June 07, 2006HP Expands in Photo Markett could be a hard sell but Vyomesh "VJ" Joshi, executive vice president of Hewlett Packard's Imaging and Printing Group, is not easily deterred. Today HP announced a definitive agreement to acquire Silverwire, a Zug, Switzerland-based retail photofinishing software maker. Financial terms were not disclosed. Joshi Snaps Deal For Swiss Photo Software Maker New York - While the media, music and movie industries are racing to digitize their content and get it on-line, digital photography companies are trying to jumpstart a market for photo printing hardware. It could be a hard sell but Vyomesh "VJ" Joshi, executive vice president of Hewlett Packard's Imaging and Printing Group, is not easily deterred. Today HP announced a definitive agreement to acquire Silverwire, a Zug, Switzerland-based retail photofinishing software maker. Financial terms were not disclosed. Joshi, who leads the $26 billion imaging division, has been quick to capitalize on every potentially lucrative aspect of digital photography's new directions -- from manufacturing cameras and home printers to providing photo-sharing services through its Snapfish Web site. But Joshi hasn't been content to stop there. He's convinced the real money lies in a return to photofinishing -- at retail locations – which is an industry long dominated by very well-entrenched Eastman Kodak and Fuji Photo Film (See: "Photo Industry Sees Future In Printing"). According to technology analysis firm IDC Research, the number of digital prints is expected to rise 26% annually, to 152 billion from 60 billion by 2009. By the end of this decade, forecasts show digital print revenue could grow to $107 billion from $38 billion. And here's the doozy: It says more than half of those prints will be made in a retail location. Whether consumers will play along with those expectations remains to be seen. But back in February, Joshi boldly strode onto the retail printing scene, introducing both a self-service kiosk and a behind-the-counter minilab. Both offerings are designed to promote fancy printing options like calendars and picture books, not just 4X6 prints (See: "HP To Offer In-Store Photo Prints"). The Silverwire acquisition shows Joshi is putting his money where his mouth is. According to Silverwire's Web site, the software company provides 2,800 photofinishing businesses in 26 countries with photofinishing services, including the newest buzz-worthy applications--remote kiosk networking and advertising applications. At least the options are out there. But customers will have the final say-so. Related Article on Future of Photo Industry Posted by keefner at June 7, 2006 07:14 AM |