By: Louella Fernandes, Principal Analyst, Quocirca
Published: 25th November 2011
Copyright Quocirca © 2011
Nearly every enterprise – including commercial businesses, educational institutions and government organisations – relies on printing to support essential business processes, whether it is back-office operations such as accounting or payroll or front-office activities such as sales and marketing.
Regardless of how dependent an organisation is on printing, IT departments struggle with similar management challenges: providing reliable print services that meet organisational expectations while containing operational costs.
Too often, organisations own a broad range of print, copier, scanner and fax equipment, often from different vendors, requiring different software, consumables and supplies. Devices may often be outdated and inefficient, and few organisations know how many assets they have, how they are being used, and how much it costs to own, maintain and operate them.
This makes it increasingly difficult to optimise efficiency and control costs, and creates a huge IT and administration headache. Organisations facing staff shortages or lacking the correct technology expertise do not have the resources and skills to keep on top of print management issues, leaving them exposed to spiralling print costs, reduced productivity and increased risk due to unprotected devices.
This has prompted many businesses to move to a managed print service (MPS) to ensure more efficient and effective print infrastructure operation and management, from the office to the print room.
A managed print environment can deliver strategic business advantage, supporting cost reduction imperatives and environmental demands along with improved compliance and reduced risk. Today, the strongest uptake of MPS has been among large enterprises (1000+ employees). Our recent research suggests that half of European large enterprises have implemented or are piloting MPS.
The emergence of independent MPS providers that offer vendor-agnostic, best-of-breed technology, software and services is promising to expand the penetration of MPS beyond the exclusive domain of large enterprises.
This channel provides an important role in delivering impartial assessment services and unbiased MPS recommendations. Services such as multivendor break-fix, support and supplies replenishment enable organisations to protect existing hardware investments rather than moving immediately to a standardised print environment.
By retaining the flexibility to add devices from multiple vendors, independent MPS providers can innovate with the latest technology and introduce new capabilities independently of any single incumbent printer or copier supplier.
While hardware vendors will have a vested interest in moving the customer to a standardised environment, most of the major MPS vendors are able to support and manage a multivendor environment at the initial stages of an MPS engagement, sweating the assets as needed.
Not many organisations operate a standardised fleet at the outset. It is therefore vital to select an MPS provider that can provide an impartial assessment of the print environment.
However, if an organisation is planning to move to a standardised environment, a hardware-centric MPS may be the best approach. This can be supplied by a hardware vendor, SI or independent MPS provider. Many hardware vendors will use channel partners to deliver MPS midmarket.
Vendor-neutral providers can often negotiate the best prices on equipment and supplies, delivering quality at lower cost.
It is in the interest of an independent MPS provider to offer the right device for the purpose, regardless of brand. While a single-vendor strategy forces an enterprise to settle for a single vendor's offer for each area of the enterprise, a multivendor strategy enables a true best-of-breed approach across the organisation.
Pricing for traditional MPS contracts is often based on minimum volumes. We have found that is the top inhibitor of MPS adoption. Independent MPS providers often use different pricing models such as pay-per-print, so customers do not pay for pages they have not printed.
Although hardware vendors have been the predominant MPS suppliers for decades, the market is at a tipping point, evolving to encompass a wider range of providers. Independent firms should take advantage, particularly if they have the resources and infrastructure to design and deploy MPS.
This window of opportunity is limited, though: the technology that enables independent MPS providers to move up the MPS stack is also available to competitors such as SIs, managed services providers and hardware vendors, which are using the same or similar technology to move down the stack.
As MPS providers look to gain further mid-market traction, we expect further consolidation in the market. Specifically, we expect hardware vendors to acquire more independent providers to strengthen their multivendor MPS delivery and service capabilities. A report is here.
Wednesday, November 30, 2011
Sunday, November 6, 2011
Highest Share of Managed Print Services Providers Report Using Print Audit Facilities Manager in CompTIA Study
With an expanding Managed Print Services industry, more dealers and VARs are using Print Audit’s Facilities Manager to implement their MPS strategies.
Calgary, Alberta (PRWEB) November 05, 2011
CompTIA, the Computing Technology Industry Association, recently published a study surveying 400 Managed Print Services providers and IT personnel in end-user companies. The purpose of the report, entitled Examining the Print and Document Management Market, was to further the understanding of print and document trends from the end-user perspective, as well as to profile Managed Print Services provider firms. The study identified Print Audit’s remote device management service, Facilities Manager, as the leader in the North American market with a 40% share among Managed Print Services providers using a third-party (non OEM) solution.As a multi-award winning product, Facilities Manager is used by dealers worldwide to remotely collect meter reads, automate supplies fulfillment and report service information for managing fleets of printers, copiers, fax machines and multi-function devices.
