HP Managed Print Services Guarantee Announcement - The Ben Stein and Bruce Dahlgren - Show Simple Analysis

Special guests, Intel, ST, and InfoTrends.

My impressions.

The HP Printing Payback Guarantee -

Simply put, HP guarantee's an amount of savings, based on analysis and implementation of a new HP Managed Print Services Agreement.

Companies will be required to complete a detailed, fee based assessment.

The agreement also requires a hardware/supplies/service agreement for a minimum of 3 years.

After a year, HP conducts another assessment to determine past savings. HP will credit the difference between projected and actual savings.

Although most of this is re-hashed, I think the Guarantee is new - which is probably a bummer for Intel and ST; or is it?

Here's the deal with this guarantee:

First, there is a low probability that HP will ever need to credit any client. There is practically now way that any company will not be able to save money after implementing MPS, anybody's MPS, because most have no idea and no control of printing costs.

Also, HP will perform an in depth, detailed FEE BASED, assessment before offering the guarantee - they will know where all the skeletons are buried and exactly how much they can save their client. Ratchet that number back 10% and savings can be guaranteed.

Third, this is a great marketing technique(opposed to a marketing scheme) for a the client to be offered the guarantee, a three year hardware/supplies/service agreement must be initiated - delicious.

Fourth, after the first year HP performs another assessment, not sure if this one is fee based, to determine the delta between projected and actual savings.

If the projected is less then the actual, HP issues a credit - not a check. You tell me, if HP knows they need to find $100,000 of savings, they will find $101,000 - genius. One can only wonder what happens if the proposed savings ends up being more then actual - will the client issue HP a credit?

I am sure this move will be dissected ad nauseam.

This is a Enterprise Account issue - and for most of the channel, this announcement won't effect day to day activity.

Details Here.

HP to Re-Org IPG - Again - Focus on Managed Print Services - Again

A new division specific to the MPS market will be formed, head up by Bruce Dahlgren, the former Lexmark vice president and general manager of North American Printing Solutions and Services.

You may remember the Dahlgren case back in 2006; it seems HP and Lexmark sued each other over Dahlgren's defection from Lexmark to HP.

Last week Ricoh, today HP - wowzie.

Or is it?

Industry insiders, pundits and observers have been waiting to see how and when Bruce will begin leveraging his experiences with Lexmark.

Game on.


The press release is sketchy on detail but does mention HP's interest at the "Enterprise" level.

So this does not appear, at first, to be a channel program.

There was no creation date given for this new division HP saying more information will be released over the next few months.

Also, from the PR:

"...It(HP) also launched a program Monday that it said would help to guarantee savings for companies that sign up for its print services. HP will assess a company's imaging and printing environment and calculate how much it thinks the company can save using HP's managed services. After a year, if customers haven't realized the savings, HP will make up the difference with a credit that can be used for their next printing services contract..."

Here is the full release:

July 12, 2009 — IDG News Service —

Hewlett-Packard is stepping up its efforts in the area of managed print services. The company plans to form a new group dedicated to this area, and is also launching a program that it says will help guarantee savings for customers who sign up for the services.

The new group will manage printing environments and help companies reduce the printer hardware they need to use, said Bruce Dahlgren, senior vice president of worldwide sales and services at Hewlett-Packard's imaging and printing group (IPG). The company already offers printing services, but HP will be able to give the area more focus by giving the business its own unit, Dahlgren said.

HP said it would help enterprises to consolidate their printing hardware and reduce the cost per page printed, Dahlgren said. Customers will be able to negotiate service contracts with HP, which will manage their hardware and software printing infrastructures.
Click here to find out more!

HP didn't say exactly when it would form the new unit, but said announcements will follow in the coming months.

It also launched a program Monday that it said would help to guarantee savings for companies that sign up for its print services. HP will assess a company's imaging and printing environment and calculate how much it thinks the company can save using HP's managed services. After a year, if customers haven't realized the savings, HP will make up the difference with a credit that can be used for their next printing services contract.

"With all the expertise, we should provide a guarantee," Dahlgren said. The company thinks it can help companies cut 20 percent to 30 percent of their costs, he said.

HP may be looking to stimulate growth in its printing and imaging group, which saw revenue decline more sharply in the last quarter than some other divisions. Revenue from the group dropped 23 percent in the last quarter to US$5.9 billion, compared to a drop of 3 percent in revenue for HP as a whole.

Printing services are a big opportunity for HP, said Gilles Biscos, president at Interquest, a research and consulting company in Charlottesville, Virginia. Some areas of the printing business, such as billing and the production of legal documents, have been relatively unaffected by the rise of the Web, and there remains a big market in helping companies to find ways to cut their printing costs.

Large companies could potentially save money by consolidating copiers, fax machines and multifunction printers, Biscos said. Simple steps like shutting down printers when they are not in use and printing on both sides of pages can dramatically cut costs, he said.


Link Here.

Selling, Selling, Selling

"You see...we didn't budget for this..."



"What, you wanna see the manager?"