It's Over and HP Wins

4/21/2017

If copier OEMs are Missionary, HP is Reverse Cowgirl. It's Over and HP Wins

Anyone who knows me, remembers me lambasting HP for past gaffs and missteps: Hawk and Ikon, The "Long March" that was Edgeline, firing Hurd, Leo, and the all too infamous, TouchPad.

And who can forget "The Great Toner Purge of 2013"

During my talk at the Photizo conference back in 2012, I was asked if I thought HP would survive.  My quick answer was "No, not as we know her today."   That was then, this is now and HP ain't what she used to be.

Which brings me to my point: HP is going to win the war for the remaining clicks.  HP will beat Canon, Ricoh, Xerox, and those who attempt to overtake her as the predominant provider of MpS and devices.

Why?  Three reasons:

MSFT to Bulid Surface: But What About HP? Karma Isn't Just an Electric Car

The MSFT Surface is making headlines all over as yet another software manufacturer steps into the hardware business, just...like...Apple.

Everybody is doing it - Google, MSFT...okay, not everybody.

As the usual technology pundits air out their sponsored 'opinions', am I the only one who is hearing desperate cries over at HP?

To Boldly Go

And so it has finally come to this - There is nothing new for me to write.  There is nothing I can say, that I haven't said before; Manage Print Services has peaked and it's time to "jump the curve".

Sure, there are plenty of adventures remaining, lots of cold calls, assessments, proposals, and engagements remain to be had.

Have it.

I will certainly NOT stop talking or writing about technology in our little niche - see you at some shows.

But there is more...

Holy CRAP!!!! Meg is In, Leo is Lost...and HP/Mother Blue? Slow-Motion, Disintegration

"...the Sky Shall Shatter the Heavens into Stars..."

2011

HP has let Leo go - not surprising, and still shocking.

Meg is in, not surprising and still shocking.

The leaks, the rumors, the change in plans, the mystery, intrigue and tragedy that is HP.

Remember what started it ALL - Hurd's girl. Which is only saying Hurd started this.

But Meg? No really?

I do not dislike Meg, its just that I was out here when she ran for governor.

Stilted. Stiff. Planned, formula, handled.

No innovation. She appeared stuck in the old ways. She was overly advised, not genuine.

It seems to me, the HP board resurrected captain Ahab from the depths and put her on the bridge of the USS Ronald Reagan.

DOTC is calling it right now - NO GOOD SHALL COME OF THIS.


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HP's Hurd - Wall Street Journal Timelines the Fall...

In an article by Rubert A. Guth, Ben Worthen and Justin Scheck, at WSJ.COM, new details of the Fall Of Hurd are exposed.(yes, the above is a picture of Jodie, Playboy, 1980)

Even though we are at the tailend of the escapade, the WSJ story is a great summary revolving around the letter sent to Hurd on behalf of Ms. Fisher, from her lawyer, the one and only, Gloria Allred.

Some felt the HP bent Mr. Hurd over, but the seriousness of the allegations apparently made the board stand up and notice.

Ms. Fisher claimed Mr. Hurd revealed to her, HP's intention to purchase EDS prior to publicly announcing - an obvious premature release.

Additionally, Mr. Hurd claims he and Ms. Fisher watched a Minnesota/Green Bay football game, first in the hotel bar and later together in his hotel room. Scurrying off at the "two minute warning."

Well, judging from this shot, she likes Texas, and everybody in Texas is a football fan - correct?

Wow.

HP sues ex-CEO Hurd over new job at rival Oracle

Hewlett-Packard (NYSE:HPQ) Tuesday filed a lawsuit against former CEO Mark Hurd over potential damages he could cause in his new position as co-president of Oracle (NSDQ:ORCL).

HP alleges in the lawsuit that Hurd, in his new role at Oracle, would not be able to avoid using HP trade secrets to compete with HP, and that "HP has been injured and faces irreparable injury."

More Here.

