HP expands printer-related services
Published: 11 Mar 2003 11:34 GMT
Hewlett-Packard plans to announce on Tuesday an expansion of its services business that will focus on helping large companies manage their printing and imaging needs.
Although the company has provided some printing services to its large business customers in the past, the move marks a more concerted effort to sell such services. HP will draw staff for the project from its Imaging and Printing unit as well as its HP Services business.
The effort is part of HP's strategy to expand its printing business beyond the types of tasks currently handled by HP printers. Imaging and Printing boss Vymoesh Joshi is fond of repeating that only 4 percent of printing work is done on the types of printers HP makes, leaving 96 percent of the market still to go.
Growing the printer business is key for HP, which gets the bulk of its profits from selling printers and supplies. The company already has the bulk of the existing market, though, so it must move into new areas. According to IDC, HP accounted for 59 percent of printer sales in the fourth quarter.
An HP representative confirmed the timing and importance of the launch but did not go into specifics.
"HP will be making a services announcement within the Imaging and Printing organisation," said spokeswoman Diane Roncal. "This announcement represents a critical component of our long-term strategy. Tomorrow you'll learn more about how we're extending the relationship we've built with our enterprise customers, providing them with services and solutions to drive greater productivity and reduce costs within their imaging and printing environments."
The services effort is aimed at helping companies manage their total printing-related expenses, which HP has said can be as much as 15 percent of revenue for some large companies.
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