According to the study, the Managed Print Services industry will continue to grow because of its impact on reducing infrastructure costs associated with printing, improving productivity and environmental sustainability. The study also found that most companies expect their print volumes to increase or remain the same and of the companies not currently using Managed Print Services, 35% are expected to adopt a MPS strategy over the next year.
For more information on the CompTIA study, please visit http://www.CompTIA.org
About Print Audit®:
Established in 1999 and headquartered in Calgary, Alberta, Print Audit is the fastest growing print management company in the world. By providing businesses with innovative and practical print management software solutions, the company has helped customers recapture over $200 million in printing and photocopying expenses while saving an estimated 190,000 trees a year. Print Audit has offices located in the United Kingdom, France, Germany, South Africa, Australia, Brazil, Canada and the United States.
For more information about Print Audit, please contact 1-877-412-8348
Friday, October 28, 2011
Rethinking MPS- The Independent Approach
The following paper was written by quocirca
Managed Print Services (MPS) have proven their value to businesses that have chosen a trusted partner to manage their print infrastructure. Many organisations have recognised that MPS can help them become more agile, lower costs, support sustainability initiatives and improve the efficiency and productivity of their increasingly diverse and mobile workforce.
Although MPS has been widely adopted by larger enterprises, the emergence of independent MPS providers that offer vendor-agnostic, best-of-breed technology, software and services is promising to expand the penetration of MPS beyond the exclusive domain of large enterprises. This channel provides an important role in delivering impartial assessment services and unbiased MPS recommendations. Services such as multivendor break-fix, support and supplies replenishment enables organisations to protect existing hardware investments rather than moving immediately to a standardised print environment.
This paper outlines the need for MPS and why organisations that are operating a heterogeneous print environment should consider an independent MPS provider to proactively manage and transform their print infrastructure.
Friday, October 21, 2011
Monday, October 17, 2011
Friday, October 7, 2011
Printer Makers Look To Service Model For Growth
http://online.wsj.com/article/BT-CO-20111007-705805.html
By Matt Jarzemsky Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Printing companies, facing stalling growth in traditional hardware and supplies sales, are increasingly competing for contracts to overhaul the way their customers deal with printing.
Competition has intensified among Xerox Inc. (XRX), Hewlett-Packard Co. (HPQ) and others in providing so-called managed print services, in which they handle all of a customer's printing needs--from the machines and ink to consulting on reducing costs--typically over the course of a three- to five-year contract.
The business is set to grow 11% to $9.4 billion this year, according to market researcher International Data Corp.
But it remains unclear whether making clients more efficient in their printing--such as by reducing the number of printers per employee in an office--will eat into sales of hardware and toner. That concern comes at a time when sales of printers and supplies are expected to remain flat over the medium-to-long term.
"I think there's no question that if you're going to reduce [printing costs by] 30%, there is some cannibalization," said Bruce Dahlgren, head of H-P's printing services unit. "These customers want to print less. We want to provide the right technology to meet the customer's needs."
The cannibalization is eased by the fact that many potential customers exist, as companies look to cut costs and see managing their print operations better as a way to do so.
"Most enterprises and mid-sized companies don't do a good job of managing print," said Ken Weilerstein, an analyst at research firm Gartner Inc. He said managed print projects typically cut printing costs by 10% to 30%.
The business demands continued investment to improve equipment, as well as areas such as software that enables printing from mobile devices, H-P's Dahlgren said.
"We're on the hook every quarter to bring new solutions" to the company's managed print services offering, he said.
Xerox is ramping up hiring to support growth in managed print services. This year, it's tripling the number of staffers devoted to finding new business at the unit that contains its managed print services operation.
The market has become more competitive and "isn't for the faint of heart" as many large companies have already signed up with providers, Xerox Senior VP Jim Joyce said.
Joyce said Xerox has shifted its efforts to focus on selling the service to small and medium sized businesses, fewer of which already buy their printing that way. Deals with those customers tend to be smaller, but the market is "really starting to move," he said.
Xerox and H-P are considered by many to be the leaders in the market, though estimates of companies' market share vary, and Lexmark International Inc. (LXK) and Ricoh Co. Ltd. (RICOY, 7752.TO) are also big players.
Lexmark is focusing more marketing spending on managed print services, said John Crandall, general manager of the company's enterprise unit. The company is also seeking salespeople with international and industry experience to help it expand beyond its strengths in the retail and financial services sectors.
