Big Players Made Big Moves In 2011
I’ve heard numerous nicknames get thrown around in the closing months of 2011 describing some of the trends we’ve seen emerging in managed print services, all with a pretty good degree of accuracy. The one I’ve been throwing around is ‘the year of acquisitions’ stemming from the global shopping spree that household names like Xerox, HP, Lexmark and even Konica Minolta have gone on this year.
These companies continue to look for competitive advantage through buyouts; whether it’s for improved channel support, increased small-business penetration, or just diversifying towards a more services-based model, these are some of the strongest players looking to get even stronger.
Xerox, an MPS giant, was one of the busiest in this area. With multiple acquisitions from regions across the globe, the biggest splash was made with the purchase of the European consultancy and optimization services firm NewField IT, giving Xerox control of the powerful Asset DB tool. Xerox further expanded its reach in the region’s SMB market by acquiring Scotland-based Concept Group, and in North America acquired WaterWare Internet Services. Additionally, Xerox’s Global Information Systems (GIS) acquired eight dealers in channel expansion efforts.
HP was concentrated on enhancing its channel offerings with its deal to acquire all the assets of managed service provider Printelligent. HP hopes to leverage the infrastructure, software and staff of Printelligent to support its new HP partner MPS program and capitalize on the mid-size market segments.
Meanwhile, Lexmark and Konica Minolta focused on a move towards services with some note worthy acquisitions in Pallas Athena and All Covered (respectively). Lexmark merged Pallas Athena into it’s previously acquired stand-alone business unit Perceptive Software in order to boost business process management offerings. Konica Minolta moved towards IT managed services and advanced MPS offerings by acquiring All Covered, which will also act as a wholly owned subsidiary.
All of these acquisitions are setting the stage for some big things in 2012. Some are focusing on channel efforts, and some on providing more advanced offerings into Stage 3 & 4 of MPS. But what they all have in common is showing a commitment to delivering valuable MPS offerings to the end user as the market evolves. These companies appear to be in it for the long haul, and are creating a trend where the strong are getting stronger within the market. This kind of expansion is going to eventually create some big ramifications for the market, as somebody has got to eventually get pushed out. Xerox, HP, Lexmark and Konica Minolta have all shown that they’re ready to do what it takes to rise above competition and provide in the long term. Can your company say the same?
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