Industry viewpoint: Writing on the wall for copier vendors

Convergence is a hot topic at present, with printer and copier vendors engaged in fierce competition for each other's markets. But the traditional focus on hardware means that most firms are ill-equipped to take advantage of convergence and many resellers don't understand the implications.

The problem is that, both the printer and photocopier sectors are close to saturation point and need fresh markets for their technologies - each other's markets. The rewards are considerable - the growth of the internet and decentralised printing means extra pages with greater print density.

But for the user the risk is ever-increasing costs as print volumes grow.

It's usually the IT department which specifies printers, with the facilities manager responsible for copier purchasing. The first is focused on capital cost and network compatibility; the second on achieving a favourable cost-per-click.

How can both these individuals be persuaded to replace their hardware with a single, networked device, especially when they are both trying to protect their budgets and sectors from encroachment by the other?

Convergence is a bit like two opposing medieval armies going into battle for the first time, with no one, including the respective generals, really knowing who the victor will be.

The key to success is a shift from hardware requirements to defining hard copy strategy. Companies must think less about replacing hardware and instead concentrate on applying technology to smooth and enhance their document flow. And that requires co-operation.

These resellers that recognise this and use a value-added approach stand to do well as the market evolves. Without them, companies will continue to buy digital copiers and use them as standalone copying devices, or replace all their printers with digital copiers without considering if a scanning function is really required. It's easy to imagine an office where only a very small percentage of documents arrive in hard copy form, as email finally kills off fax and post.

A mechanism exists for both digital copiers and printers on the corporate network. Digital copiers in each department provide regular copy resource, plus centralised printing for occasional long runs.

Workgroups can also be supported by network printers, with networked scanners placed strategically to allow any documents received as hard copies to be stored and manipulated electronically. But each organisation's precise needs will vary and the profit rests in the ability to address the needs of a tailored approach.

The price of laser printers has fallen rapidly in the 90s. Nobody stands to make money from hardware sales and resellers rarely see any of the revenue.

The copier purchasing model allows the reseller to gain a long-term partnership with a customer. Printer resellers have the opportunity of convergence to adopt the copier sales model, and dealers will be forced to operate in a world where exclusive niche sectors and direct vendor relationships are the exception and not the rule.

Copier resellers that fail to connect are already dropping out of the race; now it's up to the printer reseller to seize the opportunity.

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