Diebold 2006 Annual Report

One of the most important trends in financial self-service is that many financial institutions - large and small - want to focus on banking, not on managing their ATM self-service networks. This creates a lot of opportunity for us to move up the value-chain, from basic maintenance and remote monitoring to managed services to integrated services. Today, nearly half of our total revenue comes from services.

We've had a lot of success with managed and integrated services in Latin America, and we plan to leverage this expertise in other markets. In Brazil, we currently manage a network of more than 13,000 ATMs at approximately 2,650 sites. Customers lease the hardware and software from us and contract for professional and maintenance services. In the United States, we've also gained some traction in this area, with some banks outsourcing network monitoring and transaction processing to us.

To capture the opportunity, we're constantly adding to our capabilities, developing new service offerings and packages, and customizing them to meet customers' needs. We're also expanding by acquiring new capabilities that broaden and deepen our offerings. The acquisition of Eras in 2006 is one example; it strengthens our payment processing and document imaging capabilities and is currently doing complete outsourcing for more than 50 customers.