Tuesday, July 7, 2009

Independent MPS: Google is in with both feet. If you can't beat 'em, join 'em.

IMNSHO (in my not so humble opinion), the opportunity for Independent MPS is to resell Google Apps as part of an MPS solution. Everyone understands the cost of email. Lower it to $50 a seat, get a commission, and install the boxes. They will save enough from the enterprise computing to make the invesment cost of the MFPs to disappear.
Google Apps Premier Edition Gets Key Improvements from CIO.com
"These latest moves show Google Enterprise's increasingly pragmatic approach in selling its software to enterprises, even if that means making it work with legacy technology, says Gartner's Cain. In May, Google added a connector that wedded Gmail with enterprise BlackBerry e-mail clients. In June, it announced that enterprises who purchase Gmail can enable their users to access their e-mail via a Microsoft Outlook client on their Windows Desktops.
. . .
Enterprises have appeared to take notice. Google recently landed a new customer in Fairchild Semiconductor, which recently migrated more than 5,000 users to Gmail in just three weeks. According to Google, the company will see a projected savings of $500,000 a year. In June, JohnsonDiversey, a cleaning supplies company, moved 12,000 users over to Gmail.

According to Cain, Google's ability to respond quickly to customers has stemmed from its cloud computing model. Google delivers software by hosting the applications and having customer companies (and their employees) access them via a web-browser. Google updates its software using an agile development model, making changes frequently and rolling them out to most customers. This differs from on-premise computing, a model used by many incumbent software vendors, where changes happen in yearly (or multiple-year) periods.

Independent MPS: Google and Microsoft need you.

As it is for printers, so it is for Google. The best way to get new business is to pick up the phone. The money sentence:
Google have yet to get back to me with information or details… or a reply for that matter.
If you don't have time, let Independent MPS resell it for you. No doubt the good ones will answer the call. Plus they need a way into the education cloud. And then need a way to deal with internal IT geeks.

From ZDnet:
Universities are increasingly moving away from in-house email and communications systems, and moving towards externally hosted systems. While that may have sounded like utter garbage and geek speak, it means universities can’t afford or cope with their own email systems, so they’re letting Microsoft and Google do it for them for free.

For free? Yep. Absolutely free. What to Google and Microsoft get out of it? Very little; if anything it actually causes them to lose money, but it really pisses the other one off by getting an upper hand over the other one.

I’ve been hounding my contacts at Waggener Edstrom for weeks now in an attempt to gain access to the software, to experience first hand how it works and what students are to benefit from it. My contacts prevailed and yielded a test account.

Google have yet to get back to me with information or details… or a reply for that matter.

The high margin deliverable is the spreadsheet (analytics)

It's true for Google, Amazon, RRDC, CGX, XRX, EK and anyone else in the "media" business. It's what you can learn from the network. Not what you can tell the network.

Here's the money sentence:
He's employed contractors, but with the new funding, he expects to hire full-time programmers and improve his computing infrastructure. Also coming is analytics. 'We will be offering that sometime here soon,' Gilbertson said."
And some background for context:
from CNET
URL shortening is hot--but look before you leap

Growing like weeds
URL-shortening services are abundant and becoming more so. They're usually designed with a priority on minimum character length, not easy reading: Is.gd, Bit.ly, Twurl.nl, Tr.im, Sn.im", Cligs, and TinyURL.

If you want to see dozens more, Mashable has a long list.

And the traffic they handle is large. On a typical day right now, Bit.ly is used to create 5 million to 7 million shortened URLs each day, and it handles 25 million requests to expand them--and the growth rate is at a breakneck 5 percent to 15 percent week over week, the company said. Snipurl has delivered 53 billion since its inception. And TinyURL has a database of 293 million URLs.

: "So what's new now? First, Twitter, and second, shortening URLs is becoming an actual business--notably at present through the addition of 'analytics' features that can let those who use the service see data about how many people clicked on links, when, where they're located, and the Web page where they found the shortened link.

TinyURL's funding today primarily comes from advertising on its Web page, but that's changing, said founder Kevin Gilbertson. 'I'm working on something else that should increase that (revenue) quite a bit,' Gilbertson said. He declined to share details at this stage beyond saying, 'It will not change any functionality.'

Amazon v Google v IBM and Clickable Print. Must read from Media Post

It's Google v Amazon v IBM for control of the Cloud.

As of today, it looks like Amazon + Sprint via Whispernet. It's Apple + AT&T via iPhones. Verizon + RIM via Blackberry. 'It's Google + Nokia, Samsung + et al. via Android.

Now we read that Amazon is getting ready to deliver contextually accurate ads in ebooks on the Kindle. We further read that "Tracking the ads would rely on bar codes or another type of numeric code placed on the ads. I would let advertisers know that people saw the ads and want to know more."

So how far away is this from free-to-the-reader of books? The step to free-to-the-school textbooks or versioned clickable newspapers seems a natural.