Mark Hurd Hired by H-P Rival Oracle

Oracle Corp. named Mark Hurd co-president and appointed him to its board of directors, heightening the rivalry between the software company and Hewlett-Packard Co., the technology giant Mr. Hurd ran as chief executive until departing amid a scandal last month.

New York Times Article Answers Lots of Hurd Questions

I was going to follow this one pretty heavily.

No doubt, in our industry, this little shake up is rivaled only by the RiKon merger in news worthiness - if not gossip value.

But soon after the separation, more and more information hit the 'net, that gave me pause.

And when phrases like, "nude pics" and "erotic film star" started to show up, well, I just decided to let the story ride, without much comment - you can not make this stuff up!

Printers not sexxy? Bravo Sierra!

From the article by Ashlee Vance, with the New York Times,

"...The company has uncovered communications between Mr. Hurd and Jodie Fisher, the occasional H.P. contractor who accused him of sexual harassment, that seemed cordial, even after a last meeting in a hotel room in Boise, Idaho, a person with knowledge of Mr. Hurd’s e-mails said...

Hurd it on the Streets: Mark to Oracle?

Seems Mark's friends are coming to his defense.

Larry Ellison, CEO at Oracle, fired off a communique that may reflect the feelings of most observers - HP's board is full of a bunch of idiots.

They reportedly relied on counsel from a PUBLIC RELATIONS FIRM when deciding to fire Mr. Hurd.

I've said it before, HP is great at making really cool things, but marketing, not so much.

A quote from Ellison,

"...The H-P Board just made the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago. That decision nearly destroyed Apple and would have if Steve hadn’t come back and saved them. H-P had a long list of failed CEOs until they hired Mark who has spent the last five years doing a brilliant job reviving H-P to its former greatness..."

Agreed.

The Email Hurd 'round the Org: "...We recognize that this change in leadership is unexpected news..."

The following is the complete text of the e-mail from Lesjak...:

“TO/ All HP Employees

"SUBJECT/ Organizational Announcement

"This is to advise you that Mark Hurd, Chairman and CEO of HP, has resigned from the company effective immediately. Mark’s resignation was submitted at the request of the company’s Board of Directors as a result of inappropriate behavior in which he engaged that violated HP’s Standards of Business Conduct and undermined his ability to continue to lead the company.

“At the request of the Board I have agreed to serve as interim CEO until a new, permanent CEO is hired. During this time I also will continue to perform my duties as CFO. The Board has formed a committee to undertake a search for a new CEO, and candidates from inside the company as well as outside the company will be considered. I have informed the Board, however, that I do not wish to be considered for the role of permanent CEO, and I have removed myself from being a candidate for that position.

“While this news is unexpected, HP remains in an exceptionally strong position both financially and in the marketplace. It is essential, however, that we remain focused and continue to achieve – if not exceed – our operational and financial objectives. “Because there is likely to be considerable media coverage of this announcement during the next few days, I wanted to be the first to share the facts with you.

Predictably, the Hurd Situation is Starting to Get Weird(er)

The lady in questions says there was never any sex. Yes, this is a picture of her, Jodie Fisher.

She is also sad. Sad that Mark lost his job.

Hurd leaves with 40 million - rumors are running all over the 'net - this could be either the biggest fall for that smallest oversight($20,000.) or there is much, much more to all this.

Hurd spent money on dinners/"interviews", one site actually uses the words "canoodle" and woo.

Lobster was served.

It's not Tiger Woods, and it ain't Goldman Sachs, but it is not good at all.

Never, again, should anyone ever question why I use gorgeous women on my blog.

Mark Hurd Resigns Following Sexual Harassment Investigation: HOLY CRAP!!!

Hewlett Packard (NYSE:HPQ) on Friday announced the resignation of Chairman, CEO and President Mark Hurd, effective immediately. HP CFO Cathie Lesjak has been appointed interim CEO.

According to a statement from HP, Hurd made his decision following the conclusion of a sexual harassment investigation, in which Hurd was found in violation of HP's Standards of Business Conduct, though not its sexual harassment policy. The claim of sexual harassment was brought by a former contractor to HP, whose name was not provided.

