Managed Print Services - Reducing The Cost and Complexity
Managed Print Services - Reducing The Cost and Complexity
CONTENTS
1 INTRODUCTION .............................................................................................................................................. 3
2 MPS EVOLUTION ............................................................................................................................................ 3
3 THE PHASES OF MPS ENGAGEMENTS ............................................................................................................. 4
4 MPS COMPETITIVE LANDSCAPE ..................................................................................................................... 6
4.1 PRINTER/COPIER MANUFACTURERS ........................................................................................................................6
4.2 IT SYSTEMS INTEGRATORS/OUTSOURCING PROVIDERS ................................................................................................7
4.3 IT MEGA VENDORS ..............................................................................................................................................7
5 MPS PROVIDER CAPABILITIES ......................................................................................................................... 8
6 RECOMMENDATIONS ................................................................................................................................... 10
6.1 VENDOR RECOMMENDATIONS .............................................................................................................................10
6.2 PURCHASING RECOMMENDATIONS .......................................................................................................................10
ABOUT THE SPONSORS ........................................................................................................................................ 12
ABOUT QUOCIRCA ............................................................................................................................................... 13
Although Quocirca has taken what steps it can to ensure that the information provided by the vendors involved in this report is true
and reflects real market conditions, Quocirca cannot take any responsibility for the ultimate reliability of the details presented.
Therefore, Quocirca expressly disclaims all warranties and claims as to the validity of the data presented here, including any and all
consequential losses incurred by any organisation or individual taking any action based on such data.
1 Introduction
Organisations continue to be driven by a combination of controlling cost and improving efficiency and, to achieve
these, increasingly turn to outsourcers, as well as approaching IT as a utility. Alongside this is the continued drive for
sustainability and the growing awareness of how IT impacts an organisation‟s carbon footprint. This trend is seeing
the emergence of consulting services that help organisations to implement initiatives that make the procurement,
operation and disposal of IT assets more environmentally responsible. Such services include data centre and desktop
virtualisation, supply chain optimisation and remote working solutions and, increasingly, the optimisation of the
printing environment.
Print costs are estimated to account for between 1% and 3% of an organisation‟s total revenue, yet is an area that
has literally been left to its own devices. Digital communication has actually led to a rise in printed content, often
these days in colour, which has led to escalating print costs for many organisations. Adding to this is the fact that
ownership of devices is often fragmented across departments and locations, many of which are from a diverse range
of manufacturers, requiring the storage of many incompatible consumables. In addition, whilst facilities management
would have been traditionally responsible for the purchasing and management of service contracts for photocopiers
and fax machines, the emergence of the networked multifunction device (that acts as a printer, scanner, copier and
fax) has led to IT becoming more involved in the purchasing and management of all devices.
In order to gain control of their complex print environments, many organisations are turning to managed print services
(MPS). MPS providers may be printer or copier manufacturers, specialist managed print providers, channel partners
or IT service providers. An MPS provider assumes responsibility for the management of either part of or the entire
print environment and can handle the full gamut of activities including assessment, fleet optimisation, asset
management, maintenance, and support and change management.
This report provides an overview of the MPS market landscape, the key suppliers in this space and how their
capabilities compare. Quocirca interviewed a range of MPS providers to understand their strategy in delivering
managed print services, their approach to delivery and their strategic focus on this area. This is not a definitive list of
all suppliers but a sample of the key players.
2 MPS evolution
The MPS market has evolved from the basic services of maintenance, supplies and fleet management to encompass
solutions for assessing, optimising and managing an enterprise-wide printing infrastructure. This is where most MPS
offerings fit today, although companies such as Xerox Global Services already offer a full range of enterprise
document services. Document process outsourcing relates to the on or off-site services which cover the complete
document lifecycle, from creation to storage and archival. Business process services enable documents to be
effectively integrated into the business workflow, for example by using software to improve the efficiency of both
paper and electronic document processes.
MPS providers who are able to also offer these types of enhanced document services will be able to drive further
business value by enhancing the fundamental cost savings of optimising the printing infrastructure. However, many
organisations still need to take the first step to optimise their print environment, which provides the foundation for
creating a wider enterprise document strategy.
