Print management is becoming more of a concern in mid-size and large organisations. Today’s printer infrastructures exhibit many of the characteristics of unmanaged PC assets; there is no current information about what equipment is owned, where it is located or who is using it. There is also no centralised record of when the equipment went into service and no easily accessible record of the purchase cost or relevant service contracts.
In some ways, the problem is worse than it ever was with PCs because organisations have, for too long, failed to manage their printer assets actively. This is because printing is often perceived as a low-level concern compared with other IT issues.
Firms own an excessive number of printers – often between one and three users per printer – and have inadequate control of their purchase or disposal.
Firms are now facing new challenges as they consider how they can lower costs or boost productivity through the technologies they use. The costs associated with printing and copying, once a back-office concern, are now an issue for many firms’ middle managers. Gartner estimates that firms spend between one and three per cent of their revenue on document output.
Few companies know how much they spend on producing documents. But a growing number have started to identify and assess the visible and hidden costs, which include consumables, support and maintenance. By trimming their printer, copier and fax fleet, purchasing competitively, and managing the infrastructure over time, businesses can reduce their output spending by up to 30 per cent.
Businesses should recognise that it can be less expensive for them to manage their printing needs on their own if they know exactly how to proceed and have the resources in place to do so.
If this is not the case, a managed print service (MPS) provider can help. By opting for MPS, businesses can generally benefit from simplified budgeting of output costs by consolidating contracts.
Such services provide expertise in implementing appropriate products, usage policies and processes to meet companies’ document printing, copying and faxing needs. They also offer on-site service and dedicated helpdesk assistance. Leaving management and support tasks to an MPS provider can allow an organisation to concentrate on its core business, while freeing up IT staff for other purposes.
The MPS market has developed strongly. In a 2005 Gartner survey of 917 businesses in the UK, France and Germany, between 28 per cent and 54 per cent of respondents had outsourced some or all of their office printing or copying applications.
This research shows many providers are tailoring or expanding their service offerings and targeting the larger small- and mid-size business (SMB) market.
Services from security and accounting systems to managed print services represent an incremental revenue source for vendors, in addition to an opportunity to enhance customer satisfaction and retention, and a chance to engage the channel in service-related activities.
With the current focus on selected market segments, including vertical markets and the SMB market, better use of channel partners is critical to the success of the go-to-market strategy of printer and copier vendors.
MPS packaged for the channel is a vehicle for leasing hardware while incorporating other items, such as services and consumables, into a fixed monthly payment, including hardware, maintenance and supplies.
According to Gartner research, 70 per cent of firms do not know their pre-managed print service spending and 55 per cent of respondents do not know their future spending. Businesses need to develop a print strategy that includes measuring and tracking output usage as well as regular reviews of their output needs.
Malcolm Hancock is a principal analyst at Gartner
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