Today RR Donnelley announced that plans have been finalized to create a technology alliance with HP to collaborate on the development of digital printing solutions for inkjet-based digital presses. According to Mary Lee Schneider, Chief Technology Officer of RR Donnelley, “Since the 1970s we have always looked to the market first for solutions to meet customer needs; when they were not available, we built our own. That has been our heritage. It is a nice place to be, because we are not beholden only to what is currently available in the marketplace.”

Just prior to Drupa 2008, both HP and RR Donnelley made significant yet separate high speed production inkjet announcements. “Our two presses are very different,” says Schneider. "In fact, RR Donnelley's announcement was part of the natural upgrade path we had defined for inkjet press technology--technology we have been refining and deploying since the late 90s. The interesting fact was that we had been integrating aspects of HPs commercially available technology. When we realized we were going down parallel paths, we realized we could accomplish more together than pursuing independent paths.”

Schneider is quick to point out that RR Donnelley has no intention of selling product directly to the general market. There are currently at least nine high-speed inkjet presses installed internally, fulfilling customer needs--and based on customer demand, there are more to come. “This is consistent with our mantra of ‘we buy when we can, and build when we have to’, she says. “HP brings a tremendous amount to the table in terms of imaging technology and materials knowledge, and we bring expertise in integration and understanding customers' needs. It is a perfect combination.”

The first joint initiative, anticipated to come to market as an HP product, is MICR capability for the T300 HP web press.

When asked if she could divulge any of the financial details, Schneider declined, but said, “It is safe to say that each of us will benefit from contributing intellectual property to the arrangement. Today it might be one thing we are doing for HP; tomorrow it might be two or three things they do for us. And we will decide together how HP brings it to market. It became a natural conversation to have. We are both going to benefit in several different ways through this technology alliance.”

When asked what impact this technology alliance would have on equipment installed within the RR Donnelley network, Schneider replied, “It is public knowledge that we have more than 1,000 digital printing units already installed throughout our network, from our own digital imaging units to all of the major players'. We will continue our strategy of understanding customer requirements and buying (or building) the necessary infrastructure to meet those requirements.”

This alliance brings to mind the early work RR Donnelley did with Creo in development of CTP, and Xeikon in the development of 4/c toner web presses.

Schneider summed it up by saying, “This is a terrific opportunity that enables us to benefit from the approximately $1 billion in R&D HP invests in, in addition to our own sizeable R&D efforts. This is a very different announcement than the normal trade show announcement where one company agrees to purchase equipment from another. It is much more far-reaching. We have chosen each other to jointly develop printing technology, and we intend to work together to revolutionize print.” If past history, including the Creo and Xeikon story, is any indicator, this team will indeed accomplish that objective.

Schneider was not at liberty to disclose other developments in the pipeline, but she did say that the pipeline is robust, both for RR Donnelley proprietary projects as well as for joint projects with HP.

Over the next few days, WhatTheyThink will be speaking with HP executives to gain more insight as well as talking to exhibitors and attendees at Print 09 to get their take, so stay tuned for more.