Today, July, 2020, I replaced each mention of "MPS" and "managed print services" with "Managed IT Services", just to see if the content would still be relevant.
What do you think?
###
Managed Services is still being defined - or is it?
I am a firm believer in "the best advice is the advice you ask for...", please don't give me any advice - unless I ask.
I took my original story, back in 2017, and had it 'remastered' by AI.
What do you think? I like them all, even the dated suggestions number five is significant - and the song choice is subtle and nuanced.
"Integrate MPS into Managed IT services: MPS infrastructure should be integrated into Managed IT services to create a more comprehensive approach to technology management."
Below is the press release from Level Platforms, talking about managing imaging assets. At first glance, not all that mind-blowing.
Until you research Level Platforms.
"Agentless Remote", "power management", and "Cloud management".
I had the honor of speaking with Peter Sandiford, CEO Level Platforms, last week. We had a very interesting conversation about IT guys getting into MpS. A good conversation. Yes, the MSPs are seeing potential in the MpS arena, and yes, this software will work great for both IT VARs and BTA types.
There we were, sitting shoulder to shoulder with a freshly minted copier rep talking to a prospect. The rep was leading the team in monthly revenue and looking to lock it all up with this opportunity.
The five of us, three on the provider side, and two on the prospect were discussing the benefits of managed services. Our prospect was lamenting the many challenges with the current IT services provider:
- "Never hear from them"
- "Whenever they come out, they charge us. And they always come out."
- "I asked them if our backup was secure and found out it wasn't last week when we lost power"
- "He only does hardware and knows nothing about printers"
- "What are we paying for, again?"
The pain was there waiting for us to isolate and trial close. We knew how much they were paying and they wanted to work with one company, for all their technology needs.
Yes - we could have closed right then and there...
But we didn’t.
Out of my mouth came the following words,
"Well, we can certainly remove all your current issues. Our managed services program is designed to address everything you mentioned...but for now, let's concentrate on getting your copiers squared away, and then talk about managed services...don't let a managed services decision get in the way of new copiers..."
Jake's Odyssey: From Midwest Dreams to Silicon Valley's Vanguard of Managed Services
Jake's journey began in the heartland of America, amidst the golden fields of the Midwest. There, life was simple, and dreams were often tethered to the horizon one could see. But Jake had always felt the pull of something greater, something beyond those fields. So, with a heart full of dreams and a suitcase packed with ambition, he moved to California, the land of innovation and opportunity.
In Silicon Valley, Jake's first foray into the professional world was as a copier sales representative. The copiers, once symbols of innovation, now felt like relics of a fading era. But as the digital age surged, Jake felt adrift, yearning for a new direction.
One transformative evening, Jake chanced upon an article on thedeathofthecopier.com. It wasn't a lament for the past but a beacon to the future, emphasizing the power of Managed Print Services (MPS) and the art of storytelling in sales.
But it was an article from The Imaging Channel that truly resonated with him. It spoke directly to the newbies in copier sales, like Jake, highlighting the potential future in the industry. The article emphasized that while many stumble into the copier industry almost accidentally, it offers invaluable lessons that are universally applicable. It underscored the importance of commitment, curiosity, setting realistic quotas, and above all, authenticity.
I just read the press release from Okidata announcing a relationship between Oki and Agiliant.
You'll remember Agiliant is a newcomer to the MpS space(sorta, they pretty much invented MpS back in the day before flipping out to Pitney) - Agiliant is looking to provide third-party IT services to MpS providers, rounding out any managed services portfolio.
Not a bad model.
Okidata adds yet another dimension to their VAR strategy. Again, you'll remember back in the summer of 2011, Oki announced a re-vamping of their Total Managed Print portal that included interfaces to many of the popular PSA's.(Connectwise, Level Platforms...)
The VARs are coming, and their infrastructure partners are leading the way. All this is fine and grand. But software does not an MpS Practice make.
How are these new VARs going to SELL this new service? Just like helpdesk and the NOC?
It ain't that difficult, so we should see thousands of VARs embrace and prosper in this new realm, shouldn't we?
It's our ecosystem all over again - let's call it the MpS ExoSystem.
Managed services is referred to by various names — managed IT services, managed network services, MNS, etc. But no matter what you know it as, managed services is the hottest thing since managed print services.
As a new copier rep, you may not initially hear much about managed services, but it is the next evolutionary step in the copier industry. The industry has developed repeatable revenue models around hardware, and for those who wish to survive, we’ll shift this model into different areas, or “anything as a service” (XaaS). Down the street copier reps should get familiar with MS basics.
Let’s start with a definition of managed services. According to Wikipedia, managed services is “the practice of outsourcing on a proactive basis certain processes and functions intended to improve operations and cut expenses. It is an alternative to the break/fix or on-demand outsourcing model where the service provider performs on-demand services and bills the customer only for the work done.”
