GIS sure is expanding fast, so I can see where these rumors come from, but I dont see GIS becoming Xerox's only MFP sales arm. GIS is too independent and does not have the international coverage to support Xerox's international clients.
Xerox will continue to sell MFPs directly to the largest companies, but it will be a "solutions-led" sales strategy. They will continue to sell production directly too.
I could see Xerox relinquish mid-market accounts to the channel and/or agents. The margin on mid-market accounts is about 12% lower when vendors sell directly vs. through partners. This is the reason HP gave most of its smaller MPS accounts to channel partners in Europe a few years back. Global and its largest agents and dealers will handle the bulk of Xerox's mid-market business. XPPS will allow channel partners to better address the mid-market.
Xerox will exclusively sell to SMBs through Global, resellers, and agents.
I agree with GMAN that Global is positioned to make the bulk of Xerox SMB sales.. Consider this, three or four of the highest volume Sharp dealers are GIS companies. These guys can sell!