Managed Print Services Corner: Are You "In The Game"?

Last year, I wrote an article about the emerging managed print services industry, and identified the lack of standards and the need for a forum to share ideas, best practices, and case studies. I also wrote about how MPS represented more than just a 'sales approach' but rather a new business model. In fact, my firm, the Photizo Group, predicted that during the next four years we would see a fundamental shift in the imaging industry from a traditional 'procurement-based' acquisition model to a services-based outsourcing model. I remember having conversations with other analysts in the imaging industry who challenged the idea that MPS was really an 'industry', or even a significant business model change.

Since that time we have seen major changes. Hewlett Packard has formed a $5 billion group focused on MPS -the Managed Enterprise Services or MES Group. A number of vendors have launched major MPS initiatives and dealer programs (there have been eighteen dealer programs announced in the last fifteen months). MPS seems to be a 'track' or topic in almost every conference. There is a publication dedicated to MPS -the MPS Insights Journal. In fact, it is beginning to feel like an 'industry'.

MPS made a big first step forward being an industry with the first Managed Print Services Conference in San Antonio, Texas in April of this year. During a time when conferences where seeing attendance declines of 50% or more from prior years, this conference exceeded attendance targets by 50% - a clear indication of the interest and growing demand for exactly the type of forum we had been proposing. (The next conference in North America is scheduled for May of 2010 with Platinum sponsorships already being sold out and other sponsorships going fast.)

But still, there was a gap. There was no ongoing association for sharing managed print services and for representing the industry as a whole. Now even this has changed! The Managed Print Services Association has officially been launched, there is a Web site (www.yourMPSA.org) where you can apply for membership (for a free trial period), and there is an official board and set of officers.

So how do you become involved? First, sign up for membership. This is an opportunity to join the association at a ground floor level and play a significant role in its early formation. Secondly, attend the 2010 MPS conference to learn firsthand from industry experts, share insights, and network with industry-leading vendors and practitioners. Finally, the best way to participate is to begin making the shift in your own organization to an MPS business model.

Despite the major focus on MPS this year, the majority of dealers and resellers still are not "hybrid dealers" with a managed print services based business model. Research by the Photizo Group indicates that still, less than 10% of all IT resellers and office products dealers are truly hybrid dealers. While almost every one of these resellers and dealers will claim a 'managed print services' focus, when looking under the cover we find that most of these firms still only have a token program with one or two clients and a limited number of devices under contract.

The biggest barrier holding resellers back is, frankly, a lack of commitment. I have stood in several dealers' demo rooms (which cost $100,000s to build), only to listen to a host of reasons why they cannot afford to make even small investments in the people, training, and 'change management' required to become a hybrid dealer. This continues to be the biggest challenge to most resellers and dealers making the transition to a hybrid model.

So, are you ready for the change? Will you step up and sign up for the Managed Print Services Association? Will you attend the 2010 MPS conference? And most importantly, will you commit to becoming a successful hybrid dealer?



Mr. Crowley is the founder of the Photizo Group. Prior to starting this firm, Mr. Crowley spent over 20 years working for major imaging firms such as QMS, DataProducts, and most recently, Lexmark International. Mr. Crowley is also a professor of business at Midway College. He speaks globally on the topic of MPS adoption, market trends, and user requirements.

The Photizo Group is the leading firm providing market intelligence for the Managed Print Services market. The firm sponsors the annual MPS North America and Western Europe MPS conferences (www.mpsconference.com), produces numerous reports on the MPS market, and provides custom consulting and research to firms who are formulating and executing strategies to successfully compete in the new MPS market place. For more information visit the firm's website at www.managed-print-services.com.