The Reds had a reasonable argument at being competitive in the NL Central last season (ZiPS had them tied with Brewers, just ahead of Cardinals), but the starting pitching pretty much abandoned the team, with the exception of Johnny Cueto. The addition of Mat Latos obviously improves the rotation, but the team has a bit less depth now and there are less emergency options in the rotation with Travis Wood in Chicago (ZiPS still believes in him enough to give him a ERA+ of 100 there) and Matt Maloney on the Twins (85 ERA+, still enough to be in the top 5 projected starters for Reds). Yonder Alonso is a loss, but they did address the correct need and though he hit well in his 2011 cup of coffee, Alonso's minor league performances suggest that he's a bit overhyped. Among hitters, the Reds actually have a pretty decent field of second-tier prospects.
While the team could use an extra impact bat (despite finishing 2nd in the league in runs scored, they only had a 98 OPS+), but at this point, they probably need to sign a few low-risk, upside pitcher signings, simply to bolster the organizational lack at the upper levels. The very few minor league free agents they've signed (Sean Gallagher, Luis Atilano, Clayton Tanner) really shouldn't pitch in the majors - Gallagher had promise, but he hasn't pitched well at all in a long time. If the Reds aren't going to spend a lot of money and go after Edwin Jackson or Roy Oswalt, they really need to be in on guys like Paul Maholm or Jeff Francis.