Xerox rebounds slower than expected; shuts down wide format and enters another era of layoffs…

2011 may be known as the “Year of the Rabbit” for some but not the great Xerox. Goliath is falling and I’m not sure who can catch his fall. The first 6 months of 2011 may be part of the rebuilding of American economics but for Xerox it has been nothing but a nightmare.

6 Month Stock History for Xerox (courtesy of Yahoo Finance)

Going into a new age Xerox’s CEO Ursula Burns moves full steam ahead having to announce some very difficult decisions at the end of the 4th quarter of 2010 that they would be moving ahead with a plan to lay off 2500 employees. Then early on in 2011 Xerox announced or rather whispered quietly that they were going to discontinue their wide format business in North America.

In an article named, “How Will Xerox’s Decision to Discontinue “Wide-Format” Impact Reprographers, Xerox Wide-Format Dealers, and Other Wide-Format Manufacturers? “ The writer gives an interesting view about the effects industry wide on this decision. None the less it was a difficult decision to arrive at and an even more difficult one to announce to their employees that have heard nothing but bad news for a long time. In an article written by Anthony Bianco and Pamela L. Moore back in 2001 for Business Week named, “Xerox; the downfall” the writers talk about the many rough decisions made over the years by Xerox executives and the timeline associated with those decisions.

So what’s next? How will Xerox reorganize knowing that they will be 2500 people light in the coming months? Who will they lean on? Where will the work load go? Well for months I have been hearing rumors on a big announcement coming from Global – Xerox’s rogue warrior.

I have talked about this subject on many occasions only to get my hand slapped by my presumptions. Although many of my predictions did in fact come true, some were slightly off the mark. But as anyone vested in my industry knows I have opinions based on what I see and hear on a local and national level and we are all subject to rumors.

Well the rumor on the street is that as Xerox makes good on its promise to lay off workers it is also going to restructure how they distribute the workload. What does this mean do you ask? Well I think in the short term Xerox customers are going to get a visit from their first cousins at Global saying, “Hi my name is Bob from Global Imaging Systems, a Xerox company I am just stopping by to introduce myself as your new rep.”

My assumption is that very shortly Xerox will be unloading assets sold by Xerox sales reps themselves only to find out that they are no longer with a job and that their assets have been given to a Global rep to manage as Xerox tries to cut the fat from their organization. This “live long enough to see a better day” strategy will have some interesting implications for their customers that signed up for “an elite manufacturer direct experience,” not a close imitation.

The other assumption is that many of these assets will be production print devices and not just workgroup systems. This also creates some interesting situations as not all Global offices have dedicated or specialty trained production teams. This puts a lot pressure on a workforce that is less disciplined as Xerox’s own. Global has been allowed to run a bit unrefined and now it will be dealing with an even greater share of Xerox’s business; business that Xerox itself sold.

So how will customers react to this news? Well it will depend on how they hear it and really it is a people business so it largely will depend on the rep that shows up to the door and the resources that he or she has at their disposal which will depend on the local branches culture and strength. Many of Global’s offices have or were very strong dealerships prior to the acquisition.

Does this leave opportunity for everyone else? Why of course with another great competitor in transition and weak it means that thousands of customers, potentially a 100 million dollars of assets will be up for grabs to those who are willing to bring to light the new risks associated with being a Xerox customer.

What used to be said, “No one ever got fired for buying a Xerox,” could now change to “No one wants to be the one to pull the trigger on Xerox as it could get them fired.” Only time will tell if any of this comes to fruition but one thing is certain. It is a dangerous time to choose the wrong vendor for your infrastructure as it is getting harder to choose a company that is solid.

With the holocaust in Japan leaving many manufacturers crippled both in their own capacity but also hindered in that their supply chain partners had suffered as well. This has left many deals wide open as “he who has the goods gets the deal.” As we have seen here in Houston Texas some decisions have been made to buy from people that “have inventory” without regard to who had the best price or gear.

This leaves one that is watching thinking that they have been watching day time soaps like “Days of our lives,” when in fact they were watching “As the copier turns.” It will be interesting to listen carefully to both Xerox and Global and see what they do in the near-term. It appears that big changes are coming and it is not good news for customers that invested in “Xerox dominance.”

Happy Selling…

Pirate Mike

Offset Press Manufacturers; the lines are being drawn...

