(Industry analyst Clint Bolte sent the following comment in response to the thread, "PIA Says It’s Wary of New Managed Print Services Offerings by HP." We're also presenting here it as a stand-alone post. Our thanks to Clint for his input—Ed.) Michael J and Chuck understand this new market niche that is being pursued by the 16 different digital print engine manufacturers with their array of multi-functional devices (MFDs) or multi-functional printers (MFPs). The market is corporations who buy copier fleets of remotely distributed MFDs for their various plants and campuses throughout the world. Think hundreds of units typically networked in a geographic location. Go to http://www.managed-print-services.com to learn more about this niche and the new trade association that is being formed to help users, vendors (HW & SW), consultants, and the support media better understand the dynamics. The inaugural Managed Print Services Conference was held April 26-28, 2009 in San Antonio. Highlights of this gathering with case studies and success principles can be downloaded as a courtesy from my website (www.clintbolte.com) under conference highlight articles. Now for the opportunity that national trade associations could be focusing on… Corporations universally are having a difficult time making the transition from the Purchasing Department’s economy of scale copier fleet purchasing (hardware as well as expendables) mind set to that being envisioned as Managed Print Services. There literally is a major corporate cultural shift to getting the entire white collar work force to print “less” off their networked MFDs (while literally giving up their desktop printers, scanners, and fax units-all of which are more expensive!). The print “less” comes from imbedded software that defaults to duplex printing, encourages PDF “printing” and distribution via e-mail. The corporate responsibility for implementing the new MPS concept is gravitating from the Purchasing Department to the IT Department. This is often a mistake as few IT folks are heavy into “interpersonal corporate cultural change.” IT is typically into standardization and do-it-my-way. The logical partner for the IT Department to pull this winner off is the in-plant printing operation. The thorough training, hand-holding, and customer service that has become second nature to good in-plants is the missing link that corporations of all size need to make this work. PIA and NAPL both have many in-plants as members and MPS can be a bonanza for these folks. IPMA, ACUP, NGPA, and the other various in-plant associations are no doubt getting up to speed quickly to help their members be prepared. Hopefully the printing industry will learn much more about this new niche arena, Managed Print Services, at Print ‘09 and possibly at the Executive Outlook Conference held the day before Print ‘09 starts.
Discussion
By Greg Walters on Jul 21, 2009
I can not believe what I am reading - this flavor of "Managed Print Services" has very little, if anything to do with in-house production and graphic arts. You who think it does are missing the point in the biggest way possible. When I first read the PIA reaction I was dumbfounded. But to see some of the comments regarding the reaction leaves me even more shocked. This type of MPS is connected to EDM packages, Remote monitoring tools and business analysis and oh so much more. We who practice the discipline know how OFFICE DOCUMENTATION works through an organization, and the economic and cultural impact of changing the existing business work flows - electronic submission and ticket generation is only a part of our knowledge base. On the other hand, few of us would know what pantone number "coke red" is and we never, ever "loop" a document. It is true, as you state, "...The corporate responsibility for implementing the new MPS concept is gravitating from the Purchasing Department to the IT Department..." But your follow up is incorrect, "...This is often a mistake as few IT folks are heavy into “interpersonal corporate cultural change.” IT is typically into standardization and do-it-my-way..." - and very far from the truth. If it is connected to the network, it is IT's responsibility. This mantra should have been adhered to as soon as digital copiers hit the street. IT departments and CIO's are embracing the new "challenge" and changing the landscaped of the old typical copier purchasing model. A true MPS Engagement supports "in plants" peripherally - but in-plants cannot by their very nature support a corporate MPS Engagement. Big picture here is simple - in-plant, and print for pay, have nothing to fear from MPS.
By Curtis Johnson on Jul 21, 2009
Greg, Ask owners of Print-for-Pay operations if a site such as MarketSplash is a threat. It's just HP developing their MPS. Many owners won't buy HP hardware because MarketSplash is directly competing for their clients. I wonder how the HP Hardware Sales looks at this develop in their company? Maybe HP shouldn't sell printers any more; and just sell prints and cut all of us out.
