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DaaS as a new offer: HP and Xerox expand business relationship
HP Inc. (NYSE: HPQ) and Xerox Corporation (NYSE: XRX) announced an expansion of the companies’ business relationship.
Xerox will source from HP certain A4 and entry-level A3 products with the majority running on Xerox’s award-winning ConnectKey®controller software, and Xerox will supply toner to HP for these and other products.
In addition, the companies have agreed to partner in the Device as a Service (DaaS) market[a new model related to the already established Software as a Service (SaaS) model].
Xerox will become a DaaS specialist in HP’s Partner First program in the U.S. Xerox’s services capabilities and customer reach in the small to midsize business market, combined with HP’s award-winning DaaS PC offerings, will allow both companies to meet a wider range of customer needs. Xerox will be authorized to sell HP PCs, displays and accessories to its commercial customers through DaaS. HP will also make Xerox’s cloud-based content management platform DocuShare® Flex available on its commercial PCs distributed in the U.S.
The companies will announce release dates for the relevant A4 and entry-level A3 printers closer to product launches. Xerox expects to begin offering HP DaaS to U.S. customers in the second half of 2019.
Our Take
Great task which shows the power of the subscription approach also in the Office Workspace.
Comment by CRN
Heidelberg Subscription is intended to compensate for the decline in sales and to support the printing industry in once
The structural change process in the print industry is far more intense than expected.So far, the ultimate-newest print hardware technologies have been the drivers of success. Now, only established process technologies in print have been replaced by new, e.g. Inkjet printing, to replace, does not continue in sum.
Accordingly, the investment potential of print companies decreases dramatically. In Germany, as in the rest of the world, more and more printers are shying away from buying print equipment.
The holistic approache by subscription: adapting the business strategy of printing companies to the requirements of digitization, respectively to benefit fully from digital transformation.
”The increasing share of recurring contract business will have an increasingly stabilizing effect on our total sales,“ said Rainer Hundsdörfer, CEO of the company. “We will counter the negative impact on earnings with short-term measures and sustainable structural improvements. The successful expansion of the contract business [by subscription] means that the customer relationship is sustained at a higher share of wallet as a basis for business that is more resistant to cyclical fluctuations.“
Outlook:Investment projects in the new product and solution offerings from Heidelberg’s ongoing digital transformation will be implemented as planned. The goal remains to strengthen the contract and subscription business with recurring revenues, to expand the share of wallet per customer and to significantly reduce the impact of economic cyclicality on the company.In the medium term, the share of sales from recurring contract business is to be increased to around 1/3 of total sales.
Our Take
The global printing industry could keep its important role as a a driver of innovation in the field of media & marketing communication if investments will not be a burden any more. It’s crucial to keep the best competitiveness and to deliver best services to end customers.
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