Ongoing monitoring: post implementation monitoring of the print environment ensures that it is right sized
and that cost savings are monitored and ongoing. Consumption trends can be checked and savings further
optimised. This may take the form of regular review meetings for continuous improvement, SLA
measurement and reporting.
Services or consulting practices of printer and copier manufacturers (such as HP, Xerox, Canon, Konica
Minolta, Ricoh). These vendors‟ services practices are typically tightly tied to their product offerings and
include assessment, design, implementation and support services. MPS may also be offered by their
channel resellers where capabilities exist and are encouraged.
IT systems integrators/outsourcers (such as Accenture, EDS, Fujitsu Siemens Computers, CSC, Atos
Origin). These may partner with one or more printer manufacturers and service engagements may be part of
a wider desktop service offering.
IT mega vendors (IBM) who may approach managed print services as part of a wider green IT service
strategy.
Merger and acquisition activity will see organisations change their profile, such as the recent HP/EDS announcement
which, from an MPS point of view, moves the newly merged organisation into the mega vendor category.
Amongst these vendors, Xerox Global Services currently has the most established and broad MPS portfolio,
delivered through its Office Services (XOS) group, which is one of three service offerings that Xerox leads with in
large enterprise engagements. The other two are business process services (BPS) and document outsourcing and
communication services (DOCS). By having the capability to leverage the extended benefits of BPS and DOCS,
Xerox is positioned as one of the only providers to offer the full range of document lifecycle services. As such it is
already successfully engaging in the third generation of managed print services, which encompasses document
process outsourcing and workflow solutions.
Xerox has won some significant deals (for example the Department of Work and Pensions in the UK, a £400m,
seven-year contract); boosted by its strategic partnership with EDS. Xerox is actively enhancing its global alliance
partnerships, with CSC announcing in June 2008 that Xerox is now a global alliance partner, building on their existing
relationship, where Xerox provides CSC with document management services.
Meanwhile, HP is aggressively moving up the value chain, always seeking to increase its footprint in the corporate
printing market. It has developed a strong set of services and recently added document workflow capabilities to its
range of modular services. Its recent acquisition of EDS will add to its potential strength and will help it gain more
traction for its managed print services amongst the large enterprises. Lexmark is also an established MPS player,
particularly focusing on the productivity, financial and environmental benefits of business process optimisation. Its
distributed fleet management service is provided through its global services organisation and is based on its core
asset lifecycle infrastructure which enables it to provide global delivery of standardised services, which include
multivendor support.
Building on the success of local MPS engagements, Canon has developed a pan-European MPS strategy backed by
a cohesive range of services which can also be delivered globally. As Canon‟s European MPS organisation is still in
its infancy, its success in winning new customer engagements relies on the execution of the new teams at both a
local and European level. Whilst its direct model is its primary route to market, Canon as yet does not work with any
major IT service providers in a similar way to Xerox, HP or Ricoh.
Ricoh is actively enhancing its MPS capabilities and, whilst currently Ricoh‟s MPS is delivered on a regional basis in
Europe, Ricoh has already developed alliances with CSC and Atos Origin, giving it a strong position in IT service
engagements where the printing infrastructure is included.
Konica Minolta‟s iDOC consulting service is comprehensive in its capabilities but is focused primarily on Konica
Minolta products, with limited multivendor support. However, for those businesses that already have or are planning
to standardise on a Konica Minolta bizhub environment, the iDOC service would make the most of this investment
and enable the full benefits of its remote support and maintenance system be realised.
InfoPrint Solutions Company (a joint venture between IBM and Ricoh) currently offers bespoke managed print
services based on customer requirements in Europe. However it has recently announced a set of managed print
service offerings in the US and this is expected to roll out in Europe during the latter part of 2008.
Fujitsu Siemens Computers is one of the few IT service providers that work with a number of printer manufacturers.
It has built a robust set of print lifecycle services based on its overall managed office services capability, which adopts
a flexible out-tasking approach. IT service providers, unlike printer manufacturers, are not driven by page volumes
and consumable revenue, and also offer the IT infrastructure management expertise often not available through pure
MPS providers.
Pitney Bowes deserves a mention here despite its heritage in mailstream technology and document process
outsourcing. It is one of the only vendor-neutral providers of MPS and works with most printer and copier
manufacturers. It is actively investing in its PrintWorks print asset management service which has over 100
customers in Europe.
