Xerox Corp will announce a technology agreement with Microsoft Corp today, at a press event held at its PARC Palo Alto Research Center. Microsoft president Steve Ballmer and Xerox CEO Rick Thoman are speaking at the event, where the two are expected to reveal that Xerox will build new versions of its digital Document Center copier range around Microsoft’s Windows NT and Exchange products, replacing the Unix-based software it currently uses in those systems.
Under ex-IBMer Thoman, Xerox is busy transforming itself from an analog copier company to digital copiers – essential if it is to take advantage of full system and network integration, where Hewlett-Packard Co has traditionally been ahead, particularly at the low-end. Digital product revenues rose 28% in the quarter and now make up roughly half of total company revenues. That growth was fueled mainly by digital black-and-white copiers, growth in monochrome network laser printers sold through indirect channels and growth in production publishing. The Document Center range, priced from $10,000 but stretching up to $100,000 at the high-end, saw sales of $1.8bn last year, around 10% of overall revenue, and strong growth.
Part of the agreement is likely to see Xerox and Microsoft designing document and knowledge management software applications together. Exchange will enable Xerox to automatically email and distribute documents scanned in via the copier. Last September, Xerox announced a similar agreement with IBM Corp’s Lotus Development unit, promising integration with the Lotus Domino web server software and Lotus Notes. The two said the tie-up would give customers a unified system for scanning, electronic document management, email, messaging, fax and distributed printing – but the deal wasn’t exclusive and didn’t involve any reseller agreement.
Xerox Corp also announced the long-rumored sale of its dpiX division yesterday. A consortium of customers signed an agreement to take 80% of the company, which produces amorphous silicon thin-film transistor arrays, used in high-resolution flat panel liquid crystal displays and X-ray digital detectors for radiology systems. The majority owner will be Trixell SAS, a joint venture between Philips Medical Systems, Siemens Medical Engineering and Thomson-CSF, but Planar Systems Inc and Varian Medical Systems Inc are also involved. DpiX, based in Beaverton, Oregon, was a spin-off from Xerox PARC back in 1996
DpiX is the last supplier of active-matrix (AM) liquid crystal displays (LCD) technology left in the US, but has absorbed around $170m in funding to date. The technology is thought to be still some way away from commercial viability. Xerox is thought to have been unwilling to pour more money into the venture. Earlier this year, Micron Technology Inc sold its Boise, Idaho display division to Pixtech Inc, for around $11m (CI No 3624).