On one side, "Managed Service Providers(MSP's) Should Get into Managed Print Services", on the other, "MSPs Shouldn't Bother." I didn’t get the hype - maybe because I’ve done it from the front and behind - saved an MpS practice inside a VAR/MSP and created an MSP within a copier dealer.
Still, I was intrigued...
From the imaging side, I believe if you can create and run a profitable MpS practice, you can handle an MSP.
I thought to myself, "Maybe there was something to this…perhaps the MSPs in the room DO want to learn more about MpS and are thinking about getting into the realm." I started to pay attention.
From the IT side, I’ve felt adding printers to a screen in your NOC is no big deal; I’ve done it, and you can too. Indeed, in the beginning, I wrote about how we on this side should beware of the possible invasion of our little niche by all those independent VARs.
It didn’t happen that way, did it?
Why So Crowded?
Based on the number of people in the room, it was apparent others were interested in this subject. For a managed print services meeting at a computer convention, there were more people than I had anticipated. I thought to myself, "Maybe there was something to this. Perhaps MSPs want to learn more about MpS and are thinking about getting into the realm."
WRONG. DEAD WRONG.
"...a Konica technician asked my customer how they were handling IT..." with a waive of his hand he dismissed a meager attempt to take HIS customer.
The debate attracted a cadre of MSPs more to support their MSP leader, less to explore the possibilities. Like every VAR/IT/MSP/ITOEM I’ve ever talked with about managed print services, their mind was made up. Anything to do with printing "is below them” and getting into MPS would be “a step backward”.
Yes, those are quotes, and here are some other talk tracks uttered by the MSP dude:
"Not going to add to my already full plate of vendors…" "The market is not that big…" "My customers are reducing print, why would I get into a diminishing market…" "I don't like printers. Should I be selling huge systems or filling a 'toner quota' - thanks HP…"
Have you ever been to an event or party and at some point, realize you're not in the right place? Sure, you've received an invitation, but you feel completely outside the discourse. Not because the conversation is over your head, but more due to a crystallized moment in time when you can clearly see everyone else off on their own voyage - apart from you.
Well, that's the flavor of epiphany I experienced - that and a bit of deja vu.
These IT guys just do not like printers and think copier folks can't compete with their real computer expertise. One MSP mentioned how "...a Konica technician asked my customer how they were handling IT..." with a wave of his hand he dismissed a meager attempt to take HIS customer.
"How droFor IT Providers: Managed Print Services Could be the 24th Chromosomele..."
They do not respect printers and the people who derive a living from this industry. If you think about it deeply, you know what I say is true. Seasoned MPS reps are numb to IT people talking down to us but it is there...always has been.
I am done trying to evangelize to the IT community about managed print services for three, basic reasons:
1. They are too prideful (snobs)
2. Print is declining
3. The IT/VAR/MSP niche will decline FASTER than office print
Call Great America, today or buy out one of the smaller MSPs in your neighborhood.Today. Now. Stop fooling around. This is one of those cases that supports the, "go out and sell it now, we'll figure the rest out tomorrow."
Pride goeth before...
Sure, there will be a few VARs/IT/MSP organizations who dabble in MPS if HP takes the deal and the paper, but for the most part, they are not going to deploy an ‘engineer’ into the field to clear a jam. This is a cost and emotional issue.
Going, going...
Dave Ramos, a colleague, and friend presented interesting findings about print decline, sighting one of our favorite slides from International Paper and linking the latest paper plant closing in Alabama. A4 paper is in such decline IP had to close a plant whose primary output was 8x11 - this one location supplied 8% of the office-sized paper.
They've Got Their Own Kettle of Fish...
Here's the big reason - the IT world is going through a much bigger transformation than we are. The 'cloud' represents a move away from hardware - Zero Client and IAAS both support the realization that organizations DO NOT NEED HARDWARE-CENTRIC VALUE ADD. Today's IT providers are blind to this and in no position to adapt. The biggest shift is going to be elimination and evacuation. For example, they're talking about 'moving to a service-based' business model with 'recurring revenue streams' as though they've just heard of it.
Don't expect to see copier techs badged up by your local MSP anytime soon. They're not coming to the MPS party. Just like retail computer stores dissolved overnight, so too, will your trusty down-the-street VAR/MSP. Bottom Line...
What about you, the copier dealer, the toner supplier, and the printer organization? Think of it this way, managed print services manages the decline in print, managed services helps customers manage down their dependence on local servers, software, hardware, and the people(local) who provide value-add.
Now is the time to get into managed services - the low barrier of entry and distracted fragmented competitors. Don't overstudy. Forget about heavy evaluation.
Call Great America, today or buy out one of the smaller MSPs in your neighborhood.
Today. Now. Stop fooling around. This is one of those cases that supports the, "go out and sell it now, we'll figure the rest out tomorrow."
One more thing...
Forget about getting all your reps trained on "IT Services", like it's different from managed print services - well, I should say, the offering is different, but the approach is similar. There are too many managed services sales experts who have never sold, proposed, or closed a complex, all-inclusive engagement.