Figure 2 shows a sample of MPS providers positioned according to whether they are vendor independent or
printer/copier MPS providers, along with an indication of the breadth of the portfolio of MPS services they provide.
Fujitsu Siemens
Xerox
EDS
Canon, HP
IKON
Lexmark, Océ
Pitney Bowes
Ricoh
CSC, Atos Origin,
Konica Minolta
T-Systems
Vendor Printer/copier
independent vendor MPS
MPS
Lexmark
Siemens
Minolta
Konica
Fujitsu
Bowes
Canon
Pitney
Origin
Ricoh
Xerox
CSC*
Océ*
Atos
EDS
HP
Service
approach
Modular Modular
(Modular or Modular Modular Modular Full Modular Modular Full Full Modular Modular
/Full /Full
full
outsourced)
MPS Primary
Direct &
route to Direct Direct Direct Direct Direct Direct Direct Direct Direct Direct Direct
partners
market
Geographical
Global Global Global Global EMEA EMEA Global Global Global EMEA EMEA Global
delivery
More More Less More
No. European Approx Approx
than than N/D N/D than than 100-500 N/D 26-50 N/D
customers** 600 1300
100 1000 50 1000
EDS, IBM, Ricoh
Dell, IBM,
CSC, IBM, CSC, Ricoh Xerox
HP Fujitsu Ricoh
Alliances Local
internal Services,
N/D N/A Atos Deloitte, Global Xerox Kyocera
Xerox
Océ
Origin Capgemini Lexmark Fujitsu -
Siemens
(Global) Siemens
Av. Length of Up to 30-60
3-5 yrs 3-5 yrs 4 yrs 2 yrs 3-5 yrs 3-5 yrs N/D 3-5 yrs N/D 4 yrs
contract 5 yrs months
No. mega
deals 2007
2 N/D N/D N/D N/D N/D 10 1 N/D 2 N/D N/D
(more than
$25M)
Less Less Less
MPS Revenue $100m to $1m to
N/D N/D N/D than than N/D N/D than N/D N/D
Range $500m $5m
$100m $100m $100m
Growth on
50% N/D N/D N/D N/D N/D N/D 40% N/D N/D N/D 6%
previous year
N/D = not disclosed
* Please note that Océ and CSC were unable to verify details of their MPS offerings.
** Each MPS vendor defines an MPS customer differently and may relate to full or partial responsibility for an organisation‟s print
environment.
The following table provides an indication of the breadth of the portfolio of managed print services that they provide.
Key: Full capability No capability Limited capability/offered with partners Not known
Atos Origin
Siemens
Lexmark
Minolta
Konica
Bowes
Fujitsu
Canon
Pitney
Xerox
Ricoh
CSC
EDS
Océ
HP
Assessment
Level 1 – Basic
Level 2 – Assisted
Level 3 - Consultative
Workflow analysis
Implementation
Multivendor procurement
Fleet optimisation
Deployment planning
Installation (IMAC) integration
Project management
Management
Fleet management
Asset management
Multivendor management
Consumables management
Billing and accounting
End-user services
Help desk
On-site support
Training
Maintenance and support
Multivendor
Remote monitoring (own equip) N/A N/A N/A
Remote monitoring (third party)
Proactive supplies mgmt
Services portal
Change management
Training and communications
Monitoring
KPI\SLA Measurement
Reporting
Contract Management
Print room services
rd
In house/3 party print-room
Contract/pricing
Flexible SLA
Fixed SLA
Flexible pricing model
6 Recommendations
As organisations continue to optimise their IT infrastructure, reduce costs, improve efficiencies and lower the
environmental impact of their business, controlling and managing the print environment will become a more vital
element for achieving all these aims. Although the MPS market is still evolving, the best positioned MPS providers
will be those who offer a broad portfolio of services and can translate the significant cost savings of optimising the
printer fleet to further enhance document workflow processes as organisations move into the next phase of their
enterprise document strategy.
Green IT remains a hot topic. Green IT has been given significant exposure by IT vendors and service
providers, not least in the area of data centre virtualisation. MPS should be positioned to support greener
business practices providing tools that not only demonstrate the financial savings but also the environmental
benefits of optimising the print environment. MPS providers should look to partner with vendors who can
complement their current offerings, either from an IT or print management perspective.