As you know the offset world has been growing at a pace just slightly under inflation which shows that this technology although needed is dying. As we watch the big iron manufacturers like Heidelberg, Kamori, , KBA, MAN Rolland, Mitsubishi, Ryobi, Sakuri, Akiyama, Presstek (AB Dick) and others what we see is large layoffs and very cautious maneuvering to stay alive. (keep these names close to mind these represent all the most common presses you will find)

Shinohara just filed for bankruptcy (January 2011), and many others are not far behind. Hamada pulled out of North America last year and many others are very shy about spending money.

Just like the copier industry everyone is closing aligning themselves to survive and digital press manufacturers are "WHERE ITS AT" As you may remember OCE and MAN ROLAND just annouced their partnership leading the way for other "big Iron" makers down the path of survival.

http://global.oce.com/news/press-releases/2010/oce-and-manroland-announce-global-strategic-alliance.aspx

And what you may not know is that the most prestigious press manufacturer has been partnering with a well know digital press manufacturer for sometime now.

http://www.heidelberg.com/au/www/en/content/articles/recent_news/newsletter/gen_2010/gen_1004/s8_km

You should also know that Heidelberg announced that it will later this year 2011 announce who their "full time" digital press partner will be globally. I think you will agree that it makes sense for them to remain partners with us. Our relationship with Kodak keeps them arms length to "their own" technology that they abandoned 10 years ago and allows them to leverage both the "entry" level and "high end" digital press lines.

What we will see from this is a stronger commitment to automation (JDF and CIP4) and faster advancements in feeding and registration (mechanical feat advancements) which might take us years to accomplish on our own. The battle is tough but we are making progress! Don't let any small setbacks or individual battle losses get in the way of the big picture! Stay the course!

Big Iron Mike,

7-13-2011

7 months left...

Exit Stage Left... Elvis has left the building and the sinking ship....

I thought that this was already old news but people seem to keep asking about it so here it is:

From: M.Espe

Sent: Friday, June 25, 2010 7:21 AM
To: DL-All US Users
Subject: Thank you


It is with mixed emotions that I am announcing my departure from Ricoh. It was an extremely difficult decision for many reasons, particularly because of all the momentum we have built and the strong opportunities in front of us. Most of all, I am going to miss the dedicated and energized employees that make up our great team. I have forged many close working and personal relationships with many of you over the years, and I will always look back fondly at the time I have spent at IKON and Ricoh. I am very grateful for all that you have done to position Ricoh as a leader, and the work I know that you will continue to do in the future to create an even stronger organization.


The opportunity to take on the CEO role at Armstrong, a publicly traded NYSE company headquartered in Pennsylvania, was a great fit for me both personally and professionally, and one that I could not ignore. Knowing that we have a strong leadership team in place with Kevin Togashi and the Ricoh Americas staff, and that our leaders in Ricoh U.S. now have the vision, strategies and support to carry our integration planning in the U.S. forward, made the decision easier. I leave knowing that you have a strong leadership team, the best employees in the industry, and by far the strongest portfolio of technology and solutions to offer our customers and dealer partners.


You should all be proud of the work you are doing and the company that you all help shape. The past eight years at IKON and more recently as part of Ricoh have been extremely satisfying for me, and I remain energized by your commitment to Ricoh’s continued success and the opportunities you have to create something great. I know you will build on the foundation you have to strengthen the company, grow revenue and increase market share. Most of all, I know that you will continue your intense focus on the customer and dedication to Ricoh’s success.

I want to thank all of you for your support over the years, and for the privilege of working with this great team. I wish you all the best in the future and know that Ricoh’s best days are ahead.


Thanks,


Matt Espe

So really what does this mean? Why would Matt leave a pretty solid position with Ricoh Americas to move along to well I had never heard of Armstrong so I have no idea what his motivation is. What I will say is that quite a few of Ricoh's leadership have popped up at places that I have been and they were all pretty tight lipped but have all left the building. Matt on the other hand has left the building and the industry. Probably a good move. I have no other qualifications but to stay and wait for the next round of acquisitions and mergers.
 
So what is going on out there? Things have gotten very quite about Canon and the Oce... Not much on the home front as I still am struggling to get my arms around my next steps. What I can say is that I have gone from Champagne to a glass of water with lemon please...
 
So tell me what is a pirate without his ship?

Ricoh – IKON; Canon – Oce; Konica Minolta – Danka; Xerox – Global Imaging; Can You Say “World of Uncertainty?”

