Weekend MFP Industry Notes Newsletter
9-27-09
Two former members of the famed Xerox Palo Alto Research Center (PARC) were honored guests recently at the University of Texas (UT) in Austin, TX. UT alumnus, Bob Taylor, spoke to students about his work at PARC and how his team developed computer networking in 1970. UT President Bill Powers announced that one of Bob’s former employees had created a $100,000 graduate scholarship in his honor. The former employee, Charles Simonyi, took his work at PARC, and left to help Microsoft develop MS Word & Excel.
During a tour for the press, Xerox’s Adela Goredema, a scientist at the Xerox Research Centre in Mississauga, Canada, announced that the company is working on a new color printer technology. It will use liquid wax that becomes rock hard when exposed to ultraviolet light. Other innovations being worked:
- a flexible computer monitor that can fold neatly into a briefcase
- a smart hospital gown that monitors your vital signs and displays them for doctor
- new print driver for production print devices that allows end user to preview from all angles, the finished flap-paneled color brochure on screen
- OPC drum that lasts the life of a copier using nontechnology to design molecules with self-healing capabilities to repair the drum on its own
- Reusable paper that erases itself in 3 days, or instantly with a special light
Xerox announced it is now shipping new EFI Fiery print servers for the new DocuColor 7002/8002 production color laser systems that take advantage of the built-in spectrophotometer, for integrated calibration and custom color profile creation.
Xerox in court. The U.S. Supreme Court is scheduled to consider Conkright vs. Frommert, a dispute over the way that Xerox chose to calculate more than $20 million in pension benefits. Attorney Peter Stris stated; “Xerox has tied up dozens of longstanding employees for over 10 years in litigation where these folks have not received pensions for their service.”
Xerox announced it won a bid from Atos Healthcare, which has 12 medical service centers and 276 medical examination centers in England.
When Xerox launched the ColorQube color wax copier, it engaged 30 employees to visit blogs to drive interest in the product. They also monitor negative comments about the device, and respond back on the web to counter the negative info, but do not identify themselves as Xerox employees.
When asked how Xerox would respond to Hewlett Packard’s big announcement last week that its EDS division would offer Canon copiers, Xerox VP, David Bates said:
- “EDS did not sell these kinds of products in the past.”
- “They may have a relationship with the customer, but do they have the experience to know how to optimize these products?”
- “Do they have workflow knowledge?”
- “Xerox has been offering managed print services for 10 years”
- “I think there will be a lot of work for our competitors to figure out how to catch up with us”
- “There is a lot of training that has to go on”
- “Selling a service is quite different from doing a bid on hardware”
In an effort to cut costs, Xerox announced it is switching its auto fleet from 6 cylinder to 4 cylinder company cars for its technicians. It also will be giving them all GPS, as it found that using GPS resulted in another service call per day, and up to 30% increase in work volume, due to the knowledge that they were being monitored.
Xerox announced it won a bid to supply 400 MFPs to Rompetrol Group, an oil company headquartered in Amsterdam.
Competing against the Xerox ColorQube color wax copier? More points to remember:
- No PC faxing, only offers faxing from the glass, not able to fax from your desktop PC
- The copier zoom ratio is only in 1% increments
- Has a large footprint (55” wide), usually 2 feet wider than a competitive MFP of the same speed
- Issues printing on postcard stock, as the maximum paper weight is only 80lb. cover
- Apparently does not handle coated stocks well, as the wax may not stick to gloss
- The hard drive is only 80GB
- If it is so reliable, then why does ColorQube offer a nozzle malfunction feature?
- From a power off mode, it takes almost 20 minutes to warmup
- The first copy out time is a slow 8.1 seconds
- Does not actually produce a true black (the process black wax has a greenish gray tint)
- Does not offer scan to USB memory stick feature
- Does not offer a print around feature, so a print job that does not have matching paper,
will hold up print jobs behind it
- When making copies from platen glass, must place originals in the top right hand corner
- When inkjet printhead is being cleaned, engine slows down to 26ppm
- Control panel does not tilt or swivel
- Control panel does not offer enlarge display mode
- No scan preview available
- No one touch keys
- Unable to save LDAP address searches
Fuji of Japan, maker of most Xerox copiers, announced its green initiative called “Eco Solution”:
- “Optimization of Output” = replacing single function devices with MFPs to control costs
- “Optimization of IT Devices & Document Management” = store, retrieve and share documents using doc management software
- “Optimization of Print OnDemand” = reduce waste of outsourced documents
Fuji also announced that it will use Salesforce.com for its CRM application for its copier sales reps in Asia and Australia.