The outsiders from the IT realm coming into the copier world don't get us, they've hired the wrong 'advisors' to help them grow their share of our wallet and some are increasing their value for the next round of VC or prospective buyer.
Go out there and learn it the best way - in front of prospects.
Your reps don't need some other guy's super secret sauce and you shouldn't measure yourself against somebody else's benchmarks
Don't be a printer fool, embrace the AI revolution
It shouldn't be any surprise, that remote working has impacted managed print services - although anecdotal reports say volumes have approached pre-fear-of-Covid levels, how the evolution of the office transpires will impact your MPS contract volume.
The supply chain is almost back to normal, and by some estimates, 60% of businesses are returning to the office. Again, some data suggest different numbers.
As the 'office' goes, so does the number of devices and print/copiers produced go - this was evident before 2020.
But now Artificial Intelligence is on the scene - eliminating job functions and if you look closely, when AI is asked to solve a business problem in workflow, the answer does not include the statement, "First print a hardcopy of my recommendations and make 500 copies."
AI maximizes processes and as you know, the slowest function in any process is the function that involves hard copy output(print/copy) or input(fax/scan). AI eliminates slow processes and print is the slowest, least efficient.
So what?
Well, we put together a quick reseach project and engaged the great AI in the sky to help illustrate the current environment of MPS and possible influences and outcomes.
...work or activity that is wasteful or pointless but gives the appearance of having value.
In 2007, I traversed the sun drenched thoroughfares of Southern California - from the 'Bu to the Border, Laguna Beach to Victorville.
I was part of a new movement, "Managed Print Services", working for a big VAR, part of HP's flex into the copier niche(sound familiar?) with an MPS program and a new copier-killer, Edgeline.
Like most VARs, we were built on value added services attached to hardware sales. Unlike most, our newly built NOC helped the move to services based revenue streams. In addition to classic T/M contracts, email hosting, backup/disaster/recover, remote management and remediation, and help desk were part and parcel of our value proposition.
At the time, managed print services fit well into our portfolio; the notion was to integrate all services and bill per user, per month. I didn't consider this a 'good' or 'bad' idea, it was simply the established method.
We folded our per click model into the per user or 'seat' amount and soon ran into challenges -
What if we calculated the per seat cost but users printed MORE than we anticipated?
Could we discern between "high-volume" users and provide tiered billing?
How do I get EAutomate to bill by user?
There was risk.
“...A good friend of mine(Greg Walters), talked about SBB back in the olden days, and I told him it wasn’t going to work - but when Print Audit and West started bringing in high powered guys like Luke Goldberg, I knew it was going to fly”.
"If dealers don’t jump on this, they should just call their bankruptcy attorney today. "
- Anonymous
Unfortunately, back then, SBB for MPS, found few advocates. In 2008, industry know-it-alls labeled managed print services a fad; the latest scheme by some to remake the copier industry. The successful copier dealers could barely spell 'MPS'.
Since then, I've been inside VARs, across the country learning one thing - even if an MpS program is 'out of the box' easy, or well established, most IT providers treat print like 'fly-over' states. Separate in practice, structure and billing.
Has the time come? Is per user invoicing the second coming?
Yes and No.
Boon - "Cause your's is the best in the county, isn't it 'mam?"
Billing per user is easier for the client. No meter reads, or confusing invoices. When faced with a quote of $9.00/emp/month, prospects find the decision to move forward, easier.
Imagine a business with 150 employees; 75 are knowledge workers. This account would generate $675.00 each month, no matter how much they print/copy. (Not sure if that is big or small for you.)
Indeed, as prints decrease, and head count remains constant, costs fall against steady revenue.
This fits nicely in the true goal of a solid, contemporary managed print services engagement: reducing output.
Boondoggle - "...and you sir, in the yellow shirt, come on up on stage..."
Across industries, the best sales people rarely, if ever, discuss pricing.
Converting cost per image into cost per user and presenting this idea as a 'value-add', reduces(once again) the conversation to price, moving away from business solutions, focusing on cost as a primary motivator.(I know, I know...)
Same race to the bottom, different vehicle.
So what can you do? More importantly, who do you go to for real world advice? A sinner.
"Who can lead you off that crooked road? You need real sinner, people. A sinner of such monumental proportions that all your sins wrapped up in one couldn't possible equal the sins of this King of Sins..."
Listen to A Sinner - "...I have danced with the demon satan..." How To Implement a Per User Model for MpS
Create SBB in-house
Our industry either builds or subs out services - MpS and Managed IT can be provided by aligning with outsourced programs like Collabrance, Continuum, PrintSolv, and others. Soon there will be SBB programs sponsored by toner remanufactures.
Is this right for you? I'm not sure. I once believed the only way to offer SBB was to rely on distributors. Only they can spread the perceived risk over large amounts of devices/toner.
But today, the risk isn't in toner delivery. Aligning with toner suppliers for SBB my be as counter productive as partnering with transactional copier dealers when designing a print reduction program. The motivations are diametrically opposed.
So do it in-house.
