This Month's Spectrum Summary:

(The following is an excerpt from the December 2006 issue of Spectrum, a proprietary monthly briefing published exclusively for the clients of I.T. Strategies, Inc. © 2006)

2006 RECAP Realism, Technology Migration, Devaluation; Creative New Directions Become Clear

Reality, like beauty, is in the eyes of the beholder. For our year-end recap, we have four beholders sitting down with us today: Liz Ziepniewski, Marco Boer, Mark Hanley and Patti Williams. What are the common threads running through today's dialogue? A number of topics stand out.

-One is that this year did not yield industry-changing, blockbuster developments, although some are seen as significant in that they illuminate significant new directions as to where the industry is headed. It's been a year of realism rather than exciting growth.

-Company responses to maturing markets include growth by acquisition, but with the precaution, according to one opinion, that there don't seem to be any good acquisitions left.

-Another response is that with the beginnings of interest by major vendors in industrial and other specialized applications, these being the markets that will always require printing.

-Marketing is further evolving toward services, consulting and solutions rather than simply pushing hardware. And the service sell is now beginning to migrate down into the broader base of the printer market.

-UV-curable inks, roll-to-roll and flatbed products have expanded applications and made 2006 "the year of the wide format print shop."

-It's been a year when we can more seriously envision the document market drying up. No longer asking if this is possible. Rather, when?

-Users are seen leading vendors in terms of system upgrades or diversification, rather than vice versa. This is especially evident in the case of industrial applications. 2006 marks the beginning of a creative period of great significance for users.

-Inkjet thanks to fixed array and other developments, has begun to make serious inroads into applications currently dominated by electrophotography (EP). On the other hand Xerox still retains strong user trust and has launched its new high-end Nuvera printers. Canon's new UCP-7000 also seen as an expression of confidence in the future of document printing. And low cost ($200) color laser printers have arrived.

-On the other hand, two major vendors have abandoned very low end products, Epson and KonicaMinolta.

-Consumer photo film seems to have more or less died, much quicker than anyone expected. But surprisingly, Kodak seems to be adapting, this year reporting its digital businesses have achieved profitability.