts.

KYOprint packs are available for all Kyocera printers and MFPs, personal to departmental, mono and colour and will suit small or large organisations, especially those that want all printing and copying facilities provided by a single supplier. And the managed print service includes installation and configuration, so there’s minimal impact on your IT department when a new machine is installed.

These free KYOprint packs are available until the end of December 2008 only and more information can be by calling a Kyocera specialist today on 08457 103 104 or visiting http://www.kyoceramita.co.uk/mps

Friday, November 28, 2008

Xerox Set to Release Solid Ink MFP -2009

11x17, from BLI...

Xerox is releasing a new MFP based on the solid-ink technology it purchased along with Tektronix in 2000.

From the BLI report,

"...Xerox is readying an A3-class color MFP based on its solid-ink technology as a competitor to 11" x 17" color laser engines and HP’s Edgeline inkjet-based offerings. Pioneered by Oregon State University researchers in the 1980s and commercialized by printer maker Tektronix (Xerox acquired the color printing and imaging division of Tektronix in 2000), solid-ink engines are currently used by Xerox in some A4-class printers and MFPs such as the Phaser 8860 family (which includes the 8860 and the 8860MFP). The technology uses melted ink sticks, as opposed to toner particles or liquid ink, to render an image..."


The technology is good- ease of use in terms of adding "toner", and the Green value with no empty bottles or cartridges.

I wonder if Xerox has figured a way to prevent the color pie chart from melting off your proposal while it sits in the car on a hot summer's day...

Something Completely Different - "Hydropolis"

20,000 Leagues Beneath the Sea - Hydopolis

Currently under construction in Dubai, Hydropolis will be the world's first luxury underwater hotel. It will include three elements: the land station, where guests will be welcomed, the connecting tunnel, which will transport people by train to the main area of the hotel, and the 220 suites within the submarine leisure complex. It is one of the largest contemporary construction projects in the world, covering an area of 260 hectares, about the size of London's Hyde Park.

"Currently under construction in Dubai, Hydropolis will be the world's first luxury underwater hotel."

"Hydropolis is not a project; it's a passion," enthuses Joachim Hauser, the developer and designer of the hotel. His futuristic vision is about to take shape 20m below the surface of the Persian Gulf, just off the Jumeirah Beach coastline in Dubai.

The 220-suite hotel was due to open by the end of 2006 but has experienced delays and is now scheduled to open in 2009. It will incorporate a host of innovations that will take it far beyond the original blueprint for an underwater complex worthy of Jules Verne.

There are only a few locations in the world where such a grandiose dream could be realized. A high proportion of today's architectural marvels are materializing like fanciful mirages from the desert sands. We have come to expect extravagant enterprises to be mounted in the Middle East, and especially in Dubai. "This venture could only be born here in Dubai," says Hauser. "It [has] a very open-minded, international community - and that's what makes it so special."

The land on which Hydropolis is being built belongs to His Highness General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai. It was his last free beach property on this stretch of coast. The project is a fantastic one, yet Sheikh Mohammed's success record with comparable schemes instils confidence that science fiction can become fact. With his support, several companies have been formed to kick-start this phenomenal project, and around 150 firms are currently involved.

"There have been many visions of colonising the sea – Jules Verne, Jean Gusto and several Japanese architects – but no one has ever managed to realise this dream," says Hauser. "That was the most challenging factor, and that's what makes it so fascinating. Despite being a dream of mankind for centuries, nobody has ever been able to make living underwater possible."


UNDERWATER HOTEL DESIGN

The original idea for Hydropolis developed out of Hauser's passion for water and the sea, and goes much deeper than just building a hotel underwater. More than just curiosity, it is a commitment to a more far-reaching philosophy. "Once you start digging deeper and deeper into the subject, you can't help being fascinated and you start caring about all the associated issues," he explains. "Humans consist of 80% water, the earth consists of 80% water; without water there is no life."

Hydropolis reproduces the human organism in an architectural design. There is a direct analogy between the physiology of man and the architecture. The geometrical element is a figure eight lying on its side and inscribed in a circle. The spaces created in the basin will contain function areas, such as restaurants, bars, meeting rooms and theme suites. These can be compared to the components of the human organism: the motor functions and the nervous and cardiovascular systems, with the central sinus knot representing the pulse of all life.

The ballroom, located at this nerve centre, will have asymmetrical pathways connecting the different storeys along ramps. A large, petal-like retracting roof will enable the staging of open-sky events. Staircases, lifts and ramps will provide access to the ballroom, while flanking catering areas will supply banquets and receptions.


HYDROPOLIS LAND STATION

In order to enter this surreal space, visitors will begin at the land station. This 120m woven, semicircular cylinder will arch over a multi-storey building. On the lowest level passengers board a noiseless train propelled by fully automated cable along a modular, self-supporting steel guideway to Hydropolis. A just-in-time and on-demand logistical system will facilitate efficient supply of goods to the hotel.

The upper storeys of the land station house a variety of facilities, including a cosmetic surgery clinic, a marine biological research laboratory and conference facilities. On the lower levels are the staff rooms, goods storage and loading areas, and hotel and parking areas.

The land station also includes a restaurant and high-tech cinema screening the evolution of life in the ocean and the history of underwater architecture. As a finale, the screen will open to reveal the real-life Hydropolis. A viewing platform at the front opening of the spanning roof will allow views of the architecture as well as the light shows of Hydropolis.

MARINE ARCHITECTURE

This structure promises to be a conceptual as well as a physical landmark. While human beings accept the existence of water, we have only a superficial appreciation of its significance. "We waste it, go swimming in it and generally take it for granted," says Hauser. "Humans could actually live self-sufficiently underwater, generating energy, nurturing food supplies and so on. This is why we are starting a foundation to demonstrate something of the importance of water in our lives.

"My general plan was to create a living space in the sea. My initial proposal was a deep-sea project, which looked very different. I had to adjust to the local reality of the natural surroundings and change to a shallow-water construction.

"We want to create the first ever faculty for marine architecture because I believe that the future lies in the sea, including the future of city planning. I am certain that one day a whole city will be built in the sea. Our aim is to lay the first mosaic by colonising the sea."

Hauser plans to incorporate many different elements associated with the sea. The cosmetics will be ocean-based, the cinemas will screen films that focus on aquatic themes and a children's seaworld will educate as well as entertain.


He views his creation as a place where those who do not dive – or do not even swim – can experience the tranquillity and inspiration of the underwater world. "We are expecting around 3,000 visitors a day in addition to the hotel guests. The aim is to inspire people to develop a new awareness of the sea."

As well as emphasising the positive aspects of water, Hauser also believes we are systematically destroying marine life, and thus wishes to draw attention to various dangers and problems, such as the loss of algae and the destruction of the coral reefs.


Article here.

Contact Me

Greg Walters, Incorporated
greg@grwalters.com
262.370.4193