A Year Ago Was The Right Time For Managed Print Services

Where is the Managed Print Services niche, today, August 2009? ------ I just read an interesting comment on LinkedIn regarding the lack of "buzz" around the MPS Summit from the recent ReCharger show. Bob Chernisky was asking aloud, "Did anyone attend? Did no one say anything worthwhile? Was the juxtaposition of MPS with toner remanufacturing a mistake? Are most of the prime-movers of the industry turned off by that association (too low-tech for us)?" I know people attended, but I did not. I do not think the juxtaposition is a mistake. And if the "prime-movers or any movers, think the toner guys are too low-tech, so what? 

To speak directly about the Re-Chargers, I think they should worry as business paradigms shift to MPS. I also think that this shift could be a great opportunity for the bold. For the forward-thinking companies who are willing to remake their current business model. The reman's can be a component of a good MPS practice; one of the team. Right now, there aren't as many devices hitting the streets. These older machines, the ones finding a spot on new, MPS engagements, will need toner and parts. And entering this niche may give them a better talk track than the current "we're cheaper and we're Green..." But back to Bob's questions, where is all the buzz? 

Come to think of it, the last few weeks have been a bit quiet. Especially considering all of the announcements - the big HP guarantee, PagePack 3.0, Okidata Managed Print, the MPSA national elections. ;-) The recent Gartner data showing combined copier and MFP sales fell 30% over the past year should be center stage and all the buzz - but if I read one more post, article, or Tweet about the Magic Quadrant, I am going to upchuck. 

 Maybe it's just that people don't want to talk about bad news. Well, boo-frickin-who - where there is turmoil, chaos, and fear, there is opportunity. The Bad News: Lai-Ling Lam, senior research analyst at Gartner said this,

"The market witnessed a weak demand as both businesses and consumers reduced spending and the drop in shipments was also impacted by tighter inventory controls in order to minimize inventory levels in the channels.."

Dire news to be sure, and nothing terribly new for any of us selling in the office B2B. Unfortunately, it's worse than we think; it usually is... Our bread and butter, office printing devices, showed a 24.5 percent decrease in the first half of 2009.

"...businesses are delaying or eliminating purchases of new equipment altogether. The global downturn has also forced them to review their printing needs which could change their print consumption in the long term. At the same time, it also makes print vendors increasingly look at alternative hardware strategies such as managed print service (MPS) and smart MFP adoption as ways to increase revenue..." added Lam.

We in the MPS world, recognize this 30% avalanche as a huge opportunity - a huge MPS opportunity. I understand where Ms. Lam is coming from and I take exception to her above statement, "print vendors increasingly look at alternative hardware strategies such as MPS...as ways to increase revenue...". Successful Managed Print Services strategies should not be hardware driven - an assessment looks for areas of cost reduction, not hardware placement. 

Why So Quiet - Maybe there isn't as much 'buzz' from the MPS niche because we in it are actually doing it, day in and day out. And by we, I mean we selling, infrastructure, marketing, branding, research, and MPS training types. Perhaps we are all on the same spot in the MPS Adoption Cycle - execution(or re-execution) and it is now more important to operate the practice versus talk about the practice. That 30% deficit is a hole waiting to be filled with MPS services, not equipment. 

A boon for us, a boardroom challenge for the big manufacturers. The Silence of Activity - humming along.

Dare To Compare: Dealer Managed Print Programs

Ed and the gang at Photizo are conducting a free Webinar illustrating some of the current dealer programs - in a "compare and contrast" manner, I believe.

Should be good, general information for those looking to get into MPS, those who are just starting and for us who have been slammed in the head a few times, but keep on chuggin.

Register here.

Now IS The Time for Managed Print Services - Hardware Sales Down as Much as 30% by Year End

Focus shifts to print services as hardware shipments slump

by Billy MacInnes
20 August 2009

Pressure on vendors and channel partners to diversify into print managed services is expected to intensify in the wake of a huge slump in shipments of printer, copier and multifunction products (MFPs).


The steep fall in shipments has been thrown into stark relief with figures from Gartner showing the market for printer, copier and MFPs in EMEA dropped by almost a quarter in the first half of 2009.


Gartner’s numbers were supported by HP’s recent third quarter results which showed a 23% fall in overall printer unit shipments, including a massive 42% decline in commercial printer unit shipments.


Worse still, the market research company predicted shipments would continue to experience a double-digit decline in the second half of the year that could reach 30%.


Todd Prabhakar, senior analyst at Gartner said vendors were looking at areas such as managed print services and document-managed software to try and increase revenue in the face of customer reluctance to spend money on new equipment.


“Vendors must sell services to businesses that will help them better control costs, save on running costs, reduce cost-per-page issues and consolidate devices,” he argued.


Prabhakar’s comments are likely to be endorsed by vendors in the print and copier world as they have become increasingly interested in managed print services.

Back in March, HP IPG channel development manager Alan Hatfield revealed it was aiming for 60% growth across EMEA for managed print services and the UK would achieve 30%. Lexmark UK channel sales director Marcus Harvey agreed it was “a key area for us” and Martin Tierney, UK services director at Kyocera Mita, said managed print services was “definitely the way to go”.


According to Gartner, the vendors worst affected by the global recession were Hewlett-Packard and Canon, which suffered market share falls of 31.5% and 25.8% respectively.
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Original here.