HP drives home Ford printing deal

As previously reported, HP will replace rival Xerox as Ford's printing and imaging services provider. The Palo Alto, Calif.-based computing giant did not report financial terms of the deal, but company representatives assert that the pact represents HP's largest win ever in printing. HP said Ford is already in the early stages of building its new imaging and printing network.

HP has been working hard to expand its printing and imaging services business, as part of an effort to create further growth in its printer unit, which accounts for the bulk of the HP's profits.

In addition to doubling the division's staff over the last year, HP has claimed more than $650 million in new printing business over the last six months.

Ann Livermore, HP's services chief, asserts that companies can create significant savings and performance improvements by managing printing with the same fervor they use to administer computing overall. HP executives estimate that the total market for such services will reach $17.5 billion over the next three years.

"More and more companies like Ford are evaluating their entire imaging and output infrastructure to simultaneously drive down costs while increasing efficiencies and worker productivity in their businesses," IDC analyst Angele Boyd said in a statement. "This is one of the largest deals of its kind and validates HP's offering."

CNET News.com's Ina Fried contributed to this report.