Techaisle Blog

Xerox, synonymous with photocopying, has embarked on a bold transformation to remain relevant in the digital age. From its humble beginnings as a copier manufacturer to its status as a diversified technology services company, Xerox's journey is a testament to its resilience and adaptability. Groundbreaking innovations punctuate Xerox's history. The introduction of the plain paper copier in the 1950s revolutionized document reproduction, and the company's subsequent development of the graphical user interface (GUI) and computer mouse laid the foundation for modern computing. The laser printer, another Xerox invention, further cemented its position as a technology pioneer. However, the rise of digital technology and the decline of traditional printing posed significant challenges to the company.  Xerox began a strategic shift towards IT Services with the 2010 acquisition of Affiliated Computer Services (ACS), rebranded as “Conduent” and spun off as a separate business services division in 2016.  The COVID-19 pandemic accelerated the shift towards remote work and digital document management.  While Xerox saw a decline in traditional office printing, it also identified new opportunities in emerging segments, demonstrating its agility and forward-thinking approach, which should give us all optimism about its future. 

It was my great pleasure to speak with John G. Bruno, Xerox's President and Chief Operating Officer. The conversation covered a broad array of subjects, focusing on Xerox's strategy for Reinvention. 

The traditional office environment has undergone a seismic shift with the rise of remote and hybrid work models. Once synonymous with physical document management, Xerox is adapting to this new reality by strategically balancing the preservation of its core print business with a bold venture into Digital Services and IT Services. While print remains a critical component of Xerox's operations, the company recognizes the growing demand for digital tools. It is investing heavily in technologies that can extract value from documents in a digital format. 

Xerox's foray into digital services is driven by the understanding that information is increasingly digitized. The company is developing services to capture, process, and analyze content from various sources, including physical documents. By doing so, Xerox aims to position itself as a trusted partner for businesses seeking to optimize their document workflows and extract valuable insights from their data. 

Furthermore, Xerox is expanding its service offerings to include IT services, particularly for small and medium-sized businesses. By providing a comprehensive suite of IT services, including managed security and cloud solutions, Xerox is addressing the growing technology needs of this market segment. This strategic move diversifies the company's revenue streams and strengthens client relationships. In essence, Xerox is evolving from a hardware-centric company to a technology-driven organization that empowers businesses to navigate the digital landscape. 

The company's Reinvention strategy is threefold. This three-pronged approach demonstrates Xerox's commitment to preserving its core print business, simplifying its operations to improve the client and employee experience, and capitalizing on the opportunities presented by the digital revolution. 

1. Strengthening the Core Print Business:

Xerox aims to maintain its leadership in the print industry by focusing on efficiency and productivity, reducing costs, and capturing growing segments like home office printing and production print. Despite the rise of digital platforms, print remains a significant market, and Xerox is determined to solidify its position as a leader in this space. As remote work and hybrid work models become the norm, the demand for home printers is expected to rise. Xerox is positioning itself to capitalize on this trend by offering high-quality, user-friendly printers to address the evolving needs of hybrid workers.   On the other end of the spectrum, Xerox also focuses on production print. This segment caters to businesses with high-volume printing needs, such as publishing houses, advertising agencies, and direct mail companies. Xerox aims to increase its market share in this lucrative sector by investing in advanced printing technologies and workflow solutions. 

2. Driving Efficiency and Growth through Global Business Services:

A key component of the Xerox Reinvention is the formation of a new Global Business Services organization. By centralizing internal processes and leveraging shared capabilities, Xerox aims to simplify operations, reduce costs, and improve the overall client and employee experience. This, in turn, frees up resources for investment in growth areas, such as emerging technologies and digital services. As Xerox continues to evolve, the Global Business Services organization will play a pivotal role in ensuring the company's long-term success. 

3. Expanding into Digital Services and IT Services:

Recognizing the digital transformation, Xerox is investing heavily in digital services, including intelligent document processing, content management, and data capture. The company also sees significant potential in IT services, particularly for small and medium-sized businesses. Recognizing the inevitable shift towards digitalization, Xerox is increasingly investing in digital services. At the heart of this strategy is intelligent document processing, which involves extracting valuable information from physical and digital documents. This technology is crucial for businesses looking to automate workflows, improve efficiency, and gain insights from their data. In addition to document processing, Xerox is focusing on customer engagement services, whereby Xerox helps companies utilize proprietary content to more effectively target and communicate with their customers, even designing and implementing omnichannel marketing campaigns. Xerox entered the IT services market to expand its digital footprint, particularly targeting small and medium-sized businesses (SMBs). By offering a range of IT services, including managed security, cloud solutions, and technical support, Xerox aims to become a one-stop shop for SMBs' technology needs. 