Fuji claims it has sold 200 each of the new Xerox 700 Digital Color Press in Australia.
Apple Computer is reportedly working on a product to compete with net book computers. The rumored new Apple Tablet, would possibly offer:
- price tag of $599
- resemble larger version of Apple iPod Touch
- surf the Web
- play movies
- Gene Munster, an analyst with Piper Jaffray, predicts Apple could sell 2 million of the new product
In the new Microsoft operating system, Windows 7, is placed a fully licensed copy of XP operating system running in a virtual machine, allowing any program that absolutely has to run in XP, to do so at near native speed.
Former Microsoft executive, Michelle Hodges, has joined document management software company ReadSoft, as its Director of Channel Sales.
Fedex Office (fka Kinko’s), the print for pay chain, announced its last quarter revenues were down 12%. It also launched a web-to-print solution, allowing end users to place their print orders on-line, called the Fedex Office Design & Print Center.
Pantone, a division of X-Rite Corp, announced a new application for the Apple iPhone. Called, myPANTONE, end users can take a picture using the iPhone, and the software will match it up with the closest Pantone color. The company also confirmed that former Ricoh executive, Ron Potesky, is now Pantone’s Senior Vice President & General Manager. Prior to Ricoh, Ron worked 7 years for Canon.
Another Canon attempt to diversify from copiers and cameras has failed? Apparently, Canon attempted to enter the high end lithography business for use in LCD and computer chip production. The company installed a $90 million 193nm immersion tool in 2007, and is reported to be having technical problems with the machine. It is trying to enter a market dominated by Nikon of Japan, and ASML of the Netherlands.
More details emerge about the new Canon imageRUNNER ADVANCE MFPs:
- apparently end users can change the wallpaper of the MFP’s touch screen LCD display
- can personalize their printing workflows
- new Advanced imageCHIP system means that copiers have two processors inside, one for image processing and one for information processing
- full color 8.4” SVGA TFT LCD touch screen control panel on some models and 10.4” on others
- support up to 300gsm on some models
- Advanced Box allows jobs to be stored on hard drive
- Software options that are part of the imageRUNNER ADVANCE Essentials package:
- “Desktop” is a client based device dashboard application to manage print operations
- “Tracker” is a cost recovery tool
- “Composer” allows customizing multi-step workflow functions into a single button
- integration with Microsoft SharePoint
- “Remote” allows for auto submission of meter reads and service call submission
- “Enterprise Management Console” to monitor activity of fleet
- 1200x1200dpi
- use “pQ” toner without need of fuser oil
- PostScript will be an option for the built-in generic controllers, and offer Fiery as alternative
- C9075 has base MSRP of $50,000
- C9065 has base MSRP of $40,000
- C7065 has base MSRP of $35,000
- C7055 has base MSRP of $28,000
- C5051 has base MSRP of $18,500
- C5045 has base MSRP of $17,000
- C5035 has base MSRP of $12,400
- C5030 has base MSRP of $11,400
Canon launched imageWARE Document Server offering:
- Check In/Check Out
- Version Control
- Full Text Search
- Audit Trail
- User Index Search
- Developed using Microsoft Windows SharePoint Services
Canon launched uniFLOW 4.0 Output Manager featuring:
- Universal print driver
- Interactive rule based print job routing
- Authorization workflow
- eCopy Secure Print Client
- web job submission/ticketing
- comprehensive queue management
- prepress make ready
- document security options
Canon announced it will spend $270 million to steamline design and product data systems throughout the company in 2010, by consolidating its two 3D CAD systems and standardize those for managing product data.
Treeno Software, maker of enterprise content management (ECM) software, announced a new module that allows it to integrate with Salesforce.com, a customer relationship management system.
Dell Computer fights back against Hewlett Packard. Not to be outdone by arch rival HP buying Electronic Data Systems (EDS, founded by Ross Perot), Dell spent $3.9 billion to buy Perot Systems, which also was founded by Ross Perot. This will allow Dell to gain ground in the services businesses, including managed print services.
IKON, a division of Ricoh, announced it has sold a Ricoh Aficio PRO C900 production color laser system to an AlphaGraphics location in Fort Worth, Texas.