By Michael J on Jul 22, 2009
Greg says "in-plant, and print for pay, have nothing to fear from MPS" I would take it one step further and say that there is a way of thinking of "MPS" as the future of printing. The way I see it is the true "distribute and print" can become a reality by looking at Managed Print Services as connecting all the Print output into a standards based model of parallel manufacturing. Yesterday HP announced that HP and Consolidated Graphics are doing personalized covers for National Geographics. http://tinyurl.com/nwohl4 In the press release it says "The covers are printed by Consolidated Graphics, the world's largest HP Indigo user, on its fleet of HP Indigo 7000 Digital Presses." Fleet management comes directly from the world of MPS that is lead by the independent "copier" suppliers on the ground, and HP and Xerox for global corporations. Business Process Outsourcing, with the acronym BPO, was worth $1 billion when Donnelly bought a BPO a couple of years ago. BPO is, in my not so humble opinion, print brokering on steroids. It's taken many years for the standards and the technology to evolve. This year at Print 09, we're going to see RISO show a color printer that does 120 ppm in the workgroup. 120 ppm in four color is faster than the multi I ran way back in the day. Most modern MFDs or MFPs ( I still can't figure out which are the right initials) have two way connections to the internet. Since the tech is now out there and the standards are now in place, it just needs the MPS people to figure out the business model to combine their efforts to deliver print anywhere, anytime. A run of 1 on the desktop, 50 at the workgroup, 500 at the in plant, 5000 at the networked commercial printer, and 50,000,000 on the fleet of print engines run by independent business distributed around the planet.
By John Smith on Jul 22, 2009
managing fleets of copiers, printers, multi-function devices is not a new idea. Xerox was doing this 20 years ago. I was involved in developing that business. They called it "document management services". In-house plants were a target then and they will continue to be a target for the likes of HP and Xerox. Any volume that generates click revenue and consumables (toner, ink) revenue is sought after by these companies. Graphics Arts organizations should be uneasy with regards to MPS and any other strategy that may negatively affect our continually decreasing share of the printing pie. These strategies have had a profound impact on the commercial printing business. HP and Xerox can be both friend and foe. Being prudent and cautious about their tactics is wise.
By Michael J on Jul 22, 2009
Curtis, you say "Maybe HP shouldn’t sell printers any more; and just sell prints and cut all of us out." Given what they announced yesterday with Consolidated doing all the printing for National Geographic covers, I think it could just as easily be the other way. HP should just be the point person when a global wants to produce a huge personalized project, and send all the work to PSP's who have their equipment. HP is much too busy trying to fight for margins in the computer business to want to get into the printing business. As for being friend and/or foe that's the way it is. The "designer" is the printers friend sometimes and foe other times. We'll be able to get a better read on HP if and when they get their White Label Version of MarketSplash delivered. The franchises will be looking at it very closely since the real fight is between Staples v the franchises and as of earlier this week, the biggest of all - WalMart is in the SMB printed collateral business.
By Phil Hoffman on Jul 22, 2009
I worked a combined 22 years at Xerox, IKON and Ricoh (Lanier) primarily in their outsourcing divisions. 5 years ago I joined all of you as an entrepeneur and bought an existing Quick Print company. 2 years ago I started a Managed Print Services (MPS) company as well. Our MPS program has become quickly profitable because we are willing to support printers and MFDs of every make and model, as virtually every company in America has more than one manufacturer in their print fleet. All the manufacturers (Xerox, HP, IKON / Ricoh) find it impossible to manage competitive brands. Since we can manage all manufacturer's, we are able to provide, in most cases, the most cost-effective solution to our clients. As a Quick printer and MPS provider we are now able to cross-sell printing services with MPS...thus providing a much more recession-proof business model. MPS is something every printing company should look at.
By Michael J on Jul 22, 2009
Just to add an interesting data point. Office Max is now offering MPS as a service. I can't believe Staples and Office Depot will be far behind. http://officemaxmps.com/default.htm
By Clint Bolte on Jul 23, 2009
Phil, I found it interesting at the first Managed Print Services Conference that the dig prt engine manufacturers all want to offer "turn key" MPS services. They agree to manage other manufacturers equipment until the current lease expires and then of course replace those units with their more efficient models. Predictable fox-in-the-hen-house move. The independent MPS providers do seem to have the least conflict of interest. Their only limitation is one of geography. If the independent does not have a regional office in a remote city or country that the corporate client has a plant or office, then the independent is off the "qualified list." This issue seems to be driving a bevy of mergers among various regional independents in order to broaden their geographic spread. There are only a handful of MFD manufacturers with worldwide presence. Hence, that level of competition is limited. Ironically it is difficult to image any appreciable economy of scale being present beyond any developed continent that would make a corporation exclude an otherwise excellent independent who has an acceptable presence on any particular continent. The whole MPS movement, while claiming to have been around for a couple of decades, seems to be coming into its own as a dynamic entity. The printing industry will no doubt be reading stories and hearing accounts of how more innovative entrepreneurs will have been able to crack the sheath and offer valuable services complimentary and supplementary to the MFD network. Might even hear some tales at Print '09 in a couple of months.
Discussion
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