In an industry that is collapsing into a few very powerful mega manufactures it leaves an uneasy feeling in the minds of many salespeople that call this business their own. With the Canon-Oce purchase moving forward this brings some "heavy iron" that Canon desperately needs in its arsenal. The Kodak relationship with Canon surely is being undermined by the Ricoh – IKON acquisition. IKON was 60% of Canon's distribution network and placed most of the KODAK "heavy iron" and has been able to keep that piece of the business intact. Kodak at least locally has let go almost all of their sales force. In a market segment that is not conducive to "over the phone" selling; Kodak doesn't have the bandwidth to really market their big iron Digimasters/NexPresses. I think it is hard to believe that with such a coverage model that they can be successful. It almost appears that they are hoping that the Ricoh – IKON relationship will move the hardware for them.

I could see in the very near future Kodak divesting from their Digimaster and NexPress technology and selling that portion of the business to Ricoh. Canon will soon move away from their platform as they develop their own hardware that meets the higher end of the spectrum anyway. Now with the Oce B/W heavy iron they will no longer need the Digimaster technology in their portfolio. This will leave KODAK very vulnerable and weak with no way to move their hardware. What makes sense is that KODAK deal with the software and solutions end (which is the most profitable) and leave the hardware up to Ricoh they have a distribution network for their products that they cannot afford to create themselves. I think KODAK will retain the patents and continue to manufacture the hardware but I do not think they are being very successful moving it. Or maybe they sell off the entire division to Ricoh. Ricoh has deep enough pockets to take it over and the economy of scale to actually make money with the science. They will revamp the lines and come up with a new pricing structure that will give the NexPress some teeth.

With Black and White volumes decreasing the need for Digimaster type products is declining as the fast plastic gets more reliable and "self serviceable. " Xerox and Ricoh have perfected the art of getting the user to replace the majority of the simple parts. Digimaster type products require very skilled and expensive technicians. The Digimaster may go away completely not handing the substrates that are required today and never developing their image quality over 600 x 600 dpi. It will be interesting to see if Ricoh just takes the NexPress and leaves the Digimaster to die a slow death as they have some high speed black and white technology that will handle these volumes. Surely it will save them money if they can just purchase the piece that they need (high end color) and leave the black and white to their developers/engineers as they already own some of the technology to do datacenter printing. Konica Minolta is quickly developing their own "Black and White Big Iron" as they have no choice.

Xerox is the only manufacture that has the whole thing covered soup to nuts. Canon & Konica Minolta will come in second place with a close fit for most applications. Ricoh still has some terrible gaps in the mid and production color. With the C900 being only 2 bit color and the fact that many stocks won't even allow the toner to fuse to the paper it just isn't a very good option for anyone that wants better than mediocre business color at high speeds. IKON has done a great job trying to convince people that it is "ok" to be average. Talk tracks of close registration (which it will do) and productivity (only if you can get the toner to stick) are their battle cries. Now with a Creo controller and a robust Fiery Q-Series server only adds to the anguish of how much can you do with so little? I do believe that the kinks will be worked out in the second round of the machine which promises to be built around a new engine that will not use pulverized toner and fuser oil as its base technology but come up to this century with an engine that can use a polymerized toner like its slower office counterparts.

Once the Mega-Manufacturers settle down the rest of the Sharps, Toshibas etc will either go away mad or just go away! I do not think that they have the ability to rush into the market with robust product lines. Maybe I'm wrong and there will be a place for the Kyocera fleet machines. I just see leaving the production equipment an opportunity to lose the fleet. I was once told "own the head and the body will follow." If you have a Kyocera or Sharp fleet but use Canon in the marketing department and in the print shop and probably in billing and statements or the datacenter how long will it take for them to undermine your position in the fleet? More than likely not long…

Now that we have the newest "Gold Rush;" MPS is providing dealers and manufacturers alike a new toy to play with for a while until it becomes the next new commodity on the block. I am interested to see how this all pans out. Everyone is in turmoil. Xerox is trying to figure out how to "eat the elephant" that they bought both in ACS and Global, while Ricoh takes their medicine trying to keep down the sour grapes that they got with Ikon. Konica Minolta has survived the arsenic that they consumed with their acquisition of Danka, and we have yet to see how Canon will do trying to control the mad house that is Oce/Imagistics.