Assessments underpin a successful MPS engagement. Most IT outsourcing engagements begin with an
initial assessment of the IT infrastructure. Whilst many organisations may have conducted this for the rest of
their IT operations, the print environment is often neglected. IT service providers should work closely with
print partners to leverage their expertise in conducting these complex print assessments, emphasising the
importance of alliances between manufacturers and IT outsourcing providers.
Standardisation is the key to long-term MPS engagement. Given the fact that most organisations will
have sourced their current fleet from multiple vendors, the advantage of supporting a heterogeneous
environment in the initial stages of a MPS engagement cannot be overstated. However, maintaining many
vendor relationships will prevent organisations benefiting from economies of scale, and can create
inefficiencies, as well as higher IT support costs. In the long term, a standardised environment is the most
cost effective and efficient to manage. However, standardised technology must be flexible and open enough
to integrate with new software and solutions as the business changes.
Flexible service level agreements (SLAs) will shape successful ongoing MPS engagements. SLAs are
an essential part of any outsourcing project. Whilst IT service providers will have already developed a best
practice approach to SLAs through existing outsourcing engagements, emerging MPS providers will need to
ensure that SLAs are flexible, promote risk and reward sharing, and create benefits for both parties. Metrics
should not only relate to uptime of devices but also to user productivity. An effective SLA can help to ensure
that the MPS provider is helping the customer meet or surpass both business and technology service levels,
which in turn leads to increased productivity.
Integration with IT management software will enhance the value of MPS engagements. Today, MPS
capabilities are limited to proprietary document accounting and reporting tools which give a view solely of
the print environment. As other parts of the IT infrastructure are typically managed by standardised system
management tools, tying print management and reporting tools to those used for IT management represents
an opportunity for the print environment to be viewed and controlled more holistically. Such tools could
include overall carbon measuring and reporting capabilities, and can also be tied into ERP systems for
service and procurement.
Supporting business processes represents a real opportunity. Utilising document workflow solutions
as part of a MPS engagement enables both paper and electronic documents to be more tightly integrated
into business processes. Just a few MPS providers offer this capability at present, but, as more
organisations begin rationalising their print environment, business process services will offer them further
potential to reduce costs and use the document production environment as an enabler for improved
business workflows.
Focus on document security through secure printing solutions. Many print manufacturers already offer
a range of secure printing solutions such as authenticated or “follow-me” printing. As security remains high
on the IT agenda, MPS providers should encompass such secure printing applications within their MPS
portfolio.
How well does the scope of services match your business needs? Does the MPS provider offer a wide
range of services such as asset optimisation, supplies management, help desk support and user training
that match your specific requirements?
Does the vendor have a proven record of satisfied MPS customers? How long has the provider been
offering managed services? How many devices are currently under management? Can the provider offer
customer references?
Does the provider offer a detailed assessment of the print environment? Is an established
methodology used? What scalability is offered in terms of depth and cost of assessments? What is the
opportunity for ongoing tracking of assets, costs and usage?
Are best of breed equipment and solutions supported? Does the MPS provider support or offer a wide
range of monochrome and colour printers, MFPs, or cater for specialised output needs such as high speed
colour printing for graphics arts environments? What types of tools are used to monitor and manage the
entire output fleet? Does the provider offer solutions for document workflow, secure printing or
customisation services for specific business needs?
Is a multivendor environment supported? Does the provider offer support and manage devices from
multiple vendors? What strategic relationships does it have? Can your existing equipment, spares and
consumables be retained or will new equipment purchases be necessary?
How flexible is the MPS agreement? Can you start with a limited engagement and add services as
business requirements evolve? Can new technology be integrated into the service package? How flexible
are the provider‟s billing methods in terms of monthly volumes or cost-per-page?
What types of SLAs are available? Are service levels matched to your needs (hours of service, problem
resolution times, end-user productivity)? How does the provider handle service events in a multivendor
environment? How is problem resolution handled? Is a pre-emptive service approach used to reduce
response times and solve device problems? Is onsite or off-site support available?
What are the geographical delivery capabilities? Does the MPS provider have a global footprint –
national and international – that matches your business? What resources are available on a global or local
level?