Work closely with your managed IT services practice. MpS is IT.
Approach through IT, present as a managed program, not "toner and service just like your copiers"(upchuck). If you're not providing any IT services, stop reading this now and go feed your pet dinosaur.
Sell one more service(IT). MpS and Trees.
Embed MpS with backup disaster recovery or remote monitoring and management. Expand your current MpS services to include "remote output monitoring" or something similar, utilizing the full capacity of your data collection agent. If you don't know what I mean, stop reading this now, and go feed your dinosaur.
Line of business integration? Forget 'bout it.
Of course you want to integrate your even existing CPI billing structure with the new managed IT and SBB programs. But it isn't easy. All it takes is a spreadsheet and a separate P/L - your MpS practice has its own P/L, right? Tsk, tsk.
In the end, SBB is a good idea to protect your revenue from the continued reduction in 'clicks'. But per user billing is a temporary fix - nothing is going to stop the decrease in placements and clicks.
Not even the Supercharged Grenade Launcher of Love...
Back in the olden days, 2007 or so, I
came up with three stages of managed print services. This model was designed for my MPS practice,
not necessarily for the industry, and I used it to help explain the MpS
procedure to clients and co-workers. In
less than five minutes, the prospect had a basic idea of the stages, procedures,
and expectations of our program.
As time went by, every OEM, MPS dealership, and software
provider had their version of the MpS process.
HP had a similar idea but the one from Photizo matched and improved upon my vision of the stages. Photizo even came up
with a more detailed approach reaching into a Fourth stage.
I'm not saying this is the ONLY managed print services
model, it was mine. There are just as many MPS models as there are
definitions. All of them are good, each has shortcomings.
Ideally, I was trying to design a process that could be applied
to more that managed print services like workflow solutions and business
process optimization. I figured every
opportunity can be broken down into three stages, Control, Optimize, Enhance.
That makes sense, right?
Unfortunately, many of the models ended up being pure
marketing as deliverables rarely matched the original plan. Like most innovations in the industry, we first
argue “it will never work for me…” then jump on the bandwagon. We then focus
on price, commoditize the service into a box and accelerate the race to the
bottom, dumbing down the concept and cutting pricing.
MPS became little more than automatic supplies delivery and on-site
service, billed per usage. Managed print
services devolved into “managed toner delivery, at the lowest price…”
Regardless, today the industry seeks out pivot points with
many players getting into managed services - something I've been a proponent of
for a decade.
Naturally, because I was building an MPS practice inside a VAR,
I was looking for a way to ease copier dealers into the IT realm, to include IT
salespeople in the MPS equation, and fold managing output devices, business
processes, and IT assets in one agreement.
MpS deserved a screen in the N.O.C. Managed services was the
future and MPS was the way to get there.
Kill it. Chop it up. Let it dry out. Use as fertilizer.
Deja Vu:
a : the illusion of remembering scenes and events when experienced for the first timeb : a feeling that one has seen or heard something before
You're not fooled, are you? You've heard the talking heads. Like those who claimed Trump "would never, ever occupy the White House" - the copier industry has similar know-it-alls.
The establishment talking points are pretty clear:
"Talk about the decrease in images only when necessary and in most cases quote decades-old data."
"Say anything to make your machines relevant - fabricate rationalizations."
"Keep the same processes and 1970's business plan while promoting your new and different business model. "
I know, I know the above doesn't apply to YOUR dealership, does it? You've been expanding while the rest of the industry tanks. You're on a 'growth through acquisition' trajectory and your culture is second to nobody's.
Then why do you still consider A3 and A4 different?
Why don't you commission service contracts?
If you're so cutting edge and ahead of the curve, why do you sell MNS or MIT instead of Managed Services?
They're just questions.
If you're looking to resurrect your MpS, the good news is you recognize a problem - you're not ignorant.
The bad news is, you are probably too late:
Treat A3 and A4 volume the same in every MPS engagement
Find the best MPS vendor for your company. HP, LMI, SNi, PrintSolv, whoever. It doesn't matter, partner with somebody who matches your definition of managed print services.
Roll the MPS infrastructure into Managed IT services
Rename the practice "Managed Services"
Stop calling it 'Managed Print Services'; start referring to Managed Services - even when the only assets under the agreement are output devices
Incorporate an Output Study in every, single network assessment
Rename 'network assessment' to 'Technology Assessment'
Always bill for Technology Assessments
Embed your data collection agent into your network assessment tool
Employe/support a separate team of technicians to service ALL output devices
Separate COMPLETELY, from the existing Service Department
Intake all copier/printer support calls through your IT help desk
Train the Managed Services Team to sell
Fully engage your vendors
Establish Managed Services 'revenue gates' in your sales commission structure
Pay the Managed Services team salaries which make it difficult for them to consider leaving
Pay a monthly residual, for the life of the engagement
Give the MS manager P/L control and responsibility
Compensate the Managed Services Practice managers based on profit(P/L)
Forget about ALL the copier dealership business models
Establish a direct link between the Managed Services practice and your software/document management division. This means incorporating end-user, workflow-oriented questions inside every Technology Assessment. (MpS is BPO)
Insanity:
a : a severely disordered state of the mind usually occurring as a specific disorder b : doing the same thing, expecting different results
Twenty-two suggestions, points of light in the night sky.
