The announcement last weekof the joint venture between IBM Printing Systems division and Ricoh to form the InfoPrint Solutions Company quickly spawned a host of discussions, articles and interviews, with more to follow in the coming weeks as the deal actually closes and the new company comes to life. On Friday Noel Ward and Cary Sherburne talked with Jeff Paterra, VP of Development and Professional Services, IBM Print Systems Company to get some answers to some of the questions that are on a lot of people's minds as this shift in the industry takes shape.

WhatTheyThink also checked in with research firm InfoTrends to gain a snapshot of the market in which this new company will play.  Interestingly, according to the summary the firm provided, growth in the overall market for production copying and digital printing is slowing down. The firm projects placement growth rates in the period of 2005 to 2010 of 2%, with a 2% growth rate in annual impressions as well. Inside of that, data processing, which has historically been the key focus of IBM Printing Systems, is projected to have negative growth; black & white, another strong area for IBM, is projected to decline in placements and deliver flat numbers in annual impressions. The area of biggest growth is digital color, which should not surprise our readers.  In this segment, InfoTrends projects a 5% growth in placements and a 31% growth in annual impressions. IBM has lacked a clear color strategy, while Ricoh has been busy introducing more color devices to the market.  It will be interesting to see whether the new joint venture will be able to maintain its position in black & white while capitalizing on potential double digit growth in color in a crowded marketplace.

WTT: Ricoh has been working with IBM for some time, even before the Hitachi acquisition. Why do this deal now?

JP: IBM Printing Systems has had 20 year relationship and a great partnership with Ricoh. That tells us the match is right, and this is a natural evolution of that relationship. It's also a matter of focus--of all parties involved. Ricoh's focus is on becoming a worldwide leader in output solutions. And given the familiarity we have established with them and where they are moving, the timing is just right to extend that a big step further.