"If I've been pushing boxes before, I can't go in and turn my hat around, and I'm a services person all of a sudden," Crandall said. "You're going into a much more complex sale, it's a higher-level sale, often at the C-level."
Weilerstein said growth in the managed print business appeals to printer makers because it compares with stagnation in traditional sales of printers, ink and supplies. The providers are also drawn to the area because it allows them to gain control of large fleets of printers at once, he said.
Printing companies' motivation to sign managed print services contracts involves more than just revenue growth. "The service provider is in the catbird seat" because it can install its own products across a client's operations, Forrester Research analyst Craig Le Clair said. "They're going to lose revenue over time if they don't win these coveted spots.
Le Clair said that the overall market for managed print services is expanding enough to give all the established providers room to grow in the area.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
By Matt Jarzemsky Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Printing companies, facing stalling growth in traditional hardware and supplies sales, are increasingly competing for contracts to overhaul the way their customers deal with printing.
Competition has intensified among Xerox Inc. (XRX), Hewlett-Packard Co. (HPQ) and others in providing so-called managed print services, in which they handle all of a customer's printing needs--from the machines and ink to consulting on reducing costs--typically over the course of a three- to five-year contract.
The business is set to grow 11% to $9.4 billion this year, according to market researcher International Data Corp.
But it remains unclear whether making clients more efficient in their printing--such as by reducing the number of printers per employee in an office--will eat into sales of hardware and toner. That concern comes at a time when sales of printers and supplies are expected to remain flat over the medium-to-long term.
"I think there's no question that if you're going to reduce [printing costs by] 30%, there is some cannibalization," said Bruce Dahlgren, head of H-P's printing services unit. "These customers want to print less. We want to provide the right technology to meet the customer's needs."
The cannibalization is eased by the fact that many potential customers exist, as companies look to cut costs and see managing their print operations better as a way to do so.
"Most enterprises and mid-sized companies don't do a good job of managing print," said Ken Weilerstein, an analyst at research firm Gartner Inc. He said managed print projects typically cut printing costs by 10% to 30%.
The business demands continued investment to improve equipment, as well as areas such as software that enables printing from mobile devices, H-P's Dahlgren said.
"We're on the hook every quarter to bring new solutions" to the company's managed print services offering, he said.
Xerox is ramping up hiring to support growth in managed print services. This year, it's tripling the number of staffers devoted to finding new business at the unit that contains its managed print services operation.
The market has become more competitive and "isn't for the faint of heart" as many large companies have already signed up with providers, Xerox Senior VP Jim Joyce said.
Joyce said Xerox has shifted its efforts to focus on selling the service to small and medium sized businesses, fewer of which already buy their printing that way. Deals with those customers tend to be smaller, but the market is "really starting to move," he said.
Xerox and H-P are considered by many to be the leaders in the market, though estimates of companies' market share vary, and Lexmark International Inc. (LXK) and Ricoh Co. Ltd. (RICOY, 7752.TO) are also big players.
Lexmark is focusing more marketing spending on managed print services, said John Crandall, general manager of the company's enterprise unit. The company is also seeking salespeople with international and industry experience to help it expand beyond its strengths in the retail and financial services sectors.
"If I've been pushing boxes before, I can't go in and turn my hat around, and I'm a services person all of a sudden," Crandall said. "You're going into a much more complex sale, it's a higher-level sale, often at the C-level."
Weilerstein said growth in the managed print business appeals to printer makers because it compares with stagnation in traditional sales of printers, ink and supplies. The providers are also drawn to the area because it allows them to gain control of large fleets of printers at once, he said.
Printing companies' motivation to sign managed print services contracts involves more than just revenue growth. "The service provider is in the catbird seat" because it can install its own products across a client's operations, Forrester Research analyst Craig Le Clair said. "They're going to lose revenue over time if they don't win these coveted spots.
Le Clair said that the overall market for managed print services is expanding enough to give all the established providers room to grow in the area.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
Saturday, October 1, 2011
Xerox Announces Relationship with ABBYY
ABBYY and Xerox Ink Certified
Partner Reseller Agreement
New North American Reseller Agreement Addresses Content Management and Data Capture Needs in the Market
Milpitas, USA (September 22, 2011) ABBYY provider of document recognition, data capture, and linguistic technologies and professional services, today announced that it has entered into a certified partner reseller agreement with Xerox Corporation. Under the new agreement, Xerox will resell ABBYY’s FlexiCapture and Recognition Server solutions to its United States, Canada and Mexico customer base as an offering for Xerox DocuShare, extending ABBYY’s reach in these key regions. With this agreement in place, Xerox will be able to address the needs of DocuShare customers requiring a complete content management solution with high-performance data and image capture technology.