How, or even if, your organization can connect the dots, is the biggest query.
Originally post, 9/2013 Too consider one better than the other is to miss the point completely.
Reminiscent of the way some consider MpS and copier service agreements as separate, it seems most regard managed (IT) services and managed print services as two, unique arguments.
Along the same line, this leads me to ponder:
Why isn't Big Data, simply Data?
When will virtual reality, become reality?
Why is social media not simply media?
Why isn't Cloud computing, just computing and mobil print, simply...print?
Smartphone or phone? Hardcopy or copy? Things that make you go, "hmmmm".
If you think about it, all of our offerings are silo'd in some manner.
Monitoring software like PrintFleet is separated from monitoring software from Preton which is separated from N-Able. Copiers are separated from printers. IT services are separated from business services. BPO is different than BPM - "basic" MpS is apart from "advanced" MpS....on and on.
But here is the challenge: Do our prospects and clients think like this?
Today, in the field, Jennifer and I run into these degrees of separation at nearly every turn and we can tell you this: customers don't want to be in the middle of our separation anxieties.
Some of your prospects are telling us they do not understand why their MSP doesn't monitor printers. Indeed, more than a few MSPs won't allow a DCA installation, on 'their network'. What the heck is THAT ? You DO NOT monitor printers and will "not allow" any 'data collection' software on your clients' network? Time to get a new managed services provider.
It's the old story - clients want one throat to choke (I dislike that phrase). They want one invoice and even more, they want one person to talk with regarding their business challenges and answers technology may provide.
They don't care about your quota, the logo on your 'thing', your month end, volume discounts or how many years you've been in the business. You know this.
So, do you have one invoice for both copier and printer usage? Are you calling all this "MPS"?
Great. But when are you going to start referring to your entire offering as "Managed Services" instead of managed print...manage network...or managed IT services?
It's all the same to the ones who really count - your clients.
"Whereof what's past is prologue; what to come, In yours and my discharge..."
The die was cast a decade ago; the rise, fall, and rise again of managed print services was foreseen. Even as office printing wanes, and withers, we are amid a Managed Print Services (MpS) Renaissance and age of enlightenment.
"Remote work is accelerating the A4 shift at lightning speed, ransomware and bad actors heighten the need for analog backups (paper), user authentication and print tracking/control are becoming normal, and that all adds up to new ways of doing business and new opportunities to manage that print."
Those survivors stand at yet another precipice:
Do we move forward with managed print services, or do we leave it in the dustpan of history?
Where AI meets ink – redefining the print management landscape.
Key Highlights:
Artificial Intelligence (AI) holds the potential to revolutionize print management and Managed Print Services (MPS), adding efficiency, security, and advanced features.
AI can enhance print security by providing forensic accounting and intrusion prevention, bolstering the overall cybersecurity profile of the MPS landscape.
Intelligent document processing (IDP), a new AI-powered technology, promises to streamline the handling of unstructured data, improving workflow accuracy and efficiency.
Greg's Words
No matter what the innovation, we are always left with a final statement and question: "This is great technology and really interesting ideas - but, how can I generate revenue, today, with this?"
With Artificial Intelligence, most of the financial impact is on the cost reduction, and increased productivity side of the equation. Sure, we can reduce the cost of doing work with AI. We can interface with prospects and customers with AI ChatBots, with no problem. The cost benefits are obvious. But putting together a product based on AI, for my existing Office Technology clients, is a major challenge.
AI is considered a process-enhancing solution.
It's like the inventors of refrigeration - they didn't get rich, but the companies that used refrigeration, like Coke, did.
We need to find that "Coke".
Meanwhile, folks in our niche are beginning to see, and talk about how AI will 'impact' managed print services, and to be frank, it is not new. it's just faster.
I have no doubt that we will see AI 'products' on the market within the next few months, before the end of the year.
We've put together a quick synopsis of the current outlook for MpS as the waves of AI wash onto our shores.
1. On average, companies save $1M (30% of total hardcopy cost), reduce hardcopy (printer, copier, and MFP) carbon emissions by 60%, and free up 10% of their IT staff who were previously devoted to supporting printers by implementing a Managed Print Services strategy.
Firms of all sizes are seeing significant benefits from implementing an MPS strategy. By outsourcing the entire ‘document production’ process including the hardcopy devices, document workflow strategy, and support services, customers are able to achieve a significant reduction in cost while achieving significant environmental benefits.
Source: The Photizo Group’s analysis of 105 Managed Print Service engagements using pre-and post-MPS engagement data. Justifying MPS Webinar – February 2009
2. Managed Print Services is more than just Cost Per Copy or providing an assessment to right size the fleet. Managed Print Services (MPS) entails the outsourcing of the fleet and document strategy to ensure the customer’s business process optimization goals are met.
