The EDP Interview: HP

The European Digital Press Association (EDP) was established in 2006 by seven of Europe's leading digital print magazines, Image Reports being the UK member. Its goal is to act as an industry forum and to acknowledge and award the latest developments in R&D in the digital print industry (via its annual awards scheme).

To bring readers up to speed with the developments and strategies of the leading suppliers in the industry, the EDP intends to conduct a number of interviews over the coming months. In this first interview, with HP, EDP journalists put questions to Santiago Morera, vice president and general manager of Designjet Large Format Printing Solutions, and Yariv Avisar, vice president and general manager of Large Format Printing Industrial Solutions (including HP Scitex products)

Q: Will the HP latex ink system be developed for all large-format printers, and in what timeframe?
A: In the next two or three years we will see an important growth of latex. Until now we have applied latex technology to two products [L65500 and L25500] but I think latex has many other possibilities - different working sizes, different printing speeds. In the next months we will introduce new products based on latex.

Q: Will HP be introducing a 3.2m version of its latex printing technology?
A: We know that the 3.2m is very interesting for some segments. We realise the requirements and want to respond to them - it's very important to work with textiles, to work faster. I can say that we are working in these two directions.
 
Q: HP has two different approaches to technologies: proprietary development and OEM agreements. Normally when HP invests in proprietary technologies these platforms are shared on a huge basis of products and become market leaders. What are your expectations for the diffusion of latex inks and printheads on a larger number of printers? And what's happening with X2 printheads? Which kind of future products will be equipped with X2?
A: In the latex technology we are using thermal inkjet printheads and this will reflect in the market. HP is testing it in many models. Regarding the X2 printheads, we are working with a UV and X2 printhead today with the HP Scitex FB7500 printers and plan to do so in the next introduction as well.


Q: HP has made a major step in green print production with the latex technology and the new material pick up service. What do you expect for the future in the green printing market?
A: The whole green concept is very attractive to us as long as it is not related to a premium. Take latex - the majority of sales of the L65500 come from its versatility and ease of use. Users buy the machine for these characteristics and for the high quality printing results, not for it being green. It happens, though, that it also reduces the impact of printing on the environment. Users differentiate themselves from most competitors using solvent-based machines. At the other end, if we look at the very big corporations from some countries, we find that they are starting to request green printing solutions. What is great about latex is that we can offer both possibilities at the same price.


Q: In what market segments do you think latex technology has more possibilities to expand? What are your market expectations for the new HP Designjet L25500?
A: There are applications, such as car wrapping, where latex has been a huge success - the print comes out dry from the machine so you don't need any waiting time: you can laminate right after. The same is true for interior decoration: you can put an odourless print in an interior space. Users can serve customers faster.
We are very happy with the acceptance of latex. We don't base the success on the number of units sold - we measure how many square meters are being printed and when we see that our customers are printing more month after month, it means that the technology is good. Some applications are moving from solvent or low-solvent to latex.


Q: Do you think your competitors might attempt to copy your technology?
A: I think we are raising the bar in many markets with our innovation so I don't have any doubt that competition will try to find ways to try to match it. I enjoy the leadership in the market but I think competition will catch up with something similar or in other areas. If competition comes up with something close to it, we will be in the next level. The key to success is understanding costumer needs. Companies like HP will drive innovation and take a bigger market share.


Q: Latex printers run similar applications to HP's current low-solvent line. HP has finished the OEM-agreement with Seiko Infotech. Does it mean that HP will end its low-solvent line of printers?
A: HP is exiting the low-solvent market for commercial space. Our purpose is to focus on latex. On the other hand Seiko OEM agreement is coming to an end and we will set a new agreement on the low-solvent side.


Q: Due to the recent financial crisis many digital print shops are starting to invest in low-cost machinery from Asia. How will HP overcome this challenge and/or competition?
A: Even when the market slows down, if you come out with a technical innovation, you help customers to differentiate themselves. Latex-based printers are high-end but inexpensive machines.


Q: Now that nearly two years have passed since the acquisition of Nur Macroprinters, how successful has the integration of the product lines been? Do you feel the right decisions were made regarding which machines to continue and which to remove from the HP Scitex portfolio??
A: In our portfolio we have the ex-Scitex, ex-Nur and ex-Colorspan, together with the latex products we mentioned before. These incorporations to the HP portfolio came in the right moment and have increased our market share. We find it was a great decision.


Q: The HP Scitex FB6100 has been a good machine but is now being superseded by printers which offer a straight-through material feed and a roll-fed option, which gives a full 3.2m width. Although the company has its XP models, these are more geared to fast throughput of flexible media, so are there plans forthcoming to replace the current mid-range flatbed solution?
A:  A part of our commitment is not only to the ongoing development and introduction of innovative product solutions, but also to protecting a customer's original investment. The HP Scitex FB6100 printer is a good example of this. While HP continues to develop the quality and performance of the product (including a new white ink system) we designed them in such a way that upgrades could easily be made to existing systems.


Q: FB7500 is a new platform that doesn't necessarily replace the FB6700. Are you planning to continue the development of Aprion water-based technology together with UV-curable?
A: We are very close to the market and are aware of its needs. The HP Scitex FB7500 printer offers productivity, reliability, time saving and UV inks while the HP Scitex FB6700 printer is focused on water-based inks and is ideal for displays. Most costumers need both printers for volume. We listen to customers so we will keep selling them together.


Q: HP puts heavy emphasis on environmentally friendly printing but has a substantial installed base of printers equipped with solvent inks. Will HP continue to develop new solvent-based inks that comply with stringent environmental conditions?
A: We have many customers around the world that are still using solvent ink printers and HP has the commitment to keep selling them and providing them with service. The situation may change over time.


Q: In the aqueous-based market, why has HP still failed to replace the Designjet 90 as a (A2+) option? This printer size is the most popular for both Epson and Canon in the photography sector?
A: We are focusing on the aqueous and water-based high-quality photo in bigger sizes, especially 42inches, 60 inches and so on. A2+ remains a nice opportunity but we don't think this market is growing a lot.


Q: How is HP moving forward with true variable data in its wide-format printing options? Rip manufacturers are now introducing the latest Adobe PDF print engine into their products, so will HP be working with these companies so that customers can benefit from improved workflow, native transparency and VDP?
A: VDP or versioning is definitely an increasing trend. IN 2009 at SGIA, we demonstrated the compatibility of our HP SmartStream Designer application with our large-format portfolio. We showed how PSPs can now use this solution with Adobe InDesign CS4, to cost effectively produce VDP based large-format campaigns. In addition to this, HP is also working with most major Rip vendors to make its solutions compatible with HP large-format products.


Q: What is your outlook and expectations for 2010? 
A: All in all, we are very optimistic regarding 2010. The crisis has even accelerated the trend towards digital. With 15,000 dollars customers can buy a solvent machine. Those who are in a stronger economic position can find whatever they need in HP - water-based, latex, UV, solvent products. Customers significantly appreciate HP financial services and we try to give them even better services in hard times.