"As the investigation progressed, I realized there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my career," Hurd said in a statement. "After a number of discussions with members of the board, I will move aside and the board will search for new leadership"

The Death of Printers: I've Been Saying It For Over a Year - HP Will Not Be Selling Printers

In an article by Jon Fortt, at Brainstorm Tech, HP's Bruce Dahlgren illustrates a future without printers; without printer sales people.

Indeed, Jon's article, title, "The death of a (printer) salesman" is ominous.

If not a bit cosmic.

I had a conversation the other day with an MPS Visionary who is starting to think that not only is MPS changing the copier channel, it is changing the Selling Model - Wow.

As sited here on DOTC, the shift has been underway from copier sales to more Business Acumen ever since MPS got "hot".

Here is the article, enjoy.

The death of a (printer) salesman
Posted by Jon Fortt, senior writer
March 30, 2010 7:00 AM

"In the near future, most big businesses won't actually buy printers. The shocker: HP is looking forward to that.


Enterprise printers aren't going away. But soon, most big companies will pay for the output, not the box. Photo: HP.

Bruce Dahlgren's job at Hewlett-Packard is to sell printers to big customers. Well, sort of. During a recent huddle in a conference room at Hewlett-Packard headquarters in Palo Alto, he was talking about what will happen when big customers stop actually buying printers.

Sound unthinkable? It’s not. Rather than purchase equipment that gets old and breaks down, these days a growing number of companies would rather let someone else own and manage the office copiers and printers — make sure they’re up-to-date, stocked with supplies and arranged in the most efficient way — and instead just pay for the work the equipment does. The model is called managed print services, and it’s all the rage.

In fact, it’s a big part of the reason Dahlgren is at HP (HPQ) in the first place.

Soon after HP CEO Mark Hurd arrived at the company five years ago, he recognized that the vaunted imaging and printing group wasn’t doing a great job with large businesses. Part of the problem: IPG executives were used to marketing to consumers, and lacked deep experience in enterprise sales.

Vyomesh Joshi, the printing group’s executive vice president, once told me that it was humbling, but he realized he needed Hurd's help to turn things around.

In a controversial move, Hurd brought in Dahlgren, a former colleague at NCR (NCR), to lead the enterprise printing business and spearhead managed print services. (Because of a legal dustup with previous employer Lexmark (LXK) regarding a non-compete agreement, he had to take some time overseeing Europe before settling into the role.) Since then, Dahlgren has been scrapping with the likes of Xerox (XRX) for share in the market.

So far the services business has grown to the point where HP manages 19 billion pages per year. The total value of all managed print services contracts stands at about $5.5 billion. Revenues have recently gotten large enough that HP executives review it separately from the other printing operations.

A race to print money

The spoils of the managed print services war should be considerable. Photizo Group, a research firm, estimates that by 2013 it will more than double into a $60 billion global market, and more than half of all enterprise printing devices will be under a services contract. Dahlgren says that today, only about a third of HP’s enterprise customers have begun using managed print services at all, and another third are evaluating it. “So I don’t shy away from a $1 million contract,” Dahlgren says. “Because I know that once we get in there, this thing really expands.”

In this environment, the company that locks up the most market share could eventually wield decisive influence over which enterprise printer and copier brands thrive. If HP wins, it gets to eat a big piece of Xerox’s business. If Xerox wins, it gets to do the same to HP.

So it makes sense for the printing giants to jockey for market share grab now, especially since businesses don’t want to buy equipment anyway and companies like HP can promise coveted cost savings from switching to the services model. But what happens when that stage is over, and investors still want profit growth in the imaging and printing segment?

Dahlgren has an idea of how it might work. He offers a customer as an example: HP had begun managing most printers and copiers for a hospital when someone noticed that the station for printing the hospital’s ID wristbands was located right near the admissions station. That would make it possible to print each patient’s picture, in color, right on the wristband.