Wow a 4 ring circus now all we need is a master of ceremonies or a ring leader! What fun it is to be a big iron salesman these days!

Pirate Mike

Pirate for hire!

Pirate Mike no longer works for the one world leader! Expect more commentary from the rouge one!

RiKON, IKON’s struggle for the right to exist…

Ok, October 1^st 2008 has come and gone. And so have the IKON fiscal year, and our Pantone 185 Red. Now we are the step child to the one world leader in business technologies and equipment manufacturing. Xerox's Anne Mulcahy mentions IKON/Ricoh as the new threat to Xerox's supremacy in one of her last talks to the corporate shareholders. So now that we are donning a new Red in our logo (Pantone 186) and have a new phase tagline on our business cards "IKON a Ricoh Company" what does the future hold for us?

I can still remember the year prior to the acquisition and the marching orders that we had. Looking back I can see the signs that should have signaled the takeover. Looking forward I am seeking the signs that will indicate my future. Now after a complete quarter in the new Ricoh fiscal year the signs that I see are not as descriptive as I would like them to be. The mantra of protect the base and explore the new world are really just warmed up battle cries from previous generation. What I do see is a lot of shuffling, maneuvering, positioning, and jockeying for the privileged positions in the new one world leader's house. As the days of IKON come to a end, so will the legacy of the world's largest independent distributer of end to end business technologies.

I see leadership poised to make quick and many times knee jerk reactions to the ever flowing economic hard times ahead. One thing that I have noticed about IKON is that they are not scared to make a quick decision. They will uproot you in a second. One day covering one account and another day another, in some senses this ability to move quickly has brought them to a position of greatness. But in another sense it is why no one seems to have any ownership of their own success. They are only successful in the task of the day not in the overall success of their position. Maybe I have a very narrow view coming from just one IKON marketplace. Now almost 2 years into this adventure I am one of the sales survivors. I am now a tenured veteran walking the hallowed halls quietly for fear that I might awaken the sleeping giant.

Now a Ricoh company we see that our chest beating over the Canon product was just another marketing ploy that we used on our clients and eventually came to believe. It is funny to spread a lie what is even funnier is when you actually believe it. What we have learned is that people really bought from us and not a product name? So what Ricoh really purchased was a network of people and relationships strategically located in 400 unique locations around the world. I was on an international conference call with the IKON of the UK and found that they too are just like us and are engaged in the fight for world dominance just like we are. They ask the same questions and provide the same solutions to their clients as we do.

Amazing how we all are fighting the same battles, with a lesser or greater degree of success. We are now learning to sell a new product (or at least new to us) this new world of Ricoh innovations. What I am finding just like I did selling Konica Minolta or Canon is that Ricoh has products that when placed in the right environment with the right enablers they do wonderfully (even in the print for pay market.) There I said it Ricoh products can be used in production environments, did you disbelieve? Did you really think that Xerox and the others we all have come to know and love were the only ones privileged enough to make good production equipment?

Watch the evolution of the engineering as the new 7 series comes out. Hide and watch as the group formerly known as IKON comes to market unified under the RiKON banner. Many rats have scurried and left what they thought was a sinking ship only to have their A*s' handed to them by what they said would be an inferior product. What I say is it must be embarrassing to those reps that fled to Canon to only be beaten like a red headed step child by the product that they swore could never grace the floor space in tandem with other greats like Xerox and Canon; only to find out that their new MIF is slowing going away to these new raiders of the lost copy machine.

So is it the product? Is it the people? Is it the process? Well I will let you figure that out. What I am interested in is what to expect in the next generation of RiKON. They are taking over our internal processes, Shipping etc. So how will this all shake out? What is to become of the IKON of old? How will the sales territories be realigned and divided up amongst the corporate raiders? Will IKON's leadership be incorporated into the Ricoh world or will they just cut the head off of the monster to let it die a quick death?

Watching the slaughter going on at Konica Minolta now that they have cannibalized the Danka people puts me in a bit of distress. They (Konica Minolta) have shown their Minolta roots. Minolta was a strong down the street company. They did not need fancy analysts and strategy sessions. What they needed was feet on the street and quick turn business. They were not interested in anything that couldn't be closed inside of 30 days. Really 21 if you expected it to get delivered in the same month. Konica's deep thinkers have all but been sacrificed and it looks as if they will do the same to Danka's people. If you do not have Minolta blue running through your veins your chance of survival in that pit of vipers is not very good, so be forewarned.