In order to do this, an MPS provider must act as a professional services firm which offers multiple services in order to meet the customers requirements. In fact, over 70% of all MPS engagements include all of the following components:
• Vendor returns service call in 2 hours • Next day service response time • Understanding color print/copy requirements • Same day service (4-hr response) • Device installation • Help desk services • Assessment provided for the initial MPS agreement • End user training • Parts depot close to user sites • 24x7 customer service line • Recommendations on device deployment • Remote or on-site monitoring of devices
Source: The Photizo Group’s on-going study of Managed Print Service engagements in North America and Western Europe. The firm collects data from over 700 MPS decision makers each year.
3. Managed Print Services is the fastest growing segment of the imaging industry. In fact, the MPS market is growing at a compound annual growth rate of over 25% a year. In fact, the market will reach over $45B annually by 2013. By 2013 Managed Print Services will represent over 35% of the total imaging market and over 35% of all business print devices will be under a Managed Print Services contract.
Source: The Photizo Group’s 2009 MPS Market Size, Share, and Forecast Report.
4. There are three stages which customers go through in the adoption of Managed Print Services.
The first stage is to gain control of the fleet. 29% of all MPS engagements are at this stage. 47% of all MPS engagements are at the second stage, the stage of optimizing the fleet to ensure devices are deployed in the most efficient and effective manner. 23% of all MPS engagements are at the third stage of MPS, enhancing the business process. The third stage is about enhancing business processes by engaging document workflow and document management solutions.
Source: The Photizo Group’s on-going study of Managed Print Service engagements in North America and Western Europe. The firm collects data from over 700 MPS decision makers each year.
5. IT is typically the department responsible for managing the Managed Print Services engagement. In fact, 60% of the time, the IT department manages the MPS engagement.
Source: The Photizo Group’s on-going study of Managed Print Service engagements in North America and Western Europe. The firm collects data from over 700 MPS decision makers each year.
6. Hybrid dealers will dominate the Managed Print Services market. Hybrid dealers are those resellers (both dealers and IT VARs) who have transitioned from a hardware centric business model to a professional services business model based on delivering Managed Print Services. Hybrid dealers and ‘committed’ dealers (dealers who are committed to making this business model transition) make up less than 25% of all resellers and dealers. Fence sitting and ‘testing’ resellers (traditional hardware centric resellers) make up over 75% of all resellers.
The Photizo Group predicts that half of these traditional resellers will be out of business within the next five years as they fail to make the transition to the new business model.
Source: The Photizo Group’s Hybrid Dealer Report (Published January 2009)
The Photizo Group believes that Managed Print Services represents a disruptive business model which will affect all aspects of the value chain, including manufacturers, distribution channels, and other service providers.
Firms that make the transition to a professional services led business model will achieve a significant competitive advantage over firm’s which retain the traditional hardware centric business model. Understanding the evolution of this new business model is critical to all participants in the industry, including end users.
Excerpts from this article may be used as long as the Photizo Group is credited as the source.
The Photizo Group is the leading research and consulting firm in Managed Print Services, and the only research and consulting firm, which derives a majority of its revenue from the Managed Print Services market. The firm provides research, consulting, and market insights to customers, resellers, and manufacturers.
It isn't that difficult...to sell managed services. As a matter of fact, selling managed services is a lot easier than convincing a 'board of elders' to lease your new color device...with saddle stitch, no less.
First things first, if your leadership is so wrapped up in themselves they think:
A) copiers will be around forever or
B) Managed services is akin to adding a duplexer or fax board
- keep your resume up to date.
Unless you're in some backwater market where they still lease copiers for 72 months, hardware sales are about to fall off a cliff (slight exaggeration). Maybe your guys don't see it coming - it is already here, so the sooner you get your personal act together about services, not hardware, the better.
Just between you and I, there are hundreds of hints and tips around selling managed services. In the end, the advice is nothing more than a shuffle of what you've already been told.
There isn't ONE training course, consultant or "MNS" expert who will mention any one of these tips:
1. Stop being afraid
2. Forget everything you know about hardware
3. Ignore your quota and in some cases...Ignore your boss
Your Fears
If there's one thing I've seen from coast to coast is whenever somebody on the copier side starts to talk about Managed IT Services, they backtrack into, "well, I need to know more about that business before I dive in..." Horse Pucky.
Who would buy a product which openly insults?
We're taught to believe that the computer guys know so much more than we. We've got memories of feeling dumb because we called IT only to have them come up, reboot and head back.
"Reboot? That's it????!...arrrrg..."
IT folks were strange, anti-social, and difficult to understand. They fixed our problems and they made us feel like dummies.
Stop worrying about what you think you don't know, stop Facebooking and use the inter-web to learn about what CIOs think is important.
"You know what Mr. Prospect...every, single, copier is exactly the same..."