Not only would it make it easier for hospital staff to check them, it would add a valuable layer of security. And in the print services contract, HP can charge more for the new wristband-printing service — similar to the way the cable company charges more for premium channels. Says Dahlgren: “Wouldn’t it be cool — we’re not there yet — but wouldn’t it be cool if when a doctor printed out a patient’s information, there was actually a picture there?”

It would be cool. And apparently profitable for HP, too."
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The Death Of Edgeline, Again...This Time for Real. No Really. I Mean It this Time

March 2010

OK - Sorta. 

As reported here back in November of 2009(The Word From Hurd: IPG Growth Includes Wal and K*Mart), Edgeline may see the light of day, under a flashing blue light. 

I can't say how official it is, but a reader informed me that the vaunted Edgeline, the Destroyer of Copiers, the New Way, will be at End of Life, on April 1, 2010. 

Parts, supplies, and support will be provided for five years. So ends another chapter in an odyssey that is HP. And like Obama voters today, six months from now, you won't be able to find anyone willing to admit they ever heard of Condor. In a recent WSJ article, it was stated that HP, since last year, has been quietly placing photo kiosks in WalMarts across the country. 

To the chagrin of Kodak. (talk about the Death of Something) 

The word on the street is that HP will be providing these in all 3600 Wal*Mart stores across America. 3,600? No wonder nobody at HP returns my calls. (just kidding) 

What does this have to do with Edgeline? The top image is an HP ML1000D mini lab - the backbone of the Walmart photo kiosks. This image is a CM8060 with a finisher and a large capacity paper tray, much like the 40 or 50 I have installed around SoCali. 

What do you see? Let me tell you what I see. I see a huge commission check - this "takedown" will generate growth of over 300 percent for HP's global retail publishing line. 

I see a machine that is based on Edgeline technology, housed in an identical chassis, utilizing the identical LCT. I see a strong printing engine that will be able to run on "retail" hours. I see a company that consciously got out of a dying, copier industry. Alias, poor Edgeline, I knew you well...

"These kiosks stay installed for nine or 10 years," H-P Chief Executive Mark Hurd told investors at a conference in San Francisco on Tuesday morning. H-P gets "100% supplies connect," he said, referring to the sales of the additional printing products.

Ah yes, remember the good ole days, here? 

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The Death of Edgeline

Feb, 2010

I was scrolling through some year-old posts and stumbled upon this one, from Art over at print4pay Hotel's, "MFP Solutions Blog". 

A year later, almost to the day. Has anyone heard anything, at all, about Edgeline? 

Huh. 

See my, historical journey through the odyssey that is Edeline, here. 

###

Wednesday, February 18, 2009,  HP Edgeline "What Went Wrong" Art Post 

 I had an email the other day from an analyst from a major printer vendor. In the email, I was asked "what went wrong with this program?" I thought, geez you're asking me?? 

Clouds of Misfortune Rolling in On The Winds of Change: Copier Industry Next to Fall?

12/2009 -

"It's the End of the World as We Know It."

"The Future Ain't What It Use to Be."

"Fail to study history, doomed to repeat it."

"See, I told you so."

"I shaved my legs for this?"

The other day, I read a post over at Callinan's blog, here. It's good, it's about changes in our industry.

And Ken Stewart has a pretty good grasp on the subject as well, go here, and see his newly re-minted theme - it's to die for!

I've run into a flurry of statements, lately, like these,

"...copier dealers need to change or die..."

"...MPS is not getting the return we expected..."

"...the best way to sell MPS is to start with changing people..."

"...how can we adopt MPS when one of the MPS goals is to reduce MIF..."

"...this will kill the industry..."

The Printer and Copier Sales Decline in UK is "Over": Hurd's Word Tempered

Just over 1 million multifunction printers and standalone printers and copiers shipped during the 3rd quarter, in the UK.

This is down 3% from a year ago, but is not as bad as the 22% and 30% tumbles in the German and French markets, Gartner said.

Tosh Prabhakar, senior analyst at Gartner, was downbeat about short-term growth prospects.

"I cannot see things dramatically improving in the next six to nine months. The hardware is very mature and there are no compelling technologies that will drive the market forward," he said.

