Xerox makes managed services move

By admin, September 28, 2009 12:46 pm

Not to be outdone by Dell and HP, Xerox too has decided to build its portfolio of managed services options with an outside acquisition. The company announced today its plans to purchase Affiliated Computer Services for $6.4 billion in a deal projected to triple the company's services revenue over the next year.

Xerox has always had one foot in the information technology business but despite some significant advantages has never managed to break out of the printer/copier business. Although that expertise has been parlayed into a successful stake in the burgeoning document management business, Xerox continues to flail about at the edges of real IT services. The ACS acquisition may allow Xerox to buy a place at the table with Dell and HP for stakes in the managed services game. Unlike those companies, however, and in contrast to some boneheaded moves Xerox has made in the technology market in the past, it does not appear to be rushing to integrate ACS into the main business. ACS will keep its name and CEO, and presumably continue business as usual with customers (although no doubt pitching Xerox hardware and services a bit harder than before).

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