Yeah, we used that line all the time at IKON. Of course, we sold almost every brand back then...
The same goes for servers, cloud, backup disaster recovery, switches, firewalls, help desk, anti-virus - your prospect does not care how many awards your hardware has earned. They do not care how much you've invested in R/D or how long you've been in the industry.
They don't...and when your OEM rep tells you to build credibility by dropping their name, let the words go in one ear and out the other.
Tell your prospect how your stuff solves problems. Printers, copiers, luxury submersibles and can openers solve problems. If you can find a problem duplexing solves, I'm sure you can find an issue BDR(googlitize it) addresses.
Stop Selling and Start Solving.
Ignore Your Boss - "On the 1st of the Month we Sell Solutions. On the 20th, we push boxes..."
Careful here.
If I had a dime for every sales manager I've met, that wasn't worth a dime, I'd have a lot of dimes - a March of Dimes, actually. I'm not saying ALL sales managers are worthless...and I know YOUR manager is Fortune 100 material. I am not recommending you blatantly mock your boss - not overtly - just understand his perspective.
Here's the deal, typical sales managers are compensated on the team's hardware sales and most dealerships are driven to quota by their OEM - it is the way of things.
When you hear your manager say things like, "Everybody better start learning MNS, because these copiers aren't going to be around for long...""its a numbers game, kid..." or "you can't sign deals on the phone..." or "...why don't you get a new car/suit/wife/credit card/house..." take it with a grain of salt.
Don't get me wrong, if this style matches your core values, stop reading and get back to those 100 dials, 10 contacts, 1 appointment - there's a church out there dying to buy a copier!
Otherwise, let's talk about you.
I've always said and felt that pure managed print services has little to do devices and nothing related to logo's - its a service, not a cartridge or machine. Managed services is an extension of the same ideal, its a service not a server or firewall.
Most managers do not understand this because they are not compensated for services. Indeed, some ignore services all together figuring that's "the service department's responsibility" - point, missed.
I know you didn't grow up wanting to be a copier rep - NOBODY DOES. I understand how difficult it can be describing what you do to your parents - been there, done that, got the therapy to prove it.
And here we are, in the heart of the jungle...
Do anything to improve yourself every, single day. Polish up on your knowledge of the Cloud, nod during your next sales training session, and then go buy my book. Write in the margins, read it from your iPad on the bus ride home...(?). Cut and paste passages into emails and Tweets - put the cover on your desktop.
For the past few months, I like a few of you, have been reading MPS articles over at the IT-director.com site authored by Louella Fernandes, Principal Analyst, Quocirca.
She has a great article written today that pretty much summarizes the current state and challenges of MPS.
It is a great read and I have, with permission, re-printed it here.
Current economic pressures have put renewed focus on technology consolidation within businesses. Although often overlooked, the print environment can be a source of huge cost which can be easily be brought under control through using a managed print service (MPS). The printer and multifunction (MFP) market is characterised by falling prices and shrinking margins. In this increasingly commoditised market, selling services is the key to capturing new revenue for both manufacturers and resellers. For customers, an MPS is a way of reducing capital investment and lowering the ongoing costs associated with inefficient printing practices, such as the cost of purchasing and storing consumables, costs related to high paper usage, as well as reduced productivity as a result of printer downtime.
Managed print services range in depth and scale and may be offered either through the reseller channel or direct by the manufacturer. An entry level MPS offers a way to purchase printers combined with supplies, maintenance and support through an all-inclusive contract. This type of service is typically offered through the channel and, dependent on their capabilities, resellers may also offer print environment assessments and device consolidation consultancy.
At the other end of the scale direct programmes from vendors like Xerox and HP offer a range of services to assess, optimise and manage the print environment. Whilst large enterprises are the focus of manufacturers' direct MPS programmes, it is the lucrative mid-market served predominantly by the channel where resellers have most to gain.
The channel opportunityDownward pressure on printer hardware prices means that resellers need to differentiate their offerings by selling more software and services. This allows resellers to add value through initiatives like offering print assessments or document workflow solutions. Entry level MPS contracts are often cost-per-page contracts where customers sign up to a contract that includes consumables, service and support. So, rather than the traditional purchasing model where a customer may purchase consumables from different suppliers, an MPS approach allows the reseller to benefit from an ongoing supplies revenue stream.
The printer market is served by a mix of traditional copier and IT-driven printer resellers. The transition to selling MPS is different for each of these. Copier resellers typically have the infrastructure in place due to the traditional financing models for copiers, often sold on "click" contracts. Whilst copier resellers have often sold via the facilities or procurement departments within organisations, an MPS offers them the opportunity to connect with the IT department. IT departments may be more familiar with certain brands such as HP, Lexmark or Samsung and also expect strong networking integration expertise.
Meanwhile printer resellers are characterised by extensive product ranges and IT expertise, but may not have the service capability or infrastructure to sell cost-per-page contracts. It is attracting these resellers to the MPS fold which is probably the most challenging for manufacturers.
