Xerox Channel Chief Eyes Tektronix Integration

EDITOR'S NOTE: James Firestone, president of the channels group for Xerox Corp., Rochester, N.Y., spoke with Assistant Editor Amanda Stirpe about Xerox's acquisition of Wilsonville, Ore.-based Tektronix Inc.

CRN: How has the acquisition of Tektronix affected Xerox's channel strategy?

James Firestone: After the acquisition, Xerox's combined sales force is doubled worldwide. We have also doubled the amount of resellers to between 16,000 and 17,000 resellers selling Xerox products, Tektronix products or a combination of both. Not all resellers are certified to sell both products.

CRN: What efforts are being made by Xerox in regards to Web integration?

Firestone: The Tektronix group has been more aggressive than Xerox at embracing the Internet. They launched freeprinter.com, in which users enroll in the program and if qualified receive a free color printer. As we see it, there are three pieces to Web integration. First, we consider our marketing of products. Tektronix is more creative with Web-based promotions and can leverage across the whole printer line. Second, we look at the way we interact with resellers. Xerox was slightly out front of Tektronix so we will build on the Xerox base. The third consideration is related to the complete integration to the Web in all aspects of how we do business such as order fulfillment and communication. We are moving toward a Web-based business model, which is an aspect [where] neither side is particularly advantaged.

CRN: How are the two companies going to be branded?

Firestone: We are adopting an interim branding approach, which we will reveal later in the month. We will start with a broader branding approach and work up to a thorough permanent co-branding rollout in the second half of the year. We will start by incorporating the two brands together. The permanent branding will join the heritage of strength of Xerox with Tektronix's technology reputation.

CRN: What trends are you seeing in the printer market over the next six months and beyond?

Firestone: The overwriting trend continues to be the phenomenon of growth in the color market with the price points dropping as low as less than $200. We will also see a desire to have a fleet of printers with increasing integration of the Web for service, support and maintenance. There will be the existence of e-business resellers leading to pressure on the two-tier distribution model. The distributors will have to be more efficient, and the resellers will have to add more value. There is the risk of these two channels becoming disintermediated because of the Web. Resellers will have to become better in their expected roles in the value chain.