What communication approach is taken? Does the provider conduct regular meetings with you? Does it
establish a clear matrix of roles and responsibilities within your organisation and the MPS provider? What
change management methodologies and processes are used?
Does the provider articulate a green strategy? What solutions do they offer to help you enhance your
environmental credentials such as reducing power usage and paper wastage?
Canon Europe employs in the region of 11,000 people across 19 countries. Further information
about Canon Europe is available at: www.canon-europe.com
Fujitsu Siemens Computers is the leading European IT Infrastructure Provider with a strategic focus
on next-generation Mobility and Dynamic Data Center products, services and solutions. With a
platform and services portfolio of exceptional depth, our offering extends from notebooks through
desktops to enterprise-class IT infrastructure solutions and services offerings. Fujitsu Siemens
Computers has a presence in all key markets across Europe, the Middle East and Africa, with
Infrastructure Services extending coverage approximately 170 countries worldwide. Leveraging the
strengths, innovation and global reach of our joint shareholders, Fujitsu Limited and Siemens AG,
we make sure we meet the needs of customers: large corporations, small and medium enterprises
and private users. The company is a pioneer in providing environmentally conscious technology and
processes, throughout the lifecycle of each product, and is a member of the Climate Savers
Computing Initiative and Green Grid organizations. To meet stringent international standards for
corporate social responsibility, Fujitsu Siemens Computers is a member of the United Nations
Global Compact.
For more information on Fujitsu Siemens Computers, please visit: www.fujitsu-siemens.com, for
Corporate Social Responsibility please see www.fujitsu-siemens.com/aboutus/sor/index.html.
HP focuses on simplifying technology experiences for all of its customers – from individual
consumers to the largest businesses. With a portfolio that spans printing, personal computing,
software, services and IT infrastructure, HP is among the world‟s largest IT companies, with revenue
totalling $110.4 billion for the four fiscal quarters ended April 30, 2008. More information about HP
(NYSE: HPQ) is available at http://www.hp.com.
Konica Minolta Business Solutions Europe GmbH is a leading provider of image information
products with subsidiaries and distributors in more than 50 countries in the EMEA region. The
company places major emphasis on the document management and solution business in the office
and production environment, especially in the field of colour output as well as related supplies.
Konica Minolta Business Solutions Europe is a subsidiary of Konica Minolta Business Technologies,
Inc., headquartered in Tokyo, Japan. With a total workforce of 21,000 employees worldwide, Konica
Minolta Business Technologies gained net sales of over 4.4 billion Euros in fiscal 2006/2007.
Building on its strong core of optical technologies developed over many years as a printer and
camera manufacturer, Konica Minolta
Business Technologies aims to be a corporation offering products and services that are essential to
all areas of digital imaging. www.konicaminolta.eu
Ricoh designs, develops and manufactures a complete range of print and document management,
hardware, software and services which are tailored to meet individual customer needs. Its devices
print, copy, scan and fax documents as an integrated part of the IT network and enterprise content
management system. Software is used to audit usage, manage document flows, simplify business
processes, control print expenditure and secure access. The company takes an innovative approach
to research and development, having invented the first digital black & white copier and introducing
the colour-capable device.
Ricoh UK‟s environmental credentials are second to none. It operates a zero-waste policy at all of its
manufacturing plants and maintains carbon-neutral status at its headquarters in Feltham, Middlesex.
It operates a dedicated „Green Centre‟, where old machines are re-commissioned and recycled in
line with WEEE Directive guidelines, and has been accredited with ISO14001 for environmental
management.
Xerox Corporation (NYSE:XRX) is the world's leading document management technology and
services enterprise. A $17 billion company, Xerox provides the document industry's broadest
portfolio of offerings. Digital systems include color and black-and-white printing and publishing
systems, digital presses and "book factories," multifunction devices, laser and solid ink network
printers, copiers and fax machines. Xerox's services expertise is unmatched and includes helping
businesses develop online document archives, analyzing how employees can most efficiently share
documents and knowledge in the office, operating in-house print shops or mailrooms, and building
Web-based processes for personalizing direct mail, invoices, brochures and more. Xerox also offers
associated software, support and supplies such as toner, paper and ink.
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