Trends in Managed Print

October 2, 2014 1:00pm CT

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 Join the Managed Print Services
Community TODAY!!
• You’ll have access to all the resources
available.
– On-demand webinar “Metrics to Measure Your
MPS Business” by Ken Stewart
– InfoTrends Presentation from ChannelCon
community meeting
• Go to comptia.org > membership >
communities > Managed Print Services
 2014 Executive Council
Chair West McDonald Print Audit & FocusMPS
Vice Chair Gus Yusem Xerox Some people
Executive
Council Frank Avsenik Samsung Canada want it to
Executive
Council Jeff Bendix Bendix Imaging happen,
Executive
Council Kevin DeYoung Qualpath some wish it
Executive
Council Jon Hafey Toshiba to happen,
Executive
Council Steve Lu Synnex others make
Executive
Council Ken Marx Barrister it happen.
Executive Sam Moore Lexmark
Council
Executive Gordon Snider Clover Technologies
Council
Executive Tawnya Stone GreatAmerica
Council

© 2014 CompTIA Properties, LLC 5

 Community Initiatives
 Form strategic partnerships with Photizo, BTA, InfoTrends and
MPSA
 Collaboration between organizations
 Create a value proposition video for Managed Print Trustmark
holder to use with clients – vetting stage
 Webinar and Fact Sheet on BPS-BPO Continuum – completion
in Q4
 Ongoing community recruitment
 Ongoing Managed Print Trustmark recruitment

6
 Upcoming Webinar and 2015 Events
• Managed Print Services Community Webinar: The BPS-
BPO Continuum
– Using the Kano Model we examine the skills and solutions
needed to win customers of various sizes. Join this webinar to
walk away with a clear understanding of the services and skills
that you need to move through the BPS BPO Continuum.
– October 21, 2014 1:00 PM CT
• Annual Member Meeting
– March 24-26, 2015
– Ponte Vedra, Florida
• ChannelCon
– August 3-5, 2015
– Chicago, Illinois

7
Managed Print
Trends Research
Study Review

Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
On Tap for Today

1. State of the Market

2. Drivers & Opportunities

3. MPS Areas for Improvement

 Part 1
State of the Market

Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
Last year, nearly 3 trillion pages were
printed worldwide using a desktop or
multi-function print device…

Source: IDC
Profiling the Office Print Environment

Firms’ Print Volume Self Assessment

98% of end users report printing at
34%
33% least once per quarter during the past year

22% Reported Device Penetration Rates

76% Shared multi function printer/copier
64% Shared ~single function printer
11%
58% Personal ~single function printer

Color Print Profile

Very high Moder- Mid-level Low 38% Color default option
volumes ately high volumes volumes
43% B/W default; color an option
volumes
44% Color limited to specialty printers
Impact of Tablets/Smartphones on Print Volumes

Reported Impact of Tablets/ Segments Significantly Reducing

Smartphones on Print Behavior Printing due to Mobile Devices

24%
40% 39% MPS

27% adopters

Segment with
very high print
volumes
21%

43%
Segment most
seriously pursuing a
Significant Modest No real less-paper office
reduction reduction impact
in printing
Overall, High Satisfaction Rates with Print Function;
However, Users Do Cite a Number of Annoyances

Troubleshooting paper jams 75%

Replacing ink/toner 74%

Waste, e.g. paper waste 41%

Network related issues 35%

Repair issues requiring professional service 34%

Challenges in using features, e.g. collate, scan 22%

Adding/mapping new print devices 19% Printer Reliability Assessment

19% Near 100% uptime of printers
Inability to print from mobile devices 18% 65% Good uptime ~90%
Lack of visibility into print costs, activities
15% Okay uptime ~80%
18%
Customer Assessment of Print Service/Support
Large firms Medium firms Small firms

33%
Print service/support fine as is 45%
36%

61%
Could be somewhat better 53%
59%

6%
Could be significantly better 2%
5%
Reported Adoption of Managed Print Services
Small Firms Medium Firms Large Firms