Ricoh has filed a lawsuit against Okidata. Apparently, the two have been negotiating since 2006 in regards to use of patents that Ricoh claims are used in Okidata MFPs and printers. Ricoh claims that 8 of its patents are involved, and the lawsuit seeks to stop sales of Okidata MFPs and printers in the U.S., unless Okidata pays the license fees.
Ricoh announced it has certified, and will offer an embedded software solution from Notable Solutions Inc. (NSI)
- Offering the new NSI AutoStore 5.0
- Allows documents scanned into Ricoh Aficio MFPs to be automatically routed
- OCR on the fly
Ricoh’s CEO, Shiro Kondo, announced the company’s support of the Copenhagen Communique on Climate Change (i.e. global warming prevention)
Ricoh’s InfoPrint division (formerly a division of IBM) announced it now offers a full line of variable data, and transpromo solutions to bundle with its printers and MFPs, including products from following software firms:
- Enfocus
- GMC
- IoFlex
- Objectif Lune
- Press-Sense
- Rochester Software Associates (RSA)
- Ultimate
Ricoh now shipping the BK5010e Production Booklet Maker option for its production print devices featuring:
- Actually made by Plockmatic Corp.
- Can be on-line or off-line
- Can make booklets for up to 30 sheets (20lb. bond)
- Optional BF5010e Book Fold Unit provides a square fold to booklet
- Staples are 5000 per cartridge for $102.00
- Handles up to 12”x18” paper
- Optional TR5010e Trimmer has air jets to assist with trim waste
Kodak announced that is Creo IC-304 Plus print server has been approved and licensed by Pantone Corp. for use with Konica Minolta bizhub PRO C65hc production color system.
Kodak completed its acquisition of Bowe Bell & Howell (BBH) scanners:
- 50 employees were retained
- BBH had just released new scanners that use LED lighting
- One of BBH’s largest customers is Fedex, which has 2,000 of its scanners
- Kodak now has a product range from 20ppm to 400ppm
- MSRPs range from $495 to $99,995
Kodak announced it will offer software from MMR Information Systems Inc. as a bundling option with its scanner. MMR’s MyMedicalRecords software allows doctors to manage their electronic patient records.
Riso announced a new option for its high speed color inkjet printers. Details:
- Riso AR9100 option handles from 4”x6” to 10”x13” envelopes
- Handles card stocks up to 8.5” x 5.5”, and up to 110lb. index in weight
- Since there is no heated fuser section, it can handle window envelopes,
as the wax paper windows will not melt
- Base MSRP of $6295.00
- Works with the Olympus made Riso HC5500 and ComColor series
According to research firm, Qoucirca, only 20% of enterprises are using some type of managed print services.
A leading healthcare industry supply contracting company awarded a 3 year managed print services contract to WorkflowOne of Dayton, Ohio. Novation has more than 2500 members, including VHA, Inc., University HealthSystem Consortium (UHC) and connected to the 14,000 members of Provista, LLC. The contract is expected to produce $1.5 billion over the course of the contract. The contract also includes forms, labels and marketing collateral.
Former Hewlett Packard executive claims his former employer spied on him. Karl Kamb Jr., formerly HP VP of Business Development & Strategy, claims that HP hired private investigators to impersonate him in order to obtain confidential home & cell phone records. He also claims that when he was at HP, the company ordered him to uncover details of rival Dell Computer printer products.
HP announced it won a 7 year managed print services contract from S.A. Vale, a large mining company with headquarters in Brazil.
HP’s CFO, Cathie Lesjak, told financial analysts that she expects the company to grow 3-5% in 2010, but printer and MFP sales only up 2%.