Now so how does that relate to IKON and Ricoh will PMS185 or PMS186 prevail? Will the darker red over take the pirates of IKON? One thing is for sure there are a lot of similarities in the Konica – Minolta merge and the IKON – Ricoh acquisition. Both engagements have a strong hunter and farmer component; although financially different Konica – Minolta was a merger, do not forget that IKON – Ricoh is an acquisition. We are an owned piece of property. So will the same be true here that IKON pirates will slaughter the pleasant farmers of Ricoh or will they show their teeth and push back the boarding marauders?

What I have witnessed is that everyone is scared for their job. No question that every employee has thought once or twice what they will do if their job becomes disposable. As we all are very well aware we all can be replaced in a second and without much thought. One thing I will say is that many have come to grips that this is the new program and they are executing. As we push forward we see how well this new equipment is holding up and that people really don't care whether or not they have a ball an X or red words written on their equipment. What they care about is when they call will anyone answer? And if someone answers will they be able to fix the problems that come us as they most certainly will (it is just a machine).

Before we were searching for the ultimate top line, now again we are concerned again with the bottom line, and soon we all will be walking the line as Ricoh puts the firing squad out to lean down into the fighting machine they will have to be to survive this economic holocaust. So are people still buying; of course they are, in upturns and downturns this business continues to provide alternative solutions to cost savings and automation with ultimately provides for real top line and bottom line revenues as productivity goes up and we learn to do more with less.

As for me I am glad to have a job that provides for me and allows me to continue the battle. Tomorrow again I will pick up the battle axe and let out a cry this time the name is different the red is darker but the result is the same; Victory! Stop at nothing less.

Just a bit of inspiration from the RiKON ship of warriors; from the man known all around the world as Pirate Mike…

Happy Hunting…

Eastman Kodak, another one bites the dust…

Ok this is purely conjecture but I am starting to hear about push back when proposing Kodak products to high level clients. My local superiors are saying the typical, "business as usual." But we know what that means, "They dont know and they want us to keep marching without missing a step."

The rumors are that at the higher levels they are being told not to go forward with Digimaster and NexPRESS products as they will be going away soon. So I am putting my feelers out to get more feedback from YOU. Many times you know what is happening before the news hits the street. I had heard months ago that Ricoh was looking at Kodak for the high end production black and white and color and so they would not have to develop a strong workflow product.

I was recently in a position to be aware of a huge Federal deal that would involve thousands of machines, the word from the silver hair and black tie side of the business is a "no go" on the Kodak products the word coming down from their superiors in the fancy building with the pearly gates is that HP is making a play for Kodak and that that product line is going away anyway!

Going away anyway? What do you mean says the innocent pirate who sells the big iron? Yes going away says the silver haired man in his late 60's. Could it be that Ricoh the 'new' one world leader is coming forth with its own product to replace it. Replace it wow; that sounds well wow…

Could it be that the great minds that gave us the engine for the IBM infoPRINT have stepped down to create for us "the ants of the 'new' one world leader" a great and ultimately powerful multi-function of destruction?

The great destroyer of all that is Docutech, Varioprint and Digimaster? Wow, (for those of you that don't know better don't hold your breath.) I am very interested to see what we are going to replace these MaMaMaMillions of clicks a month Machines.

What could this new Multi-Function of Destruction look like? What will be its call to arms. Will it cost those that wield it their souls? Will it be like a cyborg and run itself? How far into the future do we have to look to get a small glimpse of what is coming down the pike from our engineering friends across the great oceans from our 'new' one world leader?

I do not know of what could be motivating people to NOT sell the Digimaster products especially since we have always been the largest channel for these products anyway I would rather us buy them than another competitor especially like an HP that already is whooping up on us with their Indigo sheetfed and web products I really do not need them coming down into my small shops and taking away all that which Ricoh has giveneth.

One thing that is very apparent is that Kodak is a bit vulnerable at the moment. After posting a “preliminary Net Loss of $137 million, or $.51 per share.” For the 4th Quarter of 2008 and watching their stock dwindle from a close on April 28th 2008 of $17.89 to $3.95 April 28th 2009 they have seen better days. Watching a company prepare to lay off 4500 people or almost 18% of their workforce could start a few rumors all by itself.

