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THE YEAR AHEAD: MURATEC

 

February 11, 2008 – Muratec’s Lou Stricklin discussed the company’s plans for its first color MFPs, the planned launch of an open architecture software platform, as well as the increasing competition in the MFP market from printer-based manufacturers as part of our continuing series on the year ahead.

 

Muratec has come a long way from its fax-based manufacturing roots, adding copiers and monochrome MFPs over the last few years. Now, according to Lou Stricklin, marketing manager at Muratec, one of the biggest goals for the company is the introduction of its first color MFPs. The first two devices in Segments 1 and 2 will be developed by another manufacturer. According to Stricklin, the units will be positioned in the copier space because Muratec intends to offer aggressive cost-per-copy pricing and service. The devices should be available early in the second quarter.

 

The third product, with a maximum A3 (11" x 17") paper size, will be Muratec-manufactured and scheduled for release in late summer. A fourth product may be announced in the second half of the year. The four units will have tandem engines, so the monochrome and color speeds will be almost identical.

           

The second big goal for 2008 is the launch of an open architecture software platform. Stricklin explained that the platform, which is a Muratec-manufactured firmware update, will for the first time allow users to use a Muratec MFP to capture metadata from a scanned document and then send that data to a document management solution, such as DocuWare or Documentum. The firmware will be made available for the MFX-1450 and MFX-2050 MFPs, which offer speeds of 14 ppm and 20 ppm, respectively. “Since Muratec’s niche has always been low-end segment models, we always try to produce innovative features that separate us from the competition. The launch of the open platform is a first for Muratec and we expect our MFP customers who are using document management solutions to greatly benefit from this feature,” said Stricklin. 

             

Stricklin explained that there are two big challenges for Muratec in 2008. The first is the increasing competition from traditional printer-based manufacturers such as HP and Lexmark. “We see the same competition the dealer channel sees. The HPs of the world are entering the MFP space so we have to continue to make strides in producing reliable, easy-to-use products that offer aggressive supplies and cost-per-page pricing.”

           

Stricklin noted that one of Muratec’s limitations is that it is not a full-line manufacturer. “As a result of our ‘low-end niche,’ we have to continually show value to dealers and make them realize that they should do business with Muratec because we are an easy company to work with.” While the company has no plans, at least for 2008 and 2009, to manufacture MFP products beyond Segment 2, because most of the major manufacturers concentrate on the higher-speed segments, Muratec enjoys a strong market share in Segments 1 and 2, Stricklin said.

              

The second challenge Muratec faces in 2008 is the eroding fax-centric multifunction market. But this may be a blessing in disguise according to Stricklin, because as the fax-centric market is losing customers most of the primary manufacturers are no longer making fax-centric devices and Muratec is picking up some of this business. In fact, the government sales team at Muratec still receives many bids from state and federal governments for fax-centric devices. Muratec is also adding enhancements to the new F-525 and F-565 fax units, which are replacing the F-520 and F-560, respectively. “Muratec has built fax units with enhancements to be more than just analog devices. In addition, all of our fax units are network ready out of the box,” said Stricklin. The new e-mail gateway feature enables the fax unit to connect to a fax server application such as Captaris’ RightFax or LightningFAX; address book locations have increased from 300 to 1,000; Secure Print restricts documents from being printed until a user enters a PIN code at the device; and the print on demand feature allows users to print a document from a network folder from the device. 

           

While some of the primary manufacturers are establishing IT reseller channels, Muratec has no intention of establishing one in 2008. Stricklin said that all of Muratec’s distribution is via the Business Technology Association (BTA) channel. At one point, Muratec sold its products through retail stores and VARs, but as retail sales declined due to competition from Brother along with retail stores selling “very good equipment,” Muratec dropped out of retail and joined the BTA. “The BTA channel has been a very nice fit for Muratec. Unlike selling in retail, no advertising is required, and taking calls from dealer sales teams is less cumbersome than taking retail calls.” Stricklin noted, however, that a number of Muratec dealers see more opportunity to sell MFPs in conjunction with software and solutions, so some may establish relationships with IT resellers who provide such capabilities.

 

©2010 Buyers Laboratory Inc.