Remember Hurd's Words during HP's fourth-quarter financials meeting; he forecast a significant rebound in sales as companies upgraded ageing technology.

Pent up demand may lead to a call to that 800 number,(have you tried flicking it?).

Indeed, if Hurd's word is true, the inventory challenges of the LAST FOUR MONTHS, may be behind us by February, releasing the flood gates and fulfilling months of backed up orders.

Thus, resulting in an apparent, yet manipulated, rebound.

Not that there's anything wrong with that.

Source article here.


By the way, if you get the reference to "flicking" it, drop me a line.

The Word From Hurd: IPG Growth Includes Wal and K*Mart

One word kid, one word..."Kiosk...Kiosk...Kiosk..."

Ok, that's three words.

I have seen the future of Edgeline and it is at K*Mart.

HP's notorious inventory challenges are reportedly behind them, and 2010 looks to be a year of "recovery...and attack..."

IPG is leaner, meaner and looks "...to drive further share in installed base gains with double digit printer unit growth in Q1..."

Hurd's remark about IPG expansion around "100's of photo kiosks..." piqued my interest.

Somebody, somewhere, somehow, is manufacturing EDGELINE engines. The Final Destination just isn't a department in your corporate accounts, it's underneath a blinking, blue light, in isle 13.

Hurd-

"...IPG is poised for recovery and is getting on the attack. As we enter fiscal year 2010, the headwinds in channel inventory are behind us. We expect supplies growth to improve with economic trends, and employment levels and project a flattish result in Q1.

Demand is also improving for our printers.

We gained share sequentially and we expect to drive further share in installed base gains with double digit printer unit growth in Q1. Due to improvements in our cost structure we can do this while remaining within the 15 to 17% operating margin that we laid out at our analyst meeting in September.

IPG is also gaining significant traction with its growth initiatives. We deployed hundreds of photo kiosks this quarter at Wal-Mart and look forward to further expansion in 2010.

Recent studies released by market analysts highlight HPs leadership in managed print services with more signings than any of our competitors. We're encouraged by our Managed Print Services funnel, which is at record levels, these deals are generally for multiple years and have a high attach rate of supplies.

In commercial print the analog to digital page shift is occurring and we are leveraging our technology to accelerate the transition. Partnerships with industry leaders like Pitney Bowes, RR Donnelly, and web press purchases from communication leaders, Omnicom demonstrate the power of our portfolio and capabilities. We expect you will hear more partnerships from us shortly.With our significant market leadership and broad patent portfolio, we are well positioned to capture this significant page opportunity..."

For a good re-cap, check out Jim's blog, here.

HP IPG folding into PSG? Someday, HP Won't Sell Printers

10/6/2009

Back in April, I wrote a bit about an issue that was, at the time, unthinkable.

In my article, Is Hurd funding IPG's Demise with IPG's Revenue?, we briefly explore the possibility that Hurd's restructuring of HP into a full, IT services company, is being funding from IPG(printer) profits.

The irony being that one day, HP will not sell printers.

Ludicrous, inconceivable?

Add it up:

Expected HP growth somewhere around 3-5%, with MFP growth at only 2%

Five years ago, HP's PC unit was losing out to Dell, and barely making a profit, today HP is the leading PC provider in the world

IPG growth has been over shadowed by PSG and other growing sectors of HP's galaxy

MPS programs supported by distribution partners, not "home grown" except for Enterprise accounts

Edgeline

EDS purchase

Mark Hurd

Canon Alliance

And who is Todd Bradley?

Indeed, if this is true, if the LaserJet is destined to follow OS/2, the next move we may see is an "enveloping" of IPG into PSG.

CrazyTalk? Oh really?

"...Earlier this week, The Wall Street Journal reported that Hurd is considering a plan to fold the printing business into Bradley's division. HP executives have declined to confirm or comment on the report, which the Journal attributed to unnamed sources..."- Mercury Hews

Here is the blip.

