Xerox' Service Investments Reflect Well on Vernon Computer Source's Copier and Printer Rental Portfolio

We offer a great number of printer rental options for our business clientele, and most of them come from respectable manufacturers like Canon, Xerox, HP and others.

In our inventory, we carry various units across a variety of price points, and we’re finding that there have been a surge of requests for projector rentals lately. That’s because companies that would have previously purchased product outright are now turning to copier and printer rental programs to save money.

A dismal economy has sent many businesses scrambling to survive, which is definitely the reason for this influx.

But you don’t need to take my (a tech blogger)’s word for it. The Wall Street Journal just reported on this phenomenon in its May 11 edition, in an article entitled “Xerox Makes Push for Faster Services Growth.”

The WSJ is coming to the same conclusion I came to back on March 14^th, in my review of Xerox’ Q4 earnings.

Xerox is after the printer and copier services business – and is moving away from its historically lucrative hardware offerings. This is an interesting strategy for the company, but one that might make sense.

After all, it’s fair to assume that they know themselves better than any analyst – and the Q4 earnings were fairly substantial. Xerox beat analyst predictions, showed 42 percent revenue growth, and basically blew expectations out of the water.

Xerox has been tapping into the same market that we cater too – the copier and printer rental market – but they have the added benefit of being the actual manufacturer.

What we can offer, in perspective, is the options of other, tier one designers that have other products to offer – some of which can trump Xerox’ offerings.

According to the WSJ’s piece, chief executive Ursula Burns points towards the digitization of technology as a major reason that black-and-white page volumes have decreased – forcing the bellwether company to think outside of the box.

Burns stated that because of Xerox’ investment into their services businesses, the company expects to see growth at three times the rate of the technology area of the company – which is a substantial difference.

For 2011, Xerox has forecasted 3 to 5 percent revenue growth… and we're waiting to see if they can deliver.