Hey if you have the inside track please feel free to enlighten me as this has become the great soap opera for all things pirate-like.

Pirate Mike…

Let the games begin…

2000 years ago the way it was intended:

Psalm 23 (New International Version)

Psalm 23

A psalm of David.

¹ The LORD is my shepherd; I shall not be in want.

² He makes me lie down in green pastures;
he leads me beside quiet waters,

³ he restores my soul.
He guides me in paths of righteousness
for his name's sake.

⁴ Even though I walk
through the valley of the shadow of death,
I will fear no evil,
for you are with me;
your rod and your staff,
they comfort me.

⁵ You prepare a table before me
in the presence of my enemies.
You anoint my head with oil;
my cup overflows.

⁶ Surely goodness and love will follow me
all the days of my life,
and I will dwell in the house of the LORD
forever.

The way it is now:

Pselling 23 (New Pirate Version)

A Psalm of Pirate Mike

¹ He (Ricoh) is my Manufacturer and Employer; I shall not want for a new Canon or Konica Minolta box.

² He makes me go into print shops without a mid production color machine,

He leadeth the PPBG right into my accounts and offers them my bread,

³ He continues to retrofit the C900.

He guides me in the way of business class color

For his reputation sake, and because he taketh away my Konica Minolta equipment.

⁴ Even though I cold call

Through the valley of the death of the copier,

I will fear no Xerox, Canon or Konica Minolta dealer or direct channel,

For you are with me in my RFP's with pricing support,

Your toner and drums,

They will offer us profitability and high yields.

⁵ You prepareth my compensation and high quotas as we approach a new fiscal year,

In the presence of my competition you give me a machine that useth fuser oil;

My oil applicator runeth over with that damn oil.

⁶ Surely you will offer me a promotion and company profit sharing,

All the days that I sell your product,

And I will dwell in the demo room, (at the direct request of my regional production director)

Forever. (Or until I can figure out to get a transfer to professional services, or managed print services)

Amen and Amen

Pirate Mike Commentary:

The bloodletting in this industry is just beginning. (Bloodletting is the withdrawal of often considerable quantities of blood from a patient in the belief that this would cure or prevent a great many illnesses and diseases - Wiki) Konica Minolta is finally merging Danka Imaging with Konica Minolta Business Solutions and going through reorganization. Maybe into a group named something like Konica Minolta Imaging? You can be sure there will be plenty of announcements short coming as they get ready to start a new fiscal year April 1^st. Expect to see them position the Danka group as their production experts as they try to hold onto their Canon base and high volume accounts. They leveraged a relationship with Oce and bought a Xerox dealer and pitch used docutechs and other odd equipment they couldn't market or support. I am sure that the "Danka" group will be how they try to reposition their production print business group as they move forward in the world of production printing. They have cut tons of positions sifting the wheat from the chaff or at least leaning down the talent that they feel is expendable. Their annual report is a good read but their Slides for 3Q / March 2009 Consolidated Financial Results are a bit grim. You can look at them yourself here. (Slides for 3Q/March 2009 Consolidated Financial Results)

Xerox has reduced their first quarter view by like 80 percent. You can read more about that in Business Week here. (Xerox cuts 1Q view nearly 80%) Canon is hell bent to replace IKON with its own direct organization while Oce just bleeds to death. All the meanwhile Toshiba and Kyocera keep plugging along hoping to challenge the big 4 while Xerox, Canon, Ricoh and HP figure out how to outlive the economy. Ricoh will do its own bloodletting soon as they look at their first born RBS and step son IKON get ready to battle it out. Be prepared to struggle to get first row seats as this bloody battle will be worth watching; as the IKON gladiators dismember RBS and their PPBG group. Soon the streets will be full of copier salesman that didn't see the writing on the wall. We are about to witness the death of the copier era, and then we will usher in a new era of managed print services and outsourcing like we have never seen before; as we all look for a new identity. Our jobs really don't end they just morph into new expectations and roles as we chameleon into what the industry and our customers dictate. As their needs change and evolve so do our products and offerings and the way that we offer them.

As the plot thickens watch for more takeovers and bold chess moves as companies start to gamble with everything they have to jockey into position to be around next year. It is anybodies game and no one can completely predict the outcome as the cast of characters thins down like a bad murder mystery. As the "who dunit" is still waiting to be unveiled to the unsuspecting witnesses. I wrote the above play on the Psalm that is well known as a parody to what is my life. As I look around for a solid indication that things are going to be ok what I do notice is more industry unrest.