79%

61%
56% of firms with high
53%
print volumes report being
47% MPS adopters
40%

21%

No Adoption / MPS Adoption

Don't know
MPS Satisfaction Ratings Among MPS Adopters
MPS Satisfaction Rating NET Satisfaction with MPS Elements

90% Consistency and reliability of service

58% 90% Quality of customer service

87% Freeing up staff time
84% Reporting / visibility
26%
83% Speed of service / support
81% Reduction in waste (e.g. paper, toner)
15%
80% ROI / cost savings realized

Very satisfied

Mostly satisfied

Partly satisfied
Managed Print Service Provider Profile

Rating of Managed Print’s % of Firm Revenue

Position Within Business Derived from MPS

65%

48%

43% 18%
16%
9%
More About Less
than half half than
Early stage Strategic Opportunistic half
MPS Market Entry Factors
Weighted Rank Order of Reasons
for Entering MPS Space
Rank order for firms where MPS
Is considered CORE to their business
1. New revenue opportunity / business line extension
2. In response to customer demand
34%
3. Transition from break/fix to recurring revenue
30% 4. Defensive strategy against OEMs, copiers dealers, etc.

Rank order for firms where MPS is

12%
considered OPPORTUNISTIC
23% 1. In response to customer demand
2. New revenue opportunity / business line extension
3. Transition from break/fix to recurring revenue
New revenue opportunity / business line extension 4. Defensive strategy against OEMs, copiers dealers, etc.
In response to customer demand
Transition from break/fix model to recurring revenue
Defensive strategy against OEMs, copiers dealers, etc.
 Part 2
Drivers & Opportunities

Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
MPS Outlook from Industry Experts

The consultancy Research and Markets predicts the global managed print
services (MPS) market will grow at a compound annual growth rate (CAGR)
of 10.75% from 2012 to 2016.

Similarly, IDC predicts a near doubling of the global market for managed
and basic print services between 2010 and 2015. The firm expects
revenues to climb from $23.5 billion to $40.5 billion during the period.
Note: IDC pegs the MPS market as a subset, with annual worldwide
revenue of $11.7 billion in 2012.

InfoTrends forecasts a slightly more conservative growth trajectory, with an

expectation for worldwide managed print growth of 6.7% CAGR from 2012-
2017. They project revenue of approximately $20 billion in 2012, $25
billion in 2014 and $28 billion in 2017.
1 in 3 MPS Providers Expect Significant Market Growth
Factors contributing to growth – from perspective of MPS providers

Growing customer awareness of MPS 55%

Improvement in operations / getting better at

delivering MPS profitably 50%

Investments in sales/marketing leading to new

customers 45%

Improving economy / customers in better

position to spend 44%

High growth in specific verticals such as

healthcare or legal services
39%
MPS Growth Projections
34% Significant growth (10%+)
New partnership with vendor, other MPS etc. 36% 53% Modest growth
12% Flat or declining growth
Familiarity with Managed Print on the Rise?

End User Self Reported Familiarity with MPS 31%

Small firm

38% familiarity

28% LOB NET

27% familiarity
with MPS
23%
21%
65%
IT NET
familiarity
with MPS

Very Mostly Somewhat Mostly

familiar familiar familiar or very
unfamiliar
18% in 2011
MPS Adoption Intent Among Non-Adopters
14%
Received a
MPS

MPS Intent Among Non-Adopters 24% assessment

Researched
MPS
36%
33%
42%
Internal
discussion –
18%
how to improve
print process

6% 7%

34% of non-MPS adopters

Definitely Probably May or Probably Definitely reported receiving an offer of a
not not may not consider consider MPS assessment during past 2
years; 10% went through with it.
 Steps Taken to Improve Print Among Non-MPS
Adopters
Internal discussions on ways to improve the print 52%
function or reduce print costs 26%

28%
Researched the concept of managed print services
16%

Received a managed print services assessment and 15%

proposal At Least Somewhat
13%
Dissatisfied with Print
16%
Met with / talked to MPS provider Satisfied with Print
11%
Function
Asked colleagues using managed print for 17%
information or recommendations 8%

26%
None of the above
51%
Top Drivers of Managed Print Adoption
Note: rank order listings are useful for summary purposes, but should NOT be interpreted quantitatively. For
example, the first ranked item is not necessarily 10 times more important than the tenth ranked item.

