Ok, want to start a discussion about Aligning yourself with a single vendor...

What are peoples opinions, success or failures doing so?

Is it better to put your eggs in one basket or try to piece together best in class options?

What do you think?

Does loyalty pay off? Do you get better deals or additional offerings not available to those that have competive gear?

Feel free to share your thoughts beyond digital print too.

So personally, I like the idea of being loyal to a specific vendor, but the problem with that is that it can lead to a situation to where the vendor owns you. They will start to take advantage. So you need to be careful. One of the most important things that you can do for the long term success of your company is to keep your equpment options open.
The problem in the digital realm is that this is very difficult at this time to be neutral. If you are a Xerox digital shop, it is difficult to pretend to the rep that you might get an Indigo as your 3rd or 4th digital press. Trust me, when a rep is talking with their managers on a potential deal, they definitely consider the odds of your going with something else when they discuss your deal.
It will be a lot better when there is more competition out there (look for Canon soon I hope) in order to keep all the vendors as honest as possible.
The lopsided buseinss model in digital printing right now is that either Xerox, HP or Kodak actually have no risk and all upside as we our here try to make a living. Even in the old days, when you purchased a large expensive offset press, your business model allowed you to eventually own the press and drive your cost of printing to something just slightly over the price of the paper. But in the digital model we, as the business owners, will continue to pay Xerox, HP and Kodak literally forever, regardless of the market situation, or competitive disadvantage. Even if you ever do get to the end of a digital press lease, you still will owe the flat click charge. That part of this entire model is the most significant difference from the traditional printing business model.
So I think that this means that it is riskier to be vendor loyal. Unlike in the past, you were either a Kamori, or a Heidleberg shop. It meant for friendly rivalries with the cross town shop. But there is risk now, if you choose Xerox, and you purchase 2 Igens, and you find that you don't get the really long run varable data work because your region just simply doesn't support it, you might find yourself in a bad situation if you compete with someone in your region that can do short run quality color very inexpensively. The KBA 52 UV is a great example of this risk.

Well, you mention leasing, and that is one of the most dangerous aspects of digital print, probably for another day.

Leasing from a manufacturer had its benefits, but today, they all sell the note to someone like GE Capital which means they could care less if the machine isn't running, you still owe the monthly payment.

Seeking bank financing is a far better deal, or find investors willing to line up behind your vision of digital print. Find customers willing to enter contractual printing to secure the applications and margin needed to pay for the equipment.

Also, know the click costs. HP and Xerox are the only ones with click costs, and they are deadly if you don't understand them. Kodak has a capped cost which can be used similar to a click, but ultimately you are paying before you use the supplies and parts, whereas the others you are paying as you use the clicks. Also, be wary of minimums in your contract. Xerox has a minimum of 100,000 clicks in their contract, which is the equivalent of 200,000 2 up letter sides. So be careful, do the math and make sure you understand the value proposition of each vendor. Also, read the contract carefully, Xerox, for example can raise your base service and click charges by up to 10% each year. That compounds tremendously, even if it is only 5% each year. You have to budget for that as well.

Personally, I think vendor alligences are good as long as it is a two way street. When one vendor is not providing you what you need, you do need to look elsewhere. Competition is healthy, but the technology leapfrogs each vendor so it is important to stay on top of the industry and insure you are investing that dollar wisely. Also, I would never, ever lease a digital press from a vendor. Own it from day one, or financing through a bank will yield far better interest rates. Do you really want to pay 5-15% more for a device over 5 years? That could be your margin in 3 years or sooner as this technology continues to change and prices are going down.

Venders are always a challenge and a risk; however, if both parties work towards a good partnership, a single vender alliance can be a good thing.

I think in digital it is more critical than it has ever been with offset print. The technical dificulties, capacity and need for redundancy requires digital printers to acquire multiple compatible devices from a single manufacturer. The skill set to operate and technical capabilities of the Indigo vs. the Nexpress vs. the Igen are so different it is not usually feasible to mix devices until the 3rd or 4th device.

There is no denying that there are benefits of having multiple devices from multiple venders; however, do not jump into it too quickly.

Also a good vender to partner with and be loyal to will understand the limitations of the there own product and help you address the weaknesses of there product. Sometimes that may require accomplishing some niche work on another type of device; however, a good partner will feel comfortable with there position in your operation and embrace your overall success.

As Patrick mentioned, be very sure to understand the terms of your agreements and the cost structure that accompanies any purchase.