This bloodletting that I am witnessing is getting more common and it is amazing how many people are showing up looking for jobs. All I can say is that it has been Mr. Toad's Wild Ride and was definitely worth the "E" ticket! I am excited (as I have no other choice) to watch the second round bouts between Gartner's Leading 4 and to see how the Challengers bring to bear their tactics and strategies to market. We are looking at gorilla warfare for sure as the pressure mounts so does the antics that go along with the business. I am interested to see how this affects the ancillary functions of our business like research, development and support, or if those areas go unscathed.

Wishing You Well in 2009

Pirate Mike

Cain & Abel – A copier odyssey of biblical proportions…

Typically my stories are filled with the normal corporate piracy and plundering, in this saga what is interesting is that the piracy is between blood brothers. Truly what is funny is the older that I get and the longer that I am in this industry the more the truths of my parents and the stories that I grew up with have more meaning. It is never shocking how the stories that we grew up with becomes more clear and are eternally applicable in many circumstances in our daily lives. The sad thing is that many times I am living the stories out and wish that I could just be a casual observer instead of being cast into a lead role.

As you will remember from the story Cain and Abel was the first and second son of Adam and Eve. Their story is much like the deepening division and dangerously real world drama between Ricoh Business Solutions and IKON. Cain the first born, a farmer, commits the first murder by killing his brother Abel the second born and, a shepherd. I liken this to the ongoing and ever growing attack from RBS the first born son of our Father Ricoh known as a farmer in the world of document management solutions and equipment and IKON the second born son a shepherd of high volume production solutions and a hunter. After the merger we were told "we are part of the Ricoh family." During this time offerings came forth showering IKON show rooms and offices with upgrades and golden trinkets in the form of upgrade incentives and lease forgiveness. We all felt the love from our father as we were welcomed into the family fold.

Both brothers were given a gift of the Ricoh Pro C900 Digital Color Production System. Cain went out into the field and started plowing the fields and looking for seed. Abel left for the forest to find a good place to perch and scout new kills from. Cain set out to wait for the rain, while Abel looked for something new to kill and takedown. The twist is that the coat of many colors had been bestowed upon Abel for his hard work and diligence like the biblical story in which Abel was able to please God with his offering. IKON was acquired and given the coat of many colors due to its hard work hunting and able and willing desire to lead in the hard world of production print. IKON was groomed to be in a place of authority in the production realm. Cain had worked hard and had produced the PPBG a dedicated (Production Print Business Group) and although they tilled the land they were unable to produce a crop. (even with the NexPRESS and IBM Infoprint) IKON with no former knowledge of the Ricoh family story was able to hunt down new opportunities and develop relationship which would place him in favor with his father and sell the new production device the Ricoh Pro C900.

Cain furious with his father and in great despise of his brother went constantly out of his way to position his brother in poor light. Constantly hammering away to move Abel away from the production opportunities and him shamed in the father's eyes. I have always been raised in this business believing that there was honor among thieves. It is interesting to me how 2 brothers can fight so furiously about accounts that one has no knowledge or presence in. Why would you cry so hard over something that you cannot manage in the first place? They admittedly do not have years of production experience as they have never had a product to sell into that space. They do not have the proper infrastructure and service organization to service such accounts. Nor do they have the professional service and analysts that are needed to be successful in these environments. And why would they want them? They are low margin, high maintenance and very frustrating at times. To please their father? To secure their position as the head in the family? And why would they try to destroy what their father just purchased? Do they think if they can discredit the purchase that will make themselves more valuable? Do they not understand that both the farmer and the hunter are needed in the family?

If we are working for the good and betterment of our father would it not be considered selfish to take on tasks that can be better served by another? The inherent selfishness of Cain, his jealousy, rivalry, and aggression are central to this ever evolving story. I would get deep into the details but they are still unfolding and I don't want to ruin the ending for you when I myself do not know what lies ahead. What I can tell you is as we travel further down this high volume and production print road with nothing but the Ricoh bag of tricks I can promise you that you will hear many an IKON warrior say over and over, "He is not heavy, He is my brother!" If only they could see that now, the pain and damage they could save us all.

And the honor they would bring to their father, if they only knew.

"In the end all we are left with are the memories of those that loved us and the stories we told to them." ~ Pirate Mike