At the Xerox Western Europe Channel Forum which took place in Frankfurt 11-12 May, the company provided an update on the Lexmark integration process, set out its go-to-market strategy and priorities, and outlined growth opportunities for resellers across print, digital services, and workflow solutions. Michelle Ryder reports
At the Xerox Western Europe Channel Forum which took place in Frankfurt 11-12 May, the company provided an update on the Lexmark integration process, set out its go-to-market strategy and priorities, and outlined growth opportunities for resellers across print, digital services, and workflow solutions. Michelle Ryder reports
Xerox’s December 2024 announcement of its intention to acquire Lexmark prompted mixed reactions from the channel. Some said that the combined strengths of both organisations – Lexmark’s technology ownership and Xerox’s wider solutions portfolio would be a positive, while others thought that Lexmark would be absorbed into the larger Xerox organisation, and that its long-established, channel-centric heritage would be lost in the process.
From the outset, however, Xerox leaders were adamant that the integration would focus on combining the best of both companies. That strategy was reinforced in Frankfurt where Xerox demonstrated a clear commitment to positioning partners as its primary route to market. This was reflected in a new go-to-market strategy that places partners at the centre, supported by a broader portfolio spanning A3 and A4 devices, production print, workflow software and services.
Unified sales organisation
Xerox now has a unified sales organisation that merges direct engagement with a partner-first mind-set, designed to strengthen its competitive position across the combined Xerox–Lexmark portfolio, enabling greater consistency across routes to market while supporting profitable growth.
As reported in PrintIT Reseller Issue 139, Thomas Valjak has been appointed President of Channel Sales Western Europe and Danny Molhoek as President of Enterprise Sales Western Europe. The model unifies the Xerox– Lexmark sales structure and sharpens regional focus, positioning it to drive growth across enterprise, SMB and partner‑led segments.
A pivotal moment
Valjak opened the Channel Forum by describing it as a pivotal moment, bringing partners from both legacy organisations together for the first time.
He characterised the integration of two companies with rich heritage, as a journey, emphasising the significant opportunities for Xerox and its partners to grow together.
Valjak outlined Xerox’s five strategic plays: rebuilding its transactional model, expanding its footprint through partners, strengthening A3 leadership, differentiating through digital and IT solutions, and becoming the partners’ partner of choice.“There is opportunity to do more with partners,” he said, adding that the number one benefit of working with partners is that they extend Xerox’s reach and add capabilities beyond its own portfolio. “Our strategy is partner- centric and we are working toward indirect fulfilment being the default,” he stated.
He also addressed the challenges facing the market – customers scaling down fleets, renewing existing contracts, and navigating a commoditised hardware landscape with increasing price pressure. “Profits are under pressure and MIF churn remains high,” he said. “Staying the course is not a good strategy.”
Valjak confirmed that Xerox’s priorities centre on increasing print market share by keeping devices in the field longer, placing equipment with new customers, and delivering value through differentiation rather than price. He explained that the focus is on slowing MIF erosion and driving growth by extending contracts and warranties on existing fleets, prioritising new customer acquisition, and increasing attachment of services, software and solutions.
Targeting high value core markets
Molhoek emphasised the strategic importance of the named accounts division, clarifying that it is not a direct-only operation. He stressed that the division would only engage directly with customers where an existing arrangement already exists or where a customer explicitly requires a direct vendor relationship. All other opportunities, he said, will be pursued in collaboration with channel partners.
The named accounts division will focus on high value core markets. Its strategy centres on expanding, developing and closing sales opportunities with named enterprise customers, driving corporate and commercial sales through XBS, and partnering with SIs to extend Xerox’s capabilities and reach.
“The market is changing. We are targeting profitable customers who either print today or have mix-shift opportunities,” Molhoek explained. “Our go-to-market strategy is aimed at high value core markets, and we’re looking for customers who actually print – public sector, logistics services and retail, are all print-heavy environments.
“There is tremendous opportunity in the enterprise segment, and importantly, there’s no overlap between the two organisations,” he added.
Molhoek also pointed out that Lexmark historically secured its largest deals through partners. “I want to be your partner, and we can work together,” he said.
Partner feedback
I sat down with both Valjak and Molhoek at the event and we spoke about how, over the past several months, Valjak has been visiting partners from both legacy organisations, a move that reinforces Xerox’s commitment to a partner-first approach.
“Across all my visits and interactions, feedback has been extremely positive,” he said. “Partners appreciate the partner-first strategy, even in the named accounts space where we will only go direct where needed or where legacy dictates.”
There are of course a number of marked nuances around service delivery between legacy Lexmark BSD partners and Xerox concessionaires. BSD partners typically deliver their own service, while Xerox concessionaires and partners have historically relied on PagePack.
Valjak noted that Xerox concessionaires in particular, value the openness to dialogue around service delivery. “Some partners want the option to deliver service and supplies directly and they are interested in the BSD programme. For decades, many concessionaires could only resell Xerox equipment with PagePack, even if they had other lines of business and their own service capability. Now we’re giving them options so they understand what’s available.
“For those who prefer not to deliver their own service, we will continue with PagePack. It’s about offering choice. The partner landscape is diverse, some focus on production, others on office, some lead with solutions, others sell into public sector or logistics. Different customers have different needs, so we need different offerings and different ways for them to access the portfolio,” he added.
Options and opportunities
Valjak also acknowledged that partners are experiencing a high degree of change, pointing out that it’s not because Xerox is imposing it, but because they now have more options and opportunities than before.
“We have a full Xerox-branded portfolio. We have opened up the Lexmark-branded 9 Series devices to legacy Xerox partners, but as we refresh the portfolio, everything will transition to Xerox. The Lexmark brand will go away.
“Some still need to adjust to the idea that the 9 Series A3 devices carrying a Lexmark logo are, in fact, Xerox devices, because Xerox acquired Lexmark. It’s just a mind-set shift, but I don’t see that as a roadblock,” he explained.
Molhoek said: “You also have to look at the opportunities today. There are real opportunities now. “The organisation I now lead used to be seen as Xerox direct. But I’m not direct, I’m named accounts. We have a proven track record of working with partners, both together and individually, and my background includes winning some incredibly large opportunities in conjunction with partners.”
Bringing Lexmark and Xerox partners together at the event was intentional. “Every partner here can mingle, talk and understand how we work,” Molhoek said. “I see huge opportunity. In named accounts, customers who want to deal directly with the OEM will find that working with a Xerox concessionaire is effectively the same. There’s not much difference.
“Many Xerox partners have a large installed base, but the average MIF per customer is small. Historically, they handled the smaller opportunities, while Xerox direct handled the larger ones. Now, Xerox sees a bigger opportunity for partners. Some concessionaires are already in the process of landing significant opportunities and are becoming more comfortable with that shift,” he added.
Value of channel-led engagement
More than 60% of legacy Lexmark business went through partners, including in the enterprise space, demonstrating the value of channel-led engagement. It stands to reason that Xerox’s fresh partner-first approach will open doors for partners to access larger accounts they may not have been able to reach alone.
Molhoek said: “If a partner calls me on Monday and we decide to work together on an account; we will work together. And if the customer calls me and says they want to work direct, I will tell them no, I’m working with my partner. We have a track record of doing that. We’ve even stuck with partners in situations where the customer was unhappy because that’s our obligation to the channel. If you break that trust, partners never forget,” he said.
In conclusion, Valjak said: “Many partners are asking for change, but to be clear, I don’t want to force anyone to change how they do business. I want to show them options, give them pathways, and help them get better.”