More from the Mercury News article:

"...As businesses shift to electronic records, some analysts believe they will print less on paper. Many consumers, meanwhile, are increasingly viewing Web-based material on their laptops, smart-phones and portable devices, without feeling the need to print.."

This is big - But what about Joshi?

The Mercury News article, here. A very good read.

In an article by Bob Evens, Information Week, he hearkens the same tone - HP needs to stake it's flag and the colors won't simply be printers/output:

"...Hewlett-Packard's got all the pieces to become just about whatever kind of company CEO Hurd wants it to be, and while that vision has yet to be fully expressed, the imminent merging of its PC business with its printer business is a huge step in the right direction. Because while both of those product lines are massive and are among the top reasons why HP's annual revenue of about $120 billion tops that of any other IT company, PCs and printers are simply not going to serve as the strategic platforms that define HP's future and its enduring value to enterprise customers..."

IBM, at one time, sold laptops, PC's and printers...

Does HP Really Need a Channel? Really?

2009 -

The answer is Yes, HP needs a channel. But read on...

What's more, HP just may be "getting" this MPS thing. (tongue in cheek)

As we have witnessed over the past few months, Hurd's herd, has openly marketed their old, tried, and true MPS programs(SPS?).

The HP "guarantee" is the latest salvo.

To be sure, HP has been pushing the MPS program at the Enterprise level for years and any HP IPG VAR has had, in the past, little reason to fear the "mother ship" swooping in on their smaller, B2B business.

Everything changes, that's a fact...

With few new equipment releases, reduction in R&D, and decentralize MPS programs for the channel - through partnerships with Great America, Synnex, Ingram, etc.- comparatively, the HP MPS plan for the channel seems a bit less focused.

There's nothing like the 23 module behemoth from Ricoh, or the easy to use Xerox PagePack 3.0 or entry level, scalable programs from Toshiba, Oki and Samsung.

What gives? Gartner's analysis sheds some indirect light on the subject:

"HP lost 3.4 percentage points market share to total 40 percent market share in the first half of 2009 as it maintained a tighter control over its channel inventory levels amidst weakening demand."

Hardware sales are soft so where does one look to increase revenue in an equipment slump?

Managed Print Services.

HP's existing client base is huge and contains large enterprises that utilize 1,000's of HP printers - MIF.

And what's the number one place to look to for that low hanging fruit? Your existing client base.

Unlike a good deal of VARs and dealers in the channel, HP is not afraid to let their highly trained MPS specialists waltz into an ITG account and start pitching MPS.

That's the easy stuff.

As for SMB MPS channel; if equipment sales are down, why bother working through an unproven, inexperienced channel partner when the plan is to REDUCE the number of units sold?
So,

The best way for HP to dig into the SMB Managed Print Services treasure chest is direct, not through a channel.

Woah...wait, what, huh?


That's right.

The hot, new revenue stream is MPS, and does not require selling equipment - indeed, the exact opposite should happen. There is no reason to work with a VAR selling pure MPS services, services which reduce the number of HP's or xerox, Lexmark, or anyone's boxes.

HP can provide MPS directly on a national, global basis - why not locally? Why not right in your backyard?

So the recharger folks are freakin scared? The rest of us are simply in bliss.

Fear not, dear HP VAR and IPG SVIP OPS reseller - the news is good and it comes from across the pond.

Alan Hatfield, Channel Development Manager at HP, out of Gloucester, United Kingdom, was looking for a UK growth target of 100% between the months of May and September.

To increase ANY type of business by 100%, in only 6 months, is a lofty and seemingly unrealistic goal, but Hatfield expects to see a 90% increase.

And within this growth, Hatfield believes MPS sales are split 50:50 between direct and the channel.

“HP is very committed to having a good platform for our partners because MPS is the future,” he says. “Most of the conversations I have with channel partners are around managed print services.”

Our friends over at Photizo Group estimate the MPS market be more than $50bn by 2013, with more than 50% of all devices coming under MPS contracts.

If the ratio's from the UK/Europe hold true, that's a paltry $25 billion for us in the channel...so who cares if HP needs or doesn't need a channel - figure it out.

One source article here.