1. Improve consistency and reliability of print service

2. ROI / cost savings
3. Freeing up staff time currently spent on printer support
4. Proactive approach to service and support
5. Reduction in wasted paper, supplies and energy consumption

6. Simplified, consolidated billing from a single vendor

7. New capabilities such as document management or BPA
8. Reporting / visibility into printing activity, costs, etc.
9. Consolidation and streamlining of an unmanaged printer environment
10. Enhanced security / compliance
KANO Model Managed Print Services Mapping Excitement
Delight when present, but no
 SLA based
performance
dissatisfaction when absent
metrics (5)
Delighted  Toner & power
 Reporting (5) opt. (5)

 Proactive  JIT supply

fulfillment (5)
service (5) Performance Needs
 Toner & power Proportional increase/decrease
opt. (5) in satisfaction or dissatisfaction
Satisfied with performance
 JIT supply
 JIT supply  Fleet optimization fulfillment (4)
fulfillment (1) (4)  Fleet optimization
 Toner & power (4)
opt. (1)  Flexible billing (5)  Competitive
 Flexible billing (1) pricing (3)  Proactive
 Competitive service (3)
Neutral  Full assessments pricing (3) Basic Needs
 Proactive  SLA based
(1)  Competitive service (3) performance Expected – no additional
 Fleet optimization pricing (3) metrics (3) satisfaction when present, but
 Fleet coverage (3)
(1) dissatisfaction when absent
 Reporting (3)  Fleet coverage (3)  SLA based
 Reporting (3)  Fleet coverage (3) performance
metrics (3)
 Full assessments
 Flexible billing (3)
(3)
 Full assessments
Disappointed (3)
Small customers
Mid-size customers
Enterprise customers

Dissatisfied
Not implemented / executed Fully implemented / executed
Top Inhibitors of Managed Print Adoption
Note: rank order listings are useful for summary purposes, but should NOT be interpreted quantitatively. For
example, the first ranked item is not necessarily 10 times more important than the tenth ranked item.

1. Skepticism over cost savings / ROI

2. Concerns about bringing functions back in-house if MPS doesn't work out
3. Concerns about disruption while transitioning to managed print services
4. Perceived loss of control by IT or operations staff
5. Difficulty in finding/evaluating a quality managed print provider

6. Reluctance to outsource the print function to an outside company

7. Lack of need – satisfaction with current print performance, costs, etc.
8. Lack of understanding of how MPS works in a real world setting
9. Lack of priority among senior staff
10. Overcoming a past negative experience with MPS or IT outsourcing
Mobile Device Print Still in Early Stages
Reported Incidence of Mobile Print Mobile Print Utilization
Capabilities in Place at Company [among customers with mobile print capabilities in place]

59%
37%

28%

30%

34%
12%

Yes, mobile print capability in place

Frequently Occassionally Rarely
Not in place, but planning to implement or Never
Not in place; no plans
Many Businesses See a ‘Green Element’ in Print
Association Between Green IT and Print
Firms with Low Print Volumes
Somewhat High Volumes
Firms with Very High Print Volumes
MPS adopters are 77% more
64% likely to associate green IT with
54%
52% print compared to non-MPS
adopters
37%
33%

19%
17%
13%
11%

No Somewhat High degree

 The Role of Trustmarks in Customers’ Evaluation of
MPS
Potential Impact of a Trustmark for
Customers Evaluating MPS Providers

48%

30%

20% CompTIA MPS Trustmark Key Value

Propositions from Perspective of MPS Providers
1. Validation of MPS expertise to customers
1% 2. Mechanism to evaluate internal MPS operations /
follow best practices
NET not a May or may Probably a Definitely a
factor not be a factor factor in 3. Differentiator
factor MPS
decision
 Part 3
MPS Areas for
Improvement

Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org
MPS Provider Self-Assessment Summary
Self Assessment Summary [Segmentation 1] Self Assessment Summary [Segmentation 2]
MPS Rated Opportunistic Small MPS Providers
MPS Rated Strategic Medium MPS Providers
Large MPS Providers