“Enterprise content management solutions need sophisticated capture and recognition tools to understand documents and images quickly, which automates manual tasks and reduces cost at the front end,” said Harvey Spencer, industry analyst and president, Harvey Spencer Associates, Inc. “The relationship between ABBYY and Xerox DocuShare can bring to the market effective automated content acquisition solutions that are critical components in the enterprise. This looks to be a positive business move for both parties.”
Xerox DocuShare is a content management platform with thousands of worldwide customer deployments, ranging from simple document management applications to more robust process automation solutions. ABBYY was selected after an extremely competitive evaluation because of their solutions’ performance, ability to integrate into existing Xerox DocuShare solutions, and outstanding track record.
“Xerox has always been focused on delivering innovative products to market that solve real business problems,” said David Smith, vice president and general manager, DocuShare Business Unit, Xerox Corporation. “As we extend the capabilities of our content management solutions, ABBYY quickly emerged as the data capture provider of choice because of their industry-leading functionality and understanding of customer needs. We are now able to provide even greater efficiencies and business value to our customers by partnering with ABBYY.”
With the agreement, ABBYY’s FlexiCapture and Recognition Server will be sold by the Xerox direct sales organization, DocuShare direct sales, and Reseller Partners. Through the sale of combined content management and data capture solutions, ABBYY and Xerox DocuShare are addressing changing needs for enterprise organizations looking for ways to better manage their critical data and documents. The partnership will allow Xerox to strengthen its offerings by making highly accurate capture available to DocuShare services and solutions.
“ABBYY has a long-standing and successful relationship with Xerox, and we are pleased to expand our partnership,” said Steve Kincade, Vice President, Channels North America, ABBYY USA. “This win is a milestone in the development of our relationship with Xerox. We see the agreement as a key step in increasing ABBYY’s capture and imaging business by providing additional capabilities to sophisticated enterprise content management solutions.”
New North American Reseller Agreement Addresses Content Management and Data Capture Needs in the Market
Milpitas, USA (September 22, 2011) ABBYY provider of document recognition, data capture, and linguistic technologies and professional services, today announced that it has entered into a certified partner reseller agreement with Xerox Corporation. Under the new agreement, Xerox will resell ABBYY’s FlexiCapture and Recognition Server solutions to its United States, Canada and Mexico customer base as an offering for Xerox DocuShare, extending ABBYY’s reach in these key regions. With this agreement in place, Xerox will be able to address the needs of DocuShare customers requiring a complete content management solution with high-performance data and image capture technology.
“Enterprise content management solutions need sophisticated capture and recognition tools to understand documents and images quickly, which automates manual tasks and reduces cost at the front end,” said Harvey Spencer, industry analyst and president, Harvey Spencer Associates, Inc. “The relationship between ABBYY and Xerox DocuShare can bring to the market effective automated content acquisition solutions that are critical components in the enterprise. This looks to be a positive business move for both parties.”
Xerox DocuShare is a content management platform with thousands of worldwide customer deployments, ranging from simple document management applications to more robust process automation solutions. ABBYY was selected after an extremely competitive evaluation because of their solutions’ performance, ability to integrate into existing Xerox DocuShare solutions, and outstanding track record.
“Xerox has always been focused on delivering innovative products to market that solve real business problems,” said David Smith, vice president and general manager, DocuShare Business Unit, Xerox Corporation. “As we extend the capabilities of our content management solutions, ABBYY quickly emerged as the data capture provider of choice because of their industry-leading functionality and understanding of customer needs. We are now able to provide even greater efficiencies and business value to our customers by partnering with ABBYY.”
With the agreement, ABBYY’s FlexiCapture and Recognition Server will be sold by the Xerox direct sales organization, DocuShare direct sales, and Reseller Partners. Through the sale of combined content management and data capture solutions, ABBYY and Xerox DocuShare are addressing changing needs for enterprise organizations looking for ways to better manage their critical data and documents. The partnership will allow Xerox to strengthen its offerings by making highly accurate capture available to DocuShare services and solutions.
“ABBYY has a long-standing and successful relationship with Xerox, and we are pleased to expand our partnership,” said Steve Kincade, Vice President, Channels North America, ABBYY USA. “This win is a milestone in the development of our relationship with Xerox. We see the agreement as a key step in increasing ABBYY’s capture and imaging business by providing additional capabilities to sophisticated enterprise content management solutions.”
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