If Cho is reading this story now, he’s probably silently correcting its earlier reference to HP as a “hardware maker.”
“We are not a hardware company,” he said yesterday. Or at least not a hardware company alone. “It’s the hardware, software, and services coming together that we design,” Cho noted.
And the services piece of that equation looks especially promising to HP. “In a more digital world, services, rich digital ways of enabling people to get more out of their digital experiences, is a huge opportunity,” Cho said, noting that HP provides a wide array of services already. Consider the case of a home-based employee, for example.
“We can ship a PC or printer configured directly to the employee’s home, we can get it provisioned in under an hour,” Cho said. “We can make sure it’s monitored, and we can make sure it’s secured, and we can make sure that if there’s an issue, we can proactively identify it and remediate—our big word for fix it—remotely.”
There’s more to come in the future, he added, and more recurring revenue to be made through as-a-service offers too. HP has been selling PCs as a service since 2016, and sells ink and toner on a subscription basis as well through offerings like the Instant Ink program for small businesses it introduced this week. Within the next few months, it will also begin selling consumables and hardware together through a new print-as-a-service program.
“It’s going to be an all-inclusive subscription, and customers will be able to select the printer and the page plan that they want all for a low monthly fee, with 24x7 support and the ability to do regular upgrades,” said George Brasher (pictured), vice president of worldwide strategy and marketing for LaserJet and enterprise solutions in HP’s Printing and Personal Systems Group, yesterday. “We really believe this is a game changer for both HP and our partners.”
It’s also the kind of step HP must make to remain competitive, added CEO Enrique Lores. “This is how customers want to buy in the future,” he noted.
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