58%
55%
50%
47% 48%
44%
42% 41%
CompTIA MPS Trustmark Value Proposition
31% 1. Validation of MPS expertise to 30%
customers
2. Mechanism to evaluate internal MPS
operations / follow best practices
15%
11% 10% 3. Differentiator
9% 8%

Not that close / Somewhat Very close to Not that close / Somewhat Very close to
significant room close where want to be significant room close where want to be
for improvement for improvement
MPS Self-Assessment Reveals Areas for Improvement

1. Partner selection
2. Account monitoring
Close to where
want to be in 3. Staffing
skill/execution
4. Goal Setting
5. Software installation (DCA)

16. Contracts

Not as close to 17. Leads development

where want to be 18. Change management
/ room for
improvement 19. Consultative selling
20. Compensation
 MPS Strategic MPS Opportunistic
Very close Very close
Not that Somewhat to where Not that Somewhat to where
close close want to be close close want to be

Staffing 8% 35% 58% 14% 53% 33%

Partner selection 7% 36% 57% 9% 52% 39%
Account monitoring 5% 38% 57% 8% 56% 36%
Software installation (DCA) 9% 37% 54% 5% 64% 31%
Goal Setting 7% 39% 54% 8% 58% 34%
Leasing/Financing MPS contracts 10% 38% 52% 15% 57% 28%
Contracts 14% 37% 49% 18% 56% 26%
Toner fulfillment efficiency 12% 39% 49% 8% 59% 33%
Fleet optimization 13% 39% 49% 10% 59% 31%
Lead development 11% 42% 47% 14% 59% 27%
Billing 11% 43% 46% 7% 55% 38%
Hiring 7% 47% 46% 16% 50% 34%
Service efficiency 13% 41% 46% 12% 46% 42%
Separate P & L 9% 46% 45% 9% 70% 21%
Assessments 10% 46% 44% 11% 51% 38%
Compensation 14% 42% 43% 9% 73% 19%
Collections 10% 48% 42% 15% 52% 33%
Change Management 12% 50% 37% 10% 62% 28%
Consultative selling 9% 54% 37% 14% 62% 24%
Funnel management 13% 51% 36% 12% 68% 20%
MPS Provider Self-Reported Training Needs

MPS sales training 52%

MPS technical training 50%

Project management training 48%

Business management training (e.g.

42%
managing business transformation)

None of the above – no immediate need

12%
for additional training
Segmentation of MPS Provider Offerings/Capabilities
MPS Strategic MPS Opportunistic
Provide Provide NET Provide Provide NET
Indirectly Directly Provide Indirectly Directly Provide
Automated supplies replenishment 36% 54% 89% 33% 30% 63%
Document scanning and routing 24% 65% 89% 32% 42% 74%
Guaranteed service level response times 30% 58% 88% 28% 39% 67%
Onsite repair / maintenance 31% 56% 87% 41% 30% 71%

Cost control / reduction recommendations 24% 63% 87% 31% 42% 73%
Enhanced security 23% 63% 86% 36% 33% 69%
Detailed usage reports / print visibility 21% 66% 86% 26% 42% 68%

Customer portal/web interface 30% 55% 85% 28% 39% 67%

Remote management 30% 54% 84% 38% 31% 70%
Workflow automation 21% 62% 83% 30% 29% 59%
Multi-vendor support 32% 50% 82% 34% 33% 67%
Standards enforcement / governance 30% 51% 81% 31% 35% 66%
Fleet mapping, standardization and right sizing 24% 55% 79% 24% 30% 54%
Environmental benefits support 18% 61% 79% 24% 42% 66%
Detailed assessment / onsite walk-through 22% 56% 77% 31% 30% 61%
Mobile device printing support 22% 54% 76% 32% 26% 58%
Closing Thoughts

• Research confirms a number of positives, as well as

some structural challenges

• Leveraging opportunities requires a nuanced approach

• MPS firms generally optimistic about the market;

achieving gains will likely require improvement on the
operational, sales or strategic front
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Thank You
Tim Herbert
VP, Research & Market Intelligence
therbert@comptia.org

Copyright (c) 2014 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org