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 user 2007-04-20 at 12:25:00 pm Views: 33
  • #17872

    HP Rules in Asia Printer Market
    The non-laser technology behind Hewlett-Packard’s new line of printers targets large enterprises with high-volume workloads
    (HP) has renewed its strategy to capture a bigger slice of the
    enterprise printing market with its Edgeline technology.SPeaking at the
    launch of HP’s CM8060 and CM8050 color multifunctional printers (MFPs),
    based on the company’s new Edgeline technology, Gary Cutler, vice
    president and general manager for Edgeline technologies at HP’s imaging
    and printing group, noted that new printers are targeted at enterprises
    with high-volume workloads, especially those that involve color.”This
    is a huge technology breakthrough,” Cutler said. “There are more pieces
    of intellectual property in Edgeline than 99 percent of technology
    companies’ intellectual property portfolio.”Developed as part of HP’s
    US$1.4 billion investment in next-generation printing technology,
    Edgeline printers–unlike conventional printing methods–have print
    heads that remain stationary, while the paper moves.With fewer moving
    parts, the ink-based printers that tout printing, scanning, copying and
    faxing capabilities offer the reliability of their laser counterparts,
    according to HP. They are also cheaper to build, the company added.
    With the stationary print heads, enterprises can expect speeds of up to
    71 ppm (pages per minute) in mono, and up to 50 ppm for color prints.

    new printers will be sold directly by HP and channel partners with
    service and support options through HP’s managed printing services
    contracts.Referring to the company’s internal research, Kelly Tan, HP’s
    Asia-Pacific vice president of enterprise and specialty printing, said
    the total market for HP Edgeline technology worldwide is expected to be
    more than US$30 billion by 2009.Although Tan could not reveal how much
    of that market would be contributed by Asia-Pacific customers, she said
    HP is confident businesses in the region will jump on the
    bandwagon.”Today, we also manage over 11,000 single-function and
    multifunction devices for our customers under HP managed print services
    contracts in Asia-Pacific and Japan,” she said, adding that the total
    value of those contracts grew 80 percent year-on-year in 2006.

    to Cutler, enterprises will be charged on a pay-per-use basis for the
    new Edgeline printers. He added that the usage-based pricing offers
    savings of up to 30 percent on color printing and copying.There is also
    varying pricing for professional color usage, general-office color and
    black-and-white printing.The new HP Color Accent feature also further
    reduces costs by charging black-and-white print price for pages that
    use a small amount of color, specifically, 100 characters in 10-point
    font or the area of a half-inch square, according to Paul Lim, business
    development manager of Edgeline enterprise printing at HP
    Asia-Pacific.Tan noted that HP took the pole position last year in the
    Asia-Pacific, excluding Japan, laser MFP market, with a 34 percent
    market share in unit shipment. Citing figures from research company
    IDC, she said this represented a 15 percent increase market share in
    2005, representing a 274 percent year-on-year growth in unit shipment.

    company Gartner said recently in a research note that HP’s usage-based
    pricing model is “innovative”, noting that the hardware and
    cost-per-page price positioning of new products will have a significant
    impact on the market.”Other vendors will be forced to match or better
    HP’s offering, thus engendering a very price-aggressive market where
    the buyer will be king,” Gartner added, noting that Edgeline customers
    can also use the pricing model to experiment with color usage and
    monitor benefits associated with using business color in office
    documents.However, Gartner advised enterprises to treat the new
    Edgeline products as they would any first-generation product. “Edgeline
    offers a viable alternative to established laser technologies but it
    should be evaluated on a small scale, alongside existing solutions.”Be
    cautious about making Edgeline the linchpin of your office printer or
    MFP fleet, even if you see Edgeline as justification for an all-HP MFP
    fleet or as proof that HP will soon dominate office MFPs as it already
    does [with] office printers,” the analyst said.