InfoPrint Solutions Company (IPS), a joint venture between IBM and Ricoh has set up their first ASEAN office in Singapore.
The joint venture --between the Japanese based electronics producer Ricoh and the Big Blue’s printing systems division—was finalised on 4 June 2007 in the United States.
IPS will be focused on four strategic areas namely InfoPrint Director, Color Print, Light Production Printing and Linux-based Controller Technology which it will incorporate across its product line that includes the workgroup family, production printers and industrial solutions. Based in Boulder, Colorado IPS said it is set to drive the next generation of innovations in output printing services and solutions to address the business needs of companies and organisations in the local market and will innovate unique and simple products to remain competitive.
“Our future plans for IPS include greater investments in research and development, as well as improving our professional service resources to better meet customer demands in the Asia Pacific. Ultimately this will translate into a higher level of products, services and solutions to address the needs of the market,” said Steven V. Kovach, general manager, Asia Pacific, IPS.
“The Singapore market has great potential as the growing base of global companies setting up operations here also means an increase in demand for sophisticated printing solutions and services. As such, we foresee an increasing need to efficiently manage information and informational output on behalf of companies operating out of Singapore,” said Jae Liew, Country Sales and Operations manager of IPS in response to why Singapore was the chosen destination to set up its very first ASEAN operation.
The IBM-Ricoh joint venture is seen as a further extension to the already existing 20 year relationship both companies have maintained.
Ricoh currently owns 51 percent of the joint venture although none of its staff are actively working in IPS apart from those who sit on the board of directors. 98 percent of IPS’s employees are from IBM’s printing solution division although IBM insists that Ricoh still contributes to IPS through its technology and the expertise of those in the board of directors.
IPS has some 1,200 professional staff that includes engineers, inventors, solution providers, patent holders, sales and marketing and support people. None of its products are manufactured in Asia. SDA Asia understands that its high end printers are manufactured in Rochester, USA while its low end printers are outsourced to alliance partners.
IPS has operations in Argentina, Australia, Brazil, Canada, China, France, Germany, Hong Kong, Italy, Japan, Mexico, Peru, Spain, Switzerland, Taiwan, the UK and the US and mentioned that it has plans to expand to other countries by the third quarter of this year although it declined to mention which ones since the business proposal has not been finalised yet.
IPS has a 5.9 percent market share in Asia Pacific and 11.2 percent market share in Japan. The organisation has launched four initiatives since it announced its joint venture in January of this year. The products are the IP 4100 entry-level monochrome CF solution, the IP 6700 M40 with RFID capabilities, the IP 2190 and 2210 light production solution and the IP5000 Color CF solution.
According to reports, Ricoh will acquire the remaining 49 percent of IPS over the course of the next three years as the joint venture becomes a fully owned subsidiary. After that, the company will continue to benefit from access to IBM’s worldwide distribution and sales network. IBM will also provide maintenance services to IPS for one year under a services agreement after which some 1,000 IBM printer maintenances specialists will join IPS. |