Once confined to the realm of science fiction, intelligent machines and artificial intelligence are now rapidly reshaping our world. AI streamlines tasks and boosts efficiency across industries, from personal productivity to complex professional operations. The boundary between imagination and reality blurs further as technology advances, with AI-powered devices becoming increasingly accessible.

AI PCs have emerged as the latest technological sensation, generating significant excitement in the industry. The prevailing narrative suggests that AI capabilities will soon become a standard feature in higher-end personal computers. HP, a long-standing leader in the PC market, is not just a participant but one of the driving forces. It recognizes the immense potential of AI PCs, particularly for running generative AI applications. These applications offer a compelling alternative to cloud-based solutions, boasting faster processing speeds, enhanced security and privacy protections, and lower implementation costs.

HP's commitment to AI extends beyond hardware. To ensure widespread adoption, the company is investing in comprehensive training programs for its partners and sales teams through role-based training programs. Additionally, platforms like the HP Workforce Experience Platform (HP WEX) are being developed to optimize the user experience and unlock the full potential of AI PCs.

HP’s AI PC Innovations: Leading the Charge

A shift towards AI PCs is at the heart of HP’s innovations. While AI in PCs isn't new—having AI-powered features like speech and face recognition, natural language processing, and predictive text—the rise of large language models and generative AI has changed the market. With advanced neural processing units (NPUs) combined with powerful CPUs and GPUs, AI PCs can handle even the most complex and resource-intensive tasks. These intelligent machines go beyond traditional computing, collaborating seamlessly to boost productivity across various industries. The essential advantage of AI PCs lies in their ability to run AI applications directly on the device, offering significant benefits: faster processing, lower costs, and enhanced privacy and security.

HP made its first foray into the AI PC market with the AI PC portfolio announced at the company’s 2024 Amplify Partner Conference (APC). It introduced HP Elite and Z HP PCs with Intel Core Ultra 5 and 7 processors or next-gen AMD Ryzen PRO processors. However, the announcements made in May propelled them into direct competition with its rivals. The company introduced the HP OmniBook X AI PC and HP EliteBook Ultra AI PC. These PCs, dubbed HP's first next-generation AI PCs, are built from the ground up with the latest ARM architecture and are designed and engineered around the Snapdragon X Elite processor, featuring a dedicated NPU capable of 45 trillion operations per second (TOPS). HP touted these devices as the world’s thinnest next-gen AI PCs at APC.

The Lenovo ThinkBook 13x Gen 4, launched at CES 2024, is a highly anticipated device that lives up to the hype. This ultra-portable notebook is a testament to the advancements in AI PC technology and showcases Intel's new Meteor Lake Ultra 9H processor and an AI-specific NPU. It offers a compelling package for SMBs, with its unique selling points being its sophisticated design, dual-toned top cover, ultralight portability, the world’s first 13-inch laptop with a 74-WHr battery, and a nice balance between power and style.

My first encounter with the Thinkbook brand was with a Thinkbook Plus Gen 1 in November 2019. The notebook's 'Think' pedigree, focus on the SMB segment, and the unexpected E-Ink screen on the lid piqued my interest. It was an intriguing design. Fast forward to September 2022, and the innovation difference between the Gen 1 and Gen 3 was nothing short of exponential. The ultrawide display on a laptop made multitasking more accessible and allowed users to see more content with fewer distractions. The massive and roomy display is a visual treat, a productivity enhancer, and ideal for Windows 11 snap layout. Straddling the line between business, work, and life, ThinkBook Plus Gen 3 boasted Dolby Vision for lifelike images, blue light reduction, and 2 X 2W Harman Kardon audio for superior sound.

My latest experience with a Thinkbook incarnation, the ThinkBook 13x Gen 4, is a testament to the brand's commitment to mobility. The ThinkBook 13x Gen 4 notebook model I am using features a 13.5-inch, 2.8K HDR400 display with Dolby Vision, making for smooth and vibrant visuals, Anti-Glare, Non-Touch, 500 nits. It also has EyeSafe low blue light certification, ensuring a comfortable and productive user experience. On the audio side, it includes four Harman Kardon speakers with built-in smart amplifiers and Dolby Atmos certification for immersive sound.

