Are you ready to farm out all the management of your printers and copiers too? Hewlett-Packard thinks so.
Vyomesh Joshi, executive vice president of HP's Imaging and Printing division, said the company is increasingly focused on enterprise services and management of printers and copiers. It has more than $2 billion in annual contracts signed with the likes of Delta, Apple and 3M and plans to accelerate growth.
"On services and software our market share is very low," said Joshi, speaking at HP's analyst meeting. "By leveraging the TSG group (Ann Livermore's unit) we can go after that. We believe this is a tremendous opportunity for us. We know the market is shifting with the convergence of copying and printing. CIOs are saying let's get the cost out and end the war with facilities."
Joshi's pitch is that HP can improve productivity by 20 to 30 percent and lower costs by the same percentages. HP's first target is vertical markets with paper intensive processes.
Add it up and HP sees printing as another entry to enterprise accounts. And it just may work--few CIOs pay much attention to their printing costs, printers in inventory and management of them.
Enterprise printing strategy (Source: HP)
Other takeaways from Joshi's talk:
--Joshi sees opportunity in every printed page from a Mexican election poster to that spreadsheet coming out of an inkjet. Joshi said there were 46 trillion pages printed in 2005 and 8 percent of those were digital. According to HP estimates, there will be 52 trillion pages printed by 2010 with 10 percent of those digital. HP's plan is to get a slice of every page printed. "Our focus is going to be on high use customers," Joshi said.
Source: HP internal
--Pricing on printers. Joshi said HP isn't interested in pricing wars. He added that the company has taken costs out of printer manufacturing so his division can maintain operating profits.