"Corporates outsourcing their printing tasks will mark a significant trend in the near future"

As a marketing manager, Larry Tracy doesn?t engage in the routine feature
versus price talk while introducing HP?s whole new range of multi-function
devices. Instead he elaborates on how HP?s imaging and printing solutions can
reduce a customer?s management and operation cost by as much as 30%. Larry
feels that with a huge amount of IT infrastructure being put in India, MFDs will
acquire a prominent position here.

How do you see the adoption for MFDs evolving across the world?

Globally, the demand for multi-functional devices has matured to an extent
that home and SOHO are driving the growth in the entry-level space. To say that
they are taking the place which deskjet printers enjoyed couple of years ago
would not be wrong.

Larry Tracy Marketing Manager, Enterprise Imaging and Printing (IPG), HP

At an enterprise level too, there?s a shift in approach to printing and
imaging. Customers now are no longer interested in a printing hardware/software.
They want to have a printing solution which can have a direct impact on their
operational and management costs.

How is the printing landscape like in India?

In India, the demand for MFDs is in its initial phase and we see a huge
potential, which is at par with China, here. According to IDC, in the calendar
year 2003, nearly 20,300 units of MFDs got sold in the country generating a
revenue in excess of Rs 225 crore.

To quote IDC again, the CAGR for this product segment over
the next five years is pegged at 30%. So that kind of sums up the growth
potential that we were just talking about.

But beyond the figures, what we also see is that a huge
amount of IT infrastructure is being put into place in this country. The amount
of outsourcing that?s happening to India is truly remarkable.

Hence, we see a strong need for solutions that can address
the printing requirements which will be a key part of the newly-established IT
infrastructures.

What according to you would be the significant driver that
would propel the adoption for MFDs here in India?

For enterprises, savings on printing costs is going to be the single-most
important driver behind adoption of the MFDs, including the new range that HP
has launched recently. In fact with our new range of MFDs, customers can save
nearly 30% of the cost that they incur on their printing and imaging activities.

Apart from cost, its also the ease of manageability that will
drive many corporates to seriously look at MFDs. Having said

that, I must add that we are not implying that just by bringing an MFD the
entire printing problems of an organization can be addressed.

What we are saying is that an MFD has to integrate with some
other printing and imaging devices as well to provide a truly effective
solution. At HP we are offering not just hardware, software or services alone,
instead a comprehensive solution that will optimally integrate with the existing
printing infrastructure.

How can partners use MFDs as an avenue to scale up the value-chain?

Those partners who are currently engaged in doing run-rate business can
upscale by looking at offering consumables for MFDs as an exciting avenue of
growth.

At the same time, those who have the skill-sets and mind-set
to get into the service game, can find a wide variety of support and solution
offering to deal in. They can also offer their own services or act like an agent
for offering HP?s bouquet of

services.

Further for guys who are already dealing with servers, PCs
and other networking activity, this provides as a great opportunity to further
widen their portfolio.

Are you also looking at launching some certification
around MFDs?

Yes sure, that?s indeed a very strong possibility that we are looking at.
We also intend authorizing partners so that end-users feel completely confident
while buying products or services from them.

What are the key industry verticals that you think will be
the fastest adopters for workgroup MFDs?

Globally, its insurance and finance that are the most aggressive buyers for
these devices. The manufacturing segment too is a very strong driver for demand
in this? space. I believe, in India too, the scene would be somewhat same,
with telcos and government being some other major adopters.

What opinions do you have on companies completely
outsourcing their printing requirements?

I think that is going to become a very significant trend in the days to
come. Companies today don?t want to be involved in the processes which is not
core to their businesses. And for many of these printing is just one of the
enablers of their

business.

Already we see cases where a large enterprise has completely hired a third party
to take care of his printing needs. This way he also saves his cost of ownership
and at the same time, re-directs his manpower towards more core tasks.

So would HP be offering such outsourcing options as well
to its customers?

Yes. In fact, we have already introduced a pay-per-use kind of model for our
customers wherein they don?t own the printing infrastructure. They don?t
have to manage it either, as HP or one of its channel partners would do it for
him.

Most importantly, the client pays on the number of prints he
take. Of course there are various payment models, including a leasing option as
well. The idea is that we are ready to meet all the printing and imaging
requirements of our customers and provide him all the flexibility as well.

GOLDIE