Weighing just 2.56 lbs and measuring a mere 0.5 inches thick, the ThinkBook 13x Gen 4 is designed for easy portability. Its thin profile is not a compromise on durability - the ThinkBook 13x Gen 4 is built to endure the bumps and knocks of everyday travel, instilling a sense of reliability and trust. Its aluminum finish and tastefully designed logo give it a look of sophistication that belies its price. The laptop's design ensures it sits comfortably on the lap without feeling top-heavy, making it an ideal companion for flights, daily commutes, or working on a couch in a work-at-home setting. The Lenovo ThinkBook 13x Gen 4 is great for mobile professionals seeking a sleek and portable laptop and users who appreciate a high-quality build. Its combination of performance, portability, and premium design make it a top choice for a wide range of users. It has a Copilot key, which provides the ability to quickly and easily access Microsoft's Copilot AI assistant directly from the laptop's keyboard.

A new type of computer is gaining traction: the Artificial Intelligence-powered PC, or AI PC for short.  At Microsoft Build 2024, Microsoft and its leading PC partners, Dell, HP, and Lenovo, unveiled a new class of laptops, Copilot+ PCs, explicitly built for artificial intelligence (AI).  These laptops are powered by powerful Snapdragon® X Plus processors, exceeding 40 trillion operations per second (TOPS), and deliver long-lasting battery life and access to cutting-edge AI models. 

The personal computer market is undergoing a significant shift, and small and medium-sized businesses (SMBs) and upper midmarket companies are paying close attention.  A recent study by Techaisle, covering 1410 SMBs and Midmarket firms in the US, suggests a potential surge in demand for these innovative machines within these business sectors. 

High Awareness Paves the Way for Adoption

The study reveals a high level of awareness and purchase intention among SMBs and midmarket firms, painting a promising picture of the market potential of AI PCs. A significant 77% of SMBs and an impressive 86% of upper midmarket firms are already familiar with AI PCs, demonstrating a high level of awareness and understanding of the potential benefits of AI technology for their productivity and operations. This awareness is not just passive, as the study reveals that a substantial 32% of SMBs and a much higher 64% of midmarket firms are actively planning to purchase AI PCs, indicating a strong market potential and the confidence these businesses have in the technology. This robust purchase intention signals a significant market shift and underscores the potential for widespread adoption in the near future. Moreover, 40% of SMBs are considering evaluating AI PCs before making a purchase decision, hinting at the possibility of even broader adoption in the coming years.

AI PCs are projected to dent the PC market within 3-5 years substantially. SMBs, known for their agility in responding to market trends, will likely mirror this trend. With 54% of SMBs planning to invest in new PCs in the next 12 months, AI PCs could become a decisive factor in purchasing decisions.

The study also uncovers some intriguing insights into SMB priorities. While 14% of SMBs view AI PCs as a crucial upgrade, and another 12% are considering a strategic shift towards them, a substantial portion (24%) see no compelling reason to adopt this new technology. However, 58% of SMBs report that their employees are actively requesting AI PCs. This highlights a potential disparity between management and employees regarding the perceived benefits of AI technology, suggesting the need for better communication and alignment.

The study identifies potential early adopters of AI PCs within the employee base. These are the content creators, tech-savvy departments, and executives in corner offices. Creative and design professionals top the list (45%), followed by IT development (27%) and sales and marketing teams (26%). These departments will likely benefit most from AI PCs' enhanced processing power and AI-powered features.

Copilot Gains Traction, But Snapdragon Faces Recognition Hurdle

The Techaisle study delves deeper, exploring the potential for Copilot, a new software solution designed to unlock the true power of AI PCs. Awareness is high, with over half (54%) of SMBs and a staggering majority (89%) of upper midmarket firms recognizing the name.  Despite its recent launch, nearly half of these businesses already know about Copilot+ PCs.

However, adoption intent dips regarding Copilot+ PCs powered by Qualcomm's Snapdragon processors. This hesitation stems from a few key factors. Limited brand awareness compared to the established giant Intel is a significant hurdle. Concerns about compatibility with existing applications and potential issues with peripherals further dampen enthusiasm. Many SMBs are adopting a wait-and-see approach, holding out for the announcement of Intel-based Copilot+ PCs, hoping these systems will offer similar features and impressive battery life.

Despite the growing hype around AI PCs, the study reveals some interesting realities regarding PC selection criteria for SMBs. While GPU/NPU might be a consideration, it does not reign supreme. For SMBs, the top five priorities when choosing a PC remain long battery life, a processor with built-in security features, ample storage capacity, a high-resolution display, and biometric login options.