After several false starts, the managed print services (MPS) market seems to be reaching a tipping point. Skeptical? Consider these six signs of momentum from Dell, Hewlett-Packard, Ingram Micro, Photizo Group, The Utility Company and Xerox.
Over the past few days, I’ve seen a flood of activity in the MPS space. Some of it is vendor hype, but much of it shows real activity:
1. Dell’s Moves: During our MSPmentor Live webcast (March 18), Dell disclosed that it has been piloting managed print services with selected MSPs. March Wyatt, a channel printer account executive at Dell, says the pilot service supports printers from third-party hardware makers. Although Dell has not formally announced a managed print service, you can bet it’s coming. Check MSPmentor.net/events for a link to the archived event on March 23.
2. Hewlett-Packard: I can’t go into details yet, but there are rumblings that HP is about to put together some far more aggressive managed print efforts, coupled with the company’s Insight Remote Support tools. You’ll find more clues from HP in the company’s enterprise printing blog.
3. Ingram Micro: The company is hosting a half-day managed print seminar in association with the Ingram Micro Seismic Partner Conference in Dallas this May (http://www.ingrammicro.com/seismic).
4. Photizo Group: The company is hosting a Managed Print Services Conference April 26-28 in San Antonio, Texas. Xerox is among the sponsors. Watch for the Managed Print Services Association (MPSA) to debut at the event.
5. The Utility Company: Launched by former N-able CEO Mark Scott, The Utility Company is assisting MSP franchises across North America and just launched a remote printer support service.
6. Xerox: The company’s PagePack service has caught my attention multiple times. Xerox is quietly writing to open APIs and plugging into third-party managed services platforms. I expect to hear far more about the effort throughout 2009.
Remaining Challenges
Still, I realize VARs and MSPs need to educate customers about managed print services. And VARs/MSPs themselves need to better understand (A) how to market managed print and (B) how to generate recurring revenue from managed print services.
Ironically, I think the recession is forcing many MSPs to give the managed print market a second look for new profit opportunities.
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Posted In: Hardware as a Service | Software as a Service and Hardware as a Service
Tags: | Dell managed print services | HaaS | Hardware as a Service | Hewlett-Packard Managed Print Services | HP Managed Print Services | Ingram Micro Seismic | managed print services | Managed Print Services Association | MSPA | Photizo Group | The Utility Company
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HP is the sleeping giant in this market. They seem to be working in silos over there where the server, desktop and printer teams aren’t necessarily sorting through managed services together. I hear a lot about HP performing cost and workflow assessments to help customers consolidate desktop printers into MFPs but that’s not the same as a long term recurring managed print engagement. I hope to start hearing from “one” HP with their “total” vision for managed devices.
Roger Sherman
VP, IT Done Right
Agreed regarding HP. And more importantly, the HP VAR channel.
With such a huge name in the traditional IT universe, it would only seem natural for HP to take a leadership roll, through both the IPG and TSG channels.
Still, the IT VARs need to get their heads around something that was always considered last, if ever at all, output.
Printers, copiers, and MFP’s aren’t as sexxy as Blades, G6 and VMWare.
I am beginning to see more corporate IT Departments “tip toeing” into the MPS arena with internal “Density Studies” – basically dividing the number of employees by the number of printers.
Today, that ratio is typically 2.5:1. There, I just performed somebody’s “Density Study”.
I think this is set to explode; it just make so much sense for everyone involved.
Xerox seems to be the most forward-thinking vendor so far, but I’m sure others will be working aggressively to establish a presence.
Mike Cooch
http://www.everonit.com
http://www.smbitpros.com
Mike -
I had an in depth with Xerox at the ITEX show – and I agree with you.
And I agree with you that everybody else will be “fronting” MPS Systems.
Very interesting.
Ok – my 2 cents again….. What we are talking about is a payment based selling model for printers. Resellers can take any printer and create a service model around it. You do not need any manufacturer to set something up. Our resellers, choose whatever printer they want and create a model that includes toner, maintenance, support and of course the printer. They charge a single payment per month, get paid upfront on the deal and own the printer day one on a co-branded contract that the client guarantees to make the payments.
They sell the Print/Service to include toner for life of the contract, warranty and maintenance support.
Example: for a 130.00 per month “PAS” the reseller will clear 1,500.00 in gross profit… Cost equals printer, allocated toner, Drum kits and installation.
It’s my opinion, but you don’t need to wait on someone else to figure out how to make you money. What you create has a greater shelf life than what someone else creates…
Ramsey Dellinger
http://www.mspondemand.blogspot.com
I wonder if the multi-function printer makers are watching and reading. Over the past 30 days, several of MSPmentor’s most popular posts involved managed print services.
The MSP industry is ready for printer makers to step forward with a coordinated, standards-based strategy. It’s time for some of Ray Noorda’s old “coopetition” — healthy cooperation and intense competition — to make managed print services fulfill its promise.
Savvy MSPs are ready. Are the vendors?
Joe, it seems as though creating your own strategy would be better, cheaper and more profitable. I dont see why any VAR or MSP looking to sell print services wouldn’t just lease the printers themselves in their own company name and then pass on that cost and a spread to their customers since its all packaged as one cost for everything. Financially, the return is tremendous and infinite since the MSP is making $$ off of my people’s $$. That its good for the client too just makes it a Win/Win/Win.
Stu
Stu@southernlendingsolutions.com
http://www.southernlendingsolutions.com
Ramsey -
You just described the classic CPC “copier sales model”, except no dealer wants to hold the paper on copiers; they leave that for the customer.
It’s a simple model, for simple people. Oh, and profitable.
The most difficult issue for IT VARs to conceptualize is the actual “selling” of the programs/engagements.
Are all IT VAR consultants “reactionary” opposed to proactive?
Very interesting breed of folk.
Everyone talks about the merging of the printer and copier market. The real merger is between output and input (PCs and Servers). More and more companies want one neck to choke for thier IT needs (Super VAR). The companies that do this will be the winners in the long run.
Yup – One Throat To Choke -
Joe, this is a very ’spot on topic’ (as usual!). The number of MPS programs for channel partners is clearly one indicator of the growth in this market. The Photizo Group is in the midst of a benchmarking study to compare vendors MPS programs for the channel, and we have identified 17 distinct programs, over half of which are new within the last nine months. If the number of vendor offerings is any sign, then clearly, the market is seeing rapid growth.
FYI, after the success of our first conference, we are launching a second conference this fall in Europe (October 21-23rd in Amsterdam). I hope that your team will be there to cover the event!
Ed: I saw your call for speakers for Europe. Congrats on your progress. I have a US event on Oct. 21 but will keep the European Managed Print Services conference on our radar.