An interview with Hewlett Packard executive Tom Codd, Director of Enterprise Marketing, revealed more info on its new Canon relationship:
- “As the alliance with Canon evolves, HP will assess the possible extension into the channel space. This could include, but not be limited to, some select OPS partners that will be designated as agents”
- “Canon will provide servicing and support for their full range of MFDs. HP will remain the initial point of contact for the customer in support, break/fix and supplies replenishment situations”
- “Canon service personnel will be dispatched for the actual support work”
- “HP continues to sell the CM8060 and CM8050 MFPs with Edgeline Technology”
A major chain of print for pay franchises gives Konica Minolta a coveted award. Allegra Network (Allegra Print & Imaging, American Speedy Printing, Insty-Prints, Zippy Print, Speedy Printing, etc.) gave out its “Supplier of the Year” award to KMBS. Tim Wood, VP of Technology for Allegra said KMBS won the award because:
- “Receiving this award shows a dedication not only from the corporate staff at Konica Minolta but more importantly the technicians in the field”
- “Konica Minolta has put together a very strong program for our system and it is good to see this hard work is being recognized”
A survey conducted by AIIM revealed the following:
- 55% of companies set no guidance on dealing with important emails as records
- 26% have no electronic records management policy
- 38% conduct little or no enforcement of document management policies
- 44% have no procedures for freezing electronic records in the event of litigation
- 70% have made no plans for long term archiving of electronic records
- 50% admitted to printing Microsoft Office documents or email data and using them as paper records
- 70% reported an increase in volume of electronic records
- 13% were using dedicated eDiscovery tools
- 47% found managing electronic documents a challenge
- 22% said that their paper volumes were beginning to decrease
- 33% plan on transferring documents to PDF-A format in three years
- 33% would not be confidant that their electronic records had not been changed, deleted or inappropriately accessed
A man who invented way to make an inkjet printer assemble living human cells into skin, is awarded $900,000 in a court case. Researcher, Robert Kiebe, won a trial that forces his current employer, University of Texas Health Science Center, after a jury found that UTHSC caused him mental anguish after it tried to push him out of the University and profit from his invention.
ASI Business Solutions, a copier dealer in Dallas, Texas, purchased another dealer in the area, named Advantage Copier Equipment. ASI announced it will not retain the acquired dealer’s employees. Scott Wiggins is executive VP and co-owner.
According to Paystream Advisors:
- only 45% of Fortune 1000 companies have invested in document imaging systems for invoices.
- 44% don’t use OCR for invoices at all.
- Only 16% use OCR for more than 40% of their invoices
The Financial Accounting Standards Board (FASB) announced new reporting rules that may impact the industry:
- FASB changed its requirements concerning companies that report the revenue of hybrid products, or “vertically integrated stack of hardware, software and service to customers” over
the life span of the product.
- Under previous rules, companies had to amortize hardware, software and services over eight quarters or a two-year period, which meant recognizing only 1/8 at a time (12.5%).
- Under new rules, hardware can be recognized immediately while software and service still amortized over life of product.
- Most firms will have to wait until fiscal years that start after 6/15/2010 to use the revisions.
According the U.S. Bureau of Labor Statistics, the high-tech industry shed 115,000 jobs between January and June of this year. From June of 2008, through June 2009, the total loss is 224,100 jobs.
More details from the recent Sharp copier dealer meeting held in Washington DC:
- Keynote speaker was Steve Forbes
- Sharp’s U.S. copier revenue was down 3% at end of fiscal, but up 10% in first 5 months of new fiscal
- Has sold approximately 7,000 of the A4 “Frontier” MFPs since launch
- Gary Bailer, product manager for the Frontier series, stated that in order to boost sales of this product through its dealers, the company would drop dealer cost by 24% for black toner & 5% for color toner for A4 color MFPs, and 19% for black toner for black only A4 MFPs
- Now has 135 software firms in its embedded solution developer partner program, with 67 vendors on hand to demonstrate their products
- Now offers ability for end user to change backgrounds and make custom icons on its
MFP’s color LCD control panel
- Launched a universal print driver
- Will launch its managed print services program, and call it “Remote Fleet”, based on
offerings from Compass, LMIT and Print Audit.
Lenovo Group, which purchased IBM’s PC unit in 2005, announced a $16 million quarterly loss due to slow economy.
Okidata announced it is partnering with Dalian University of Technology in China to establish a joint research center on future print technology. One of the projects it will work on is an automatic printer connect to WiFi.
Kofax, maker of scanning/document management software, announced it has purchased ISV 170 Systems of Boston, MA., which develops workflow software for invoice processing. Purchase price was $32.9 million, and the acquired company had 150 customers (i.e. ADT, Con Agra Foods, etc.), primarily those using Oracle or SAP.
Kofax also announced a promo where it bundles its entry level “Kofax Express” software with selected Fujitsu scanners.
Panasonic stated it will suffer a loss of $574 million for its fiscal first quarter due to drop in demand.
According to PrintAudit, the following is to be considered when selling managed print services:
- 42% of global wood harvest is dedicated to paper production
- 5.4 million tons of paper are consumed annually by U.S. companies
- Up to $1000 per year is spent per employee for printing/copying
- 10,000 pages per year on average is printed by employees
- It would cost $150,000 to fill your car’s gas tank with inkjet ink
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