Xerox Gears up for ‘Largest New Product Launch’ – 29 New ConnectKey MFPs Coming, New Dealer Recruitment
During a conference for investors, Xerox today reported on its strategy as a separate company, as it officially splits off from business-process outsourcing company Conduent on December 31, 2016. In a nutshell, Xerox says its will focus on strengthening its Connected Office copier/MFP portfolio; increasing its participation in the office SMB and mid-market; growing in the digital graphics-communications and production-printing markets; and expanding its leadership in the document-outsourcing market.
29 ConnectKey MFPs
Xerox strategies in the office-printer market will include 29 new ConnectKey MFPs for 2017, which is says will be “the largest new product launch in its history.”
The launch is designed to enhance Xerox’s office-imaging portfolio with secure, smart copier/MFPs with high performance apps, mobile-printing, and cloud-connectivity. It will also support channel expansion, particularly in the $20 billion multi-brand reseller space, by providing partners a broader set of products, solutions, and vertically integrated tools, technology, and service-delivery processes.
The new ConnectKey MFPs will also be ready for integration with Xerox managed print services (MPS), will feature a new tablet-like touchscreen interface, and will feature a new “improved cost structure.”
The new ConnectKey MFPs will range from “the simplest A4 device to the most robust A3 MFP.” Xerox puts the A3 copier/MFP market at $23 billion (according to IDC and Xerox estimates), with a compound annual growth rate (CAGR) of -5 percent from 2016 to 2019, states that it has a 22 percent share in this market, and that it’s ranked #1 in the market. In the A4 copier/MFP market, it states that it’s a $12 billion “growing market” (according to IDC and Xerox estimates), with a 3-percent CAGR for 2016 to 2019. It says it has a 6-percent share in the A4 market, and is ranked #9 among vendors.
It says its competitive differentiators in the market include:
- Extensive portfolio and MPS-ready.
- “Benchmark cost-competitiveness.”
- Newly enabled vertical solutions and applications.
- Channel-ready platform and strategy for expanding into the SMB market.
The firm notes that major changes are occurring in today’s office workplace, with office work moving from a physical location to remote and virtual workplaces, requiring new office-imaging solutions that Xerox will offer, including:
- Mobile access and remote collaboration.
- Smart, automated workflows.
- Secure interaction to and from the cloud (such a cloud-based document storage and sharing Web sites, including Google Drive, etc.).
- User experience consistent with consumer devices.
- Customizable application interface and user profiles.
Recruting Multi-Brand Dealers to Expand Buyer Base
The firm notes that there are about 2,500 independent office-equipment dealers in the United States, that there are about 300 dealers with annual revenue of between $5 million and $10 million, and about 200 dealers with annual revenue of less than $10 million and that it plans on targeting these dealers for recruitment.
It also says there is a “Tremendous opportunity to more aggressively target the $20 billion worldwide multi-brand dealer market.” It plans to “recruit and activate to grow our footprint in multi-brand dealer channel among the 750 large dealers, as well as acquire and integrate multi-brand channels via Xerox Global Imaging Systems and its European channels.Xerox currently sells its printers and MFPs directly to large corporations or through its exclusive resellers.