Monday, December 14, 2009

Tidbits on the Copier/Printer/Software Industries for the Week of 12/14/09


The Allentown, Pennsylvania mistakenly blew up a toner cartridge, after someone mistook it for a bomb.

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Results of managed print services survey conducted by Quocirca Research reveal:
- 70% said that better management of their print infrastructure is strategic imperative
- 90% will continue with plans to deploy managed print services
- 41% said that printing accounts for more than 10% of their IT budget
- Financial services companies report that printing is 65% of their budget
- Almost 50% believe that implementing an MPS program will cut their total costs by at least 30%
- 60% of current MPS users are satisfied with cost savings achieved
- 25% of current MPS users claim their savings are exceeding original estimates
- 80% stated that when they chose their MPS vendor, the most important point was vendor’s perceived capacity to manage devices of multiple brands

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Oce’ is protesting a copier bid awarded by the Union North Public School District in South Bend, IN. Oce’ was the incumbent, but the school district decided to switch to local dealer, Adams Remco, a Toshiba/Savin dealer.

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Street pricing seen in the print for pay marketplace:- Xerox 700 Digital Color Press with external Fiery/LCT/stapling finisher for $42,050. Color clicks for $0.049 and b/w clicks for $0.0129. Single click 11”x17”
- Canon imageRUNNER ADVANCE C7065 w/Fiery/LCT/booklet maker for $26,600. Color clicks for $0.05 and b/w clicks for $0.0125. 11”x17” billed as one click.
- Canon imageRUNNER 7095 w/Fiery/booklet-maker/LCT/hole-punch/cover inserter for $24,900. B/w clicks for $0.0042. 11”x17” billed as one click.

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According to Strategy Development, annual placements of A3 copiers have dropped from 1.3 million in 2007 to 900,000 in 2009, or a 30% decline in volume.

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An Australian copier dealer buys a dealer in New Zealand. CSG, with annual revenues of $197 million, purchased Onesource Group, a large Konica Minolta dealer, for $132 million.

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BLI gave out “Pick of the Year” award to document management software from Laserfiche.

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BLI also gave out “Pick of the Year” awards to the new Konica Minolta bizhub C220, C280 & C360 color MFP models.

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Sharp announced that it won “Line of the Year” from Buyers Labs Inc. BLI editor, George Mikolay, stated that reason for win was; “clear level of differentiation from its competitors”

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Buyers Labs Inc. awarded Fujitsu with “Scanner Line of the Year” award for reliability and productivity.

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Panasonic completed its acquisition of Japanese rival, Sanyo Corp.: - makes Panasonic a dominant player in hybrid car batteries
- Panasonic apparently has 1.46 trillion yen in the bank
- Reportedly paid 403 billion yen for Sanyo

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Need proof that Canon is still using pulverized toner? The warm up time for fuser on the new Canon imageRUNNER C7065 (which competes against the bizhub C652) is a whopping 6 minutes.

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Samsung of Korea recently held their annual dealer convention in Las Vegas, and announced that they plan on launching a new line of A3 models to compete against Japanese vendors. In addition, supposedly they also previewed a prototype 70ppm color laser MFP model.

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The University Medical Center in Las Vegas is in hot water, after the local newspaper, The Las Vegas Sun, discovered that someone was stealing medical records and selling them to “ambulance chasing” attorneys. Hope Hammond, Chief Privacy Officer, stated; “We’re going to have pin numbers applied to the copy machines so that employees are going to have to log in when they want to use the copier.”

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Hewlett Packard’s CFO, Cathie Lesjak, stated the following about 2010 spending:
- HP is looking to capitalize on “flush” enterprise budgets in U.S.
- Upcoming corporate IT hardware refresh cycle
- Businesses must replace aging equipment
- Has recommended the HP sales employees not take year-end holiday break to capitalize on sales opportunities
- Company was confident that HP can increase earnings per share “significantly faster” than revenue
- “We are definitely seeing an uptick in demand for printers”
- Expects to work through shortage of laser cartridges by end of first quarter of 2010

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Industry analyst, Gartner, predicts that color printing hardware, including MFPs, will have a drop in average selling price of 15.8% by 2011. Other comments:
- Half of office employee’s time is spent printing and looking for documents
- 90% of office documents are printed in b/w
- 10% of office documents are printed in color
- 50% of office’s printing costs are for color documents
- Buyers are advised to refresh their color printers/MFPs every three years to take advantage of advances
- Recommends that buyers switch from color printers to color MFPs to take advantage of cost savings and utilization of cost accounting and scanning functionality

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Ricoh’s managed print services program has 4 phases, according to Brian Healy, Ricoh’s Market Development Manager:
- Phase One: Ricoh uses DOCutivity (formerly a Lanier program) to assess current document output environment and identify technologies, associated costs, and process workflows in place
- Phase Two: System architects design a new document management workflow blueprint that focuses on security regulations, process improvement, total cost of ownership, and environmentalsustainability
- Phase Three: Transformation of old workflow to new and improved version that introduces new technologies to reduce risks, enhance efficiency and make document management easier for end user
- Phase Four: Manage the fleet, provide operation improvement, support services and remote management of new and existing systems. Assist client in changing their output practices across entire organization. Utilize a branding campaign that includes marketing materials to generate awareness, develop desire, educate and reinforce program principles.

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Xerox managed print services study causes turmoil at Cleveland State University:
- University administration awarded Xerox a contract to conduct an MPS study of campus
- Recommendations call for centralization and streamlining of print management on each campus
- Contract requires usage of a central MFP by department or floor
- Professors are complaining, as their current contract requires that the university provide them with a personal printer.
- Professors are refusing to give up their personal printers, claiming it is an issue of privacy
- University is claiming that if personal printers are given up, the campus will save up to 20% on energy bills alone, not to mention supply costs

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Xerox claims that its managed print services program now has 1.5 million devices being monitored worldwide.

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PrintWeek magazine reports that Xerox is suffering from a large toner backorder. Details:
- According to printshops surveyed, customers have been told that they may have to wait 10 days
- The main product affected is apparently the Xerox 700 Digital Color Press

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Researchers at Stanford University claim they can make batteries out of copier paper:- Liangbing Hu, author of research stated; “Standard copier paper used in our everyday life can be a solution in storing energy”
- Paper is painted with an ink made up of carbon nanotubes
- Coated paper is then dipped in lithium-containing solutions and an electrolyte
- Chemical reaction then starts to generate electric current
- Paper use could reduce weight of batteries by 20%
- Possible use is in future electric automobiles

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According to InfoTrends, the digital color market is expected to grow from 116 billion impressions in 2008 to 262 billion in 2013. This includes an expected 53% growth in output from continuous feed systems (roll fed)

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Hewlett Packard getting bad press over the lack of success with the print cartridge recycling program it offered the State of California. Details:
- HP created program to win bid to capture printer/MFP business from state agencies
- Customers must pay to ship cartridges to a facility in Virginia
- Customer accumulate points for each cartridge they send, which can be redeemed for a new HP printer
- Some color cartridges are inadvertently being sent back that are not actually empty, as some HP printers were found to have falsely stated the cartridges were at end of life
- Some believe that HP is only taking cartridges back in order to keep them away from refilling operations

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HP management shakeup. David Murphy, executive VP of Imaging/Printing Group is out, and replaced by former Pepsi executive, Ron Coughlin.

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