Xerox Expands Services Portfolio with AI-Powered ITaaS for SMBs
Event summary
- Xerox launched Xerox IT as a Service (ITaaS), an AI-powered platform built on ServiceNow.
- The platform integrates managed services, automation, procurement, and real-time intelligence into a single IT operating system.
- Xerox ITaaS is initially available in the United States, with global expansion planned for 2026.
- In 2025, Xerox acquired Lexmark, expanding its global footprint and service capabilities.
The big picture
Xerox's shift towards a services-led, AI-enabled platform provider represents a strategic pivot away from traditional hardware sales. The launch of Xerox ITaaS aims to capitalize on the growing demand for enterprise-grade IT capabilities within the SMB and mid-market segments, which often lack the resources to build these solutions in-house. The partnership with ServiceNow underscores the increasing reliance on third-party platforms to deliver complex IT services.
What we're watching
- Market Adoption
- The success of Xerox ITaaS hinges on SMB adoption rates, which will be influenced by pricing, ease of integration, and perceived value compared to existing solutions.
- ServiceNow Dependency
- Xerox's reliance on the ServiceNow platform creates a dependency that could limit flexibility and expose the company to pricing or platform changes.
- Competitive Response
- Other IT services providers will likely respond to Xerox’s entry into the SMB ITaaS market, potentially intensifying competition and putting pressure on pricing and margins.
Related topics