The most likely driver will be Amazon and/or Google. They could deliver through Oce, Xerox, Canon or KM, using a printernet publishing model. A less likely driver might be IBM. But they seem to trapped in a blind spot in regard to print. Perhaps it will be Google + CGX + Alphagraphics. Or the really long shot would be HP and Indigo. But HP is probably to busy being busy to focus. By the time they turn the ship around, the market will be full of early adopters and first movers.

Kodak? If they could free up the Creo offset part, bring in the newspapers and build on the connection with KM they are the dark horse.

Only time will tell, but I've copied the most of post from Media Post. It is, in my not so humble opinion, a must read.

One co-inventor, Udi Manber, left Amazon for a gig as VP of engineering for search at Google. Filed December 2006 and granted last month, the patent would give consumers who purchase a print book an electronic copy of the physical version, too.

Two additional patents filed by Amazon, published July 2, describe incorporating targeted advertising in on-demand generated content. These patents, filed in Dec. 2007, provide an example for advertising on Kindle.

The patents clearly note that Amazon would insert advertisements throughout the ebooks, from the beginning to the end, between chapters or following every 10 pages, as well as in the margins. A cross-reference feature would add annotations, supplemental reference materials, and illustrations, as well as the ability to print on-demand paper copies in PDF and other format files. Kindle relies on Sprint to download content to the reader.

Slawski says Amazon's patents claim several advantages to serving up ads to consumers. One such benefit considered has been a lower price for the book if the consumer agrees to view advertisements. On page 12 in the novel that describes a restaurant, for example, Kindle would serve up an ad on food or dinning in the margin. If the novel takes place in Europe, the advertisements might relate to European hotels and resorts. For those who have a profile, the ads could also tie into that information.

Tracking the ads would rely on bar codes or another type of numeric code placed on the ads. I would let advertisers know that people saw the ads and want to know more. The code might associate the code and the ad with a specific consumer if the person logs into the profile page. The patents also describe interacting with the ads to get more information.

Advertisers would need to provide additional information to Amazon, other than the ad, so it is shown in places relevant to the person ordering the book.

Worth Watching: Telecoms Face Antitrust Threat

Antitrust means lower margins.
Telecoms Face Antitrust Threat -
WSJ.com:
"The Department of Justice has begun looking into whether large U.S. telecommunications companies such as AT&T Inc. and Verizon Communications Inc. are abusing the market power they have amassed in recent years, according to people familiar with the matter.

The review, while in its early stages, is an indication of the Obama administration's aggressive stance on antitrust enforcement. The Justice Department's antitrust chief, Christine Varney, has said she wants to reassert the government's role in policing monopolistic and anticompetitive practices by powerful companies."

Somebody needs to tell these folks about clickable print, printernet publishing and QR codes.

Harris Connect Selects Acuity Mobile to Develop Harris Connect Mobile:
"About Acuity Mobile

Acuity Mobile is a leading provider of mobile marketing content delivery solutions. Acuity Mobile's Embedded Mobile Advertising Platform (eMAP) is a patented technology that enables Spot Relevance(TM) - the ability to deliver targeted marketing content to the right person, at the right time, in the right location. eMAP technology is used by carriers, advertisers and content owners to ensure that relevant content (ads, offers, traffic, weather, etc.) is delivered directly to mobile users based on their interests, time of day and geographic location. The technology behind eMAP was first developed in 2000 and patent protected since 2003. Acuity Mobile harnesses the power of mobility to improve content delivery for marketers and their consumers. For more information, please visit www.acuitymobile.com.

About Harris Connect Founded in 1963, Harris Connect is the leading provider of affinity marketing solutions including alumni and member publications that range from directories to coffee-table editions to commemorative books; research services to update email, phone and mailing address information; online communities and applications built on the Facebook platform; and now mobile marketing strategies, as well as programs designed to produce non-dues revenue for their clients. Today, Harris Connect serves more than 4,000 clients worldwide. The company is headquartered in Chesapeake, Virginia with offices in New York and Texas.

For more information about Harris Connect Mobile, go to harrisconnect.com/mobile. For general inquiries, send an email to moreinfo@harrisconnect.com or call 1.800.326.6600

Color cube, color cube, who's buying how many Color Cube?

Today anon said

They are not competing on price either at present the price point is twice that of Canon and Ricoh!

Michael J said...

That's a problem for X. I assume the sell has to be the Lifetime running cost. While that is the sensible way to to think about it, it's going to be very hard to get too busy being busy people on the ground to have anything more than a "how much is this going to cost me now" bubble in their head.

I'm waiting for the next earnings call to see if any of the "analysts" can get hard information about firm orders or installs. If the numbers are good, X might have a winner. If not, then not so much. It could be a Betamax v VHS situation.


Here's the way I see it
The margins are the network, not the boxes. Networks increase their value in proportion to the square of the number of members. MPS is creating and selling networks. The metric for MPS is long term cost savings. The initial investment is handsomely paid back in forward-time. The challenge is that it is very hard to get a customer out of now-time into forward-time.

If Com Doc can sell into forward-time it should work. If independents are incented to incorporate the Color Cube into MPS that should work. But, if not, the Color Cube could turn out to be great technology that doesn't scale fast enough.

