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Nov 18, 2009

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The dinosaur is the perspective that Xerox is just a print machine factory. Xerox has been developing their services perspective for 15 years, but as with any extremely large and diverse organization, many egos are required to become aligned for substantive change.
I thnk the major acquisition of ACS underscores just such a growing alignment within the Xerox management ranks.

Great perspectives. This particular combination perplexes me....Xerox product sales folks don't have CxO relationships and transitioning from moving print/copy to selling BPO to the CFO is a huge chasm.

"Tony" nailed it above - the transformation from a product to services company is incredibly difficult for sales people. The execution of a conjoined sales strategy will likely be difficult.

Congrats to Dana! Good to see her on Horses and especially good to see that the quality discussion on Horses continues!

While I agree somewhat with the skpetics, I personally give this one a decent chance of success.

Near term (first 18 months) synergies will be purely administrative. Medium term (18-36 months) synergies depends on whether Xerox's print salespeople have the executive connections and ethos to sell ACS' BPO capabilities and ACS' BPO salespeople can sell printers. Long term synergies depend on the capabilities of the offspring of these two dinosaurs. Frankly, the question is whether, after ACS's executives leave following change of control and other retention issues, if ACS's leadership can change Xerox's fate. After all, Xerox must change more than ACS...

Sounds like a classic Digital and Compaq culture clash.

Wish them both the best of luck because, independent of each other, both are better than the average dinosaur for some clients.

Most definitely dinosaurs huddling. Not sure if they're finding much warmth either,

Eric

The latter

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