Vendor channel programmesThe channel convergence taking place is a market driver for printer manufacturers, and many are actively developing their channel programmes to help their resellers navigate these often unchartered MPS waters. Unsurprisingly, vendor programmes are usually focused on managing their own devices, with inherent limitations for multi-brand resellers, but it can provide resellers with a simple and straightforward packaged service which enables them to make the switch to MPS reasonably quickly.
Many printer manufacturers are packaging their managed print service tools for the small and medium (SMB) market. Some programmes require remote monitoring for automated meter reading, which has traditionally been a manual task carried out by the customer. As well as enabling regular billing, automatic meter reading also enables supplies replenishment to be proactively managed meaning that customers can receive consumables before they notice the have run low, and before productivity is impacted. Remote monitoring also enables proactive maintenance. Ultimately MPS should make sense for any reseller that wants to enhance its customer relationships, whilst building annuity revenue streams and bringing in higher margin business.
Two of the most advanced vendor programmes are those from HP and Xerox. HP Smart Printing Services (SPS) uses the resources and skills of its HP partners to supplement its own. The SPS offering consists of two different blocks of services: break/fix support and supplies are delivered by HP under a proprietary agreement. Hardware, financing and other service elements required are delivered by the partner under a linked, but separate, contractual agreement. In the EMEA region HP is aiming for 60% growth, illustrating the importance of MPS to its channel efforts.
PagePack is Xerox's principal channel service offering in Europe, based on cost-per-page model. The contract covers hardware support, maintenance and supplies (excluding paper), 24/7 access to consumable ordering tools, Smart eSolutions (automatic meter reading) and hardware support and maintenance. It also offers Office Productivity Advisor tools which calculate document costs and it's SAVE (Self-Assessment Value Estimator) which enables resellers to promote the benefits of PagePack contracts over traditional non-contract purchasing.
Other vendors are also increasing their emphasis on managed print services for their channel partners. The Lexmark Value Print programme provides certified resellers with a range of tools, support and training to help them sell an MPS. Meanwhile Kyocera UK has launched KYOprint Pack which is an all-inclusive service that enables customers to purchase a device with all hardware, consumables, and service included. KYOprint Packs are valid for a specific number of pages, and expire when that number of pages has been printed. This is unlike some other MPS contracts where the customer is charged for a certain number of pages per month regardless of whether they are printed.
Ricoh UK launched its @Remote partner programme in Autumn 2008, and since then over 30 dealers have signed up for the programme which offers automated meter reading along with supplies management capabilities.
Multivendor managementWith many companies operating a heterogeneous printer fleet, those resellers hoping to truly exploit the opportunity of managing a customer's complete print environment must use generic print management tools which offer consistent functionality across printer brands. PrintFleet, for instance,offers a hosted and reseller-hosted remote print monitoring solution. The benefit of using this type of tool is that resellers do not need to invest time in learning and installing a range of different vendor proprietary tools.
Meanwhile, the need for resellers to be able to connect with IT decision makers as well as offer service capability has led to the emergence of the "hybrid reseller" which combines the service skills of copier resellers with the technology expertise of IT resellers.
XMA Solutions is a good example. XMA is a specialist supplier of IT hardware, supplies and services, and has been focusing on managed print services for five years with customers predominantly in the public sector and education markets. XMA offers print management consultancy such as document assessments and hardware and software deployment for a range of printer brands. XMA is also an HP Smart Printing Services partner and is actively embracing the managed print services opportunity.
When it comes to the IT infrastructure, managed services have already been accepted as the way to reduce the cost and time of managing IT in-house. Printing is as much an integral part of the IT infrastructure as other networked devices, and using a third party to manage any element of the printing environment is a start to making efficiency gains and reducing costs.
Nevertheless, there is still a significant learning curve for resellers who are yet to make the shift to a service-based approach. The MPS transition requires new skills and resources, and printer manufacturers need to nurture existing channel partnerships as well as develop new ones to compete effectively in a market where MPS is the key to reviving their fortunes.
Whilst vendor proprietary tools are certainly a good way for resellers to get started with managed print services, generic tools should also be considered by those resellers who have the resources to manage multivendor environments.
Managed Print Services has been around for decades and as a concept offers the opportunity to expand beyond the printed document. It always has been.
Things change, they always do, and this is true for managed print services. I was involved with developing an MpS model back in 2007 and again later, twice, with the MPSA.
There is no wrong model - there's just a more 'right' model. Mine. Which is now yours.
The typical, status quo MPS model stands on three basic phases, "Control", "Optimize" and "Enhance" and is progressed sequentially, with a Beginning and a Terminus.
I never liked it as a step-by-step process. Managed print Services is an ongoing system - what today we call a "flywheel".
So when looking at the above illustration, you'll notice there are no arrows. Sure, the hexagons sport numerals, and yes, you must start with Hex"00" and bounce through the remaining areas, but the process can move from 02 to 01 to 03; non-sequential.
Here is your new and improved MpS Renaissance Model, Z22:
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