If Xerox releases Erasable paper as a sweetener to a Color Cube centric MPS deal, I think that would most definitely work. Erasable paper forces the customer to think in forward-time. Once there, the discussion is much easier to have.

It will be interesting to see how Canon and Ricoh, et al are responding on the ground. The reality is that the window will be open for a bit, but only for a bit. If Canon and Ricoh can duplicate the reduced toner prices, their lower cost of entry could win the day.

If Fuji gets into the game with both feet, all bets are off.

Maybe PGAMA will take the lead in fixing high school with Print?

Time Printers' President Elected Chairman of PGAMA
- from WhatTheyThink:
"Columbia, Maryland- The Printing and Graphics Association MidAtlantic (PGAMA), a non-profit trade association for local printing firms and related businesses, appointed Al Maddox, Jr. as Chairman of the Board effective July 1. Mr. Maddox is the first African-American Chairman for the local trade association, and is also the first African-American to hold the title of Board Chair for any printing industry association in the country.

The President of Time Printers, Inc. in Baltimore, MD, a family-owned company that has been in business for more than 55 years, Maddox has served on the Board of Directors at PGAMA since 1999."

Re fixing high school
Job 1 is to improve attendance. Job 2 is to improve homework compliance. Once Job 1 and 2 are done, High School will be on the road to fixing itself.

Back in the day when I was working in a bottom of the pyramid high school we did an experiment.

1. Students were given personalized note pads. Their assignment was to stop for 15 minutes every day and write or draw what they were feeling or thinking about that minute. Every day they tore off a page and handed it in.

Week one: about 30% handed in the assignment.

2. We printed out an full color 8 1/2 by 11 chart and handed it to each student and posted on the bulletin board. Each student's name in the right hand column. A check mark if they handed it in.

Week two: about 45% handed in the assignment.

3. We repeated step two with the additional words that said, "Anyone who does not hand in three assignments will fail this course and have to repeat it." We also added words that said, "Please enter your parent/guardian's contact information, including mobile phone and email address. Then take this chart and have your parent/guardian sign it and return to class."

Week 3. About 10% returned the sheet signed. Homework compliance was over 90%.

Ah, the power of transparency and the power of Print.

Score for Transcontinental! Tell the SF Chronicle about clickable newspapers. It should be a win-win-win.

Transcontinental starts printing the San Francisco Chronicle - from WhatTheyThink:
"MONTREAL -- Transcontinental today began officially printing the San Francisco Chronicle daily paper at its brand new 338,000-square-foot plant in Fremont, California. The Monday, July 6 edition is the first to come off the presses at the plant."
No doubt the better color and better paper is very cool. But color might turn out to be a necessary but not sufficient condition for a newspaper's success. The business about being more of a magazine ish format will also help. The ability to do marketing collateral for newspaper advertisers is very very cool. Of course the regional commercial printers are going to get very nervous, but that's life in a competitive world. They have their problems. The Chronicle has its problems.

In my not so humble opinion, it would be very cool to get the whole QR code thing on the radar of the business people at the Chronicle. The data harvesting potential is just what the doctor ordered to get that revenue stream back.

It would be ultra cool if the Chronicle combined their long tail of content, editorial skill, and deadline driven culture with Transcontinental's long tail of super efficient manufacturing ability. Then they, instead of or with RDA, could produce Clickable Newspapers or Clickable My Weekly Readers replace textbooks in California.

The newspaper wins.
Transcontinental wins.
The kids win.

Triple wins usually get to "why wouldn't I do that?"

Xerox Offers Premier Partners Free Premium Membership to WhatTheyThink . Nice.

Xerox Offers Premier Partners Free Premium Membership to WhatTheyThink
"“Premium WhatTheyThink membership provides a great opportunity for our members to keep their entire staffs aware of the news, trends and expert opinions that are shaping the industry,” said Gavin Jordan-Smith, vice president, Premier Partners Global Network, Xerox Corporation. “With the slow economy accelerating the pace of change in our industry, a well-informed staff is a strategic asset.”"
The high margins are in the network. The boxes are commodities. Print is a commodity. Everything else, but the network, is a commodity. Commodity is a good business. But it is low margins, large scale. The marginal cost of the network is low. If you can sell access, it's high margin. If you can't sell access then go with read for free, pay for stuff.

Consider
WTT has been around for years. They have aggregated an audience that is all things Print in the United States. The marginal cost of that audience should be close to zero. On the other hand the cost in time, focus and dollars of growing that network is considerable. But now it has reached critical mass. To get easy access to all that print content is now worth $200 per year to a significant number of people.

As a web presence, the cost of the delivery infrastructue should be very low. That's using commodity tools to create something out of nothing. Very cool.

WTT in clickable print, printernet published
If WTT sold the license to Xerox? Oce? Kodak? HP? or all of them, to publish points of interest in Print, then the globals would have a constant supply of marketing materials that could be sent to their customer's customers. Plus it's a lot more likely that everyone at the PSP would become part of the conversation.

If they added dynamic QR codes into the mix, every designer would think they are way cool. "Way cool" is what attracts prospects. It's much cheaper then sorting through suspects.