Call me surprised: Managed print services (MPS) seems to be an obvious recurring revenue opportunity for VARs and MSPs. But so far, fewer than 30 percent of top MSPs offer managed print services to their end-customers, according to our MSPmentor 100 report (2010 edition). Will more MSPs embrace the managed print opportunity? Or is there something inherently wrong with the MPS market? We could get some answers during the CompTIA Breakaway conference (San Antonio, Aug. 9-12). Here’s why.
During CompTIA Breakway, it’s safe to expect some MPS market analysis from Photizo Group, which hosts its own MPS-related conferences. Also of note: Strategy Development, a consulting firm in the MPS market, will be on hand to help VARs and MSPs with MPS business planning, sales structure and process, back office operations, and break fix service ideas.
Photizo Group predicts the MPS market will reach $26.7 billion across North American and Western Europe by 2012. I’m always skeptical of such figures — especially when it’s impossible to say how many of those dollars will potentially flow into channel partners’ wallets.
Still, there are two other interesting points to note:
- Photizo Group claims MPS will account for 35 percent of the total imaging market in 2012, up from 14 percent in 2007 — so there seems to be a clear industry shift toward managed print. Photizo Group COO David Cameron is expected to share more insights at Breakaway.
- And perhaps most interestingly, ConnectWise CEO Arnie Bellini recently made the case that managed print services will never, ever go away — essentially providing a perpetual revenue stream for MSPs. It makes me wonder if CharTec — a ConnectWise Capital company — will next focus its hardware as a service (HaaS) expertise on MPS opportunities.
In retrospect, Bellini’s MPS point seems obvious. But if it’s so obvious how come most folks have somehow overlooked the point?
CompTIA’s Position
Clearly, CompTIA also sees MPS as an opportunity for channel partners. The association already offers a basic entry-level, vendor-neutral certification (called CompTIA PDI+) for printers, scanners, copiers and fax machines.
But break-fix expertise is the legacy part of the MPS discussion. What VARs and MSPs really need is sales education, pricing strategies and other real-world information to help pitch managed print to end customers.
I suspect those points will surface during Photizo Group’s session at CompTIA Breakaway, and during briefings with Strategy Development. I’m curious to hear how attendees respond.
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Posted In: Events | Hardware as a Service | Sales | Service Level Agreements
Tags: Arnie Bellini | bkwy10 | Breakaway | CharTec | CompTIA Breakaway | ConnectWise | HaaS | Hardware as a Service | managed print services | MPS | Photizo Group
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Good comments about the changing market and implications to the dealer/VAR community. We continue to see signs that the market is shifting to MPS and hear from an increasing number of dealers/VARs that benefiting from moving to a services based business. I look forward to discussing the market trends and implications to the channel during my presentation.
Joe – It is especially interesting to see how you’ve followed this from almost the very beginning: good form.
Your question from above – “…Will more MSPs embrace the managed print opportunity? Or is there something inherently wrong with the MPS market…”
The market can’t be wrong or right, it simply is.
What is inherently wrong is the way MSP’s(not all) view anything other than a transactional motion around output devices.
Especially when looking at MPS through a hardware prism – the hardware is just the beginning. And a continuously decreasing pool of opportunity – true MPS strives to reduce the number of devices/prints/images/clicks.
MPS, in order for it to “never, ever go away”, will evolve from managing hard assets and reducing hard costs to effecting the organization via BPO/BPM.
…boldly go…
David: I look forward to hearing more at Breakaway.
Greg: Your Death of the Copier blog remains a great read…
-jp
Joe,
As always, a good commentary! I would propose that Jason Evans of Buchanan Systems has it right when he says most MSP’s are challenged with MPS because they rely on a 100% ‘remote’ model and imaging devices (being electromechanical in nature, not just mechanical) require ‘feet on the street’ for service and support. This may not be the only inhibitor, but it certainly is a significant one.
Regards,
Ed
Joe,
I would expect a large amount of discussion around MPS at Breakaway this year. Our members have been asking us for help in this area. We’ve got a large contingent of companies from this space participating at Breakaway for the first time and I would think the Photizo session will have a full house. We are even planning on promoting them through a printed piece that will highlight all the vendors on the show floor.
Thanks so much for the nice post! We are going to be at booth 88, so please be sure to stop by and say hello to David and Mike. I completely agree that “sales education, pricing strategies and other real-world information to help pitch managed print to end customers ,” are vital, as is education and knowledge of the back office operations and service components. It’s a great hurdle to cross to be able to price and sell it, and the revenue potential is there to be tapped. It’s equally important to be able to run an efficient and effective program. I know our team of consultants who cover each of these specific areas are busy, busy, busy! See you in San Antonio!