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Hewlett-Packard Rolls Out New MFP's, Solutions and Programs

15 May, 2002 By: Bruce Thatcher imageSource

Hewlett-Packard Rolls Out New MFP's, Solutions and Programs

an announcement that will make copier-printer MFP vendors perk up and take
notice, Hewlett-Packard recently introduced three new black & white
workgroup multifunction printers. These products are offered with a set of
services, software, and support options that are intended to make it easier for
businesses to reduce costs by managing information from a single integrated
device. In an equally important move, HP is expanding its product distribution
channels to include its traditional COMDEX VARs and the BTA/copier dealer



HP LaserJet 3300 MFP series provides Windows and Macintosh users in small
businesses, home offices, and small workgroups with network printing, copying,
color scanning, and send-to-email capabilities. It is built on the LJ 1200 print
engine, which prints at a rate of 15 ppm and copies at 14 cpm. The LJ 3300 MFP
series is available in four versions with prices ranging from $499 to $899.


HP LaserJet 4100 MFP is a 25-ppm print and copy engine, designed for business
workgroups in small, medium, and large organizations. It is a network
multifunction printer that offers printing, copying, color scanning, and
send-to-email. Optional digital sending software provides additional document
management and distribution capabilities.


print and copy speeds of 50 ppm and a range of document finishing options, the
LaserJet 9000 MFP is designed for large workgroups and departments that need
fast network printing, copying, faxing, embedded send-to-email, and robust paper
handling. It also is available with optional digital sending software.



simplify the integration of paper documents into business communications
systems, HP is offering a variety of HP and partner-developed applications.
Optional HP MFP Digital Sending Software enables users to securely distribute
information via Novell and Windows authentication to Internet and LAN fax
servers, network folders, and workflow applications. When combined with Notable
Solution Inc.’s AutoStore 2002 software and Microsoft SharePoint Portal
Server, HP claims users will have a complete, integrated document management
solution for document capture, routing, storage, archiving, and retrieval. Other
HP and partner applications reportedly allow users to simplify electronic filing
processes, deliver documents securely over the Internet and convert handwritten
documents into electronic format. All applications are scalable.



PrintAdvantage is a usage-based program for the LJ3300, LJ 4100 and LJ 9000,
which allows small-and medium-sized businesses to obtain HP MFPs, supplies,
services, and support for a single monthly payment. HP describes PrintAdvantage
as a lease option that includes equipment, support, toner, priority phone
support, and maintenance kit replacements. All these features are included in a
single monthly payment, which can help users reduce costs by managing their
print environments, streamlining administrative and support processes, and
preserving capital. Optional elements include basic and network installation,
proactive supplies replenishment, support upgrades, and training. Contracts are
based on monthly print volume and on-site service levels. Under HP’s plan,
users pay only for what they use. Rates are adjusted yearly to reflect actual
usage rates.


describes its Managed Print Services Program as an outsourcing service intended
for large distributed printing and digital imaging environments. CAP Ventures
views this as a facilities management solution for large enterprise customers
with large office and production printing environments. In any event, HP will
analyze a customer’s current usage environment, design and recommend a
cost-effective and productive solution, implement the recommendation, and manage
any brand of device in the users’ digital hardcopy environment with a view to
reduce costs, increase productivity, and free up capital for other uses. HP also
assigns a person who is dedicated to managing the ongoing printing and imaging
devices. The company offers flexible payment options, including pay-per-page and
monthly pay programs.



expanding its product distribution channels to include its traditional COMDEX
VARs and the BTA/copier dealer channel, HP is looking for 125 regional MFP VIP
relationships and will recruit and develop them through a dedicated HP sales
team. HP feels that an opportunity exists for a new kind of reseller: a hybrid
who recognizes that technology is forcing a convergence of channels, and is
willing to take on the new skills necessary to succeed in this environment.
HP’s bread and butter, the traditional printer resellers, have strong
networking experience and relationships with the IT community. Traditional
copier dealers have strong pre- and post-sales service capabilities. They sell
on a cost-per-copy basis and offer some outsourcing and/or facilities management
capabilities to their clients. HP describes these roles as low-touch and low
cost for the printer resellers, and high-touch and higher cost for the copier


fill the void between the two, HP is creating an MFP VIP program to promote
sales of its new departmental LJ 9000 MFP. These “convergence resellers” are
further described as having very strong networking skills, strong IT and
facilities management relationships with high-touch sales and service
organizations, and the will to sell cost-per-copy contracts. HP plans to limit
the number of authorized MFP VIP resellers in each geographic region. To this
end, the company has recruited IKON to sell the new MFPs. IKON has about 300
locations. Print, Inc., also enrolled as a MFP VIP partner, will provide an
additional 16 locations.


new MFP VIP resellers have a minimum MFP sales volume requirement. They sell
products using the cost-per-copy model, have the capability to install MFPs and
train the users, provide post sales support, pass HP sales and service training
programs, have at least two certified network engineers per market, and sign an
HP reseller agreement.



qualification for the HP MFP, VARs can receive functional rebates for the
services they provide to users, including product installation, user training,
and assistance in selling HP supplies. In addition, VARs will receive special
discounts on HP demo products, reduced pricing for repair parts, free sales and
service training, access to advanced technical support from HP, HP generated
sales leads, and dedicated HP sales support.


HP MFP VIP Resellers will buy the products from the HP network of national
distributors, such as Tech Data. Sales and service support, however, will be
provided directly by HP. VARs that are too small to qualify for the MFP VAR
program may participate as agents for HP by becoming Web Associates. Qualifying
Web Associates receive compensation from HP in the form of commissions that
range from 10% for departmental MFPs to 6% for all other MFPs. HP’s national
distributors will provide order fulfillment, while HP provides installation,
user training, and warranty administration.



new products, programs, procedures, and partners are a welcome addition to
HP’s lineup. Some companies may conclude that HP is late to the party. For
example, Xerox has believed for several years that Internet enablement for
applications is critical to business productivity. Some companies are surprised
that it has taken HP this long to figure out that Internet enablement is the
wave of the future. Some have attributed HP's lateness in embracing the Web to
the fact that the company has not historically focused on the high end of the
market, where Xerox or Canon are major players. Nevertheless, HP is now
delivering strong products, services, and programs that will be tested by a
comprehensive implementation plan. HP claims that it has learned from its past
misadventures with mopiers and MFPs, and that those failed efforts have been
reviewed and analyzed. Failures often teach us more than successes, and HP is
working to ensure that it remains a driving force in the future.

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