Quocirca Printer Pulse June 2011

8/6/2019 Quocirca Printer Pulse June 2011

1/14JUNE 2011

expensive and ine-

cient for businesses,

parcularly as manysmaller businesses have

limited resources to

carry out admin and

support tasks.

Quocirca believes that

the next year will see

more midmarket busi-

nesses engaging in MPS

contracts. The SMB

market might be a hard-

er nut to crack as it ishighly reliant on reseller

resources and skills to

sell MPS contracts in

favour of the transac-

onal sale. However,

many vendors are em-

barking on MPS channel

training programmes to

ensure that their re-

sellers can deliver MPS

using the vendors host-

ed MPS infrastructure.

But although the tools

and infrastructure for

resellers are certainly

thereit remains to be

seen how ready and

recepve the channel

will be to this new way

of selling prinng, rather

than printers.Louella Fernandes

Principal Analyst

he MPS market

has seen a waveof consolidaon with

Xerox and HP both ac-

quiring compa-

nies which will boost

their capabilies in the

midmarket.

Xeroxs acquision of

NewField IT is essenally

a formalisaon of an ex-

isng relaonship. Xeroxhas for some me been

using Asset DB, its ag-

ship product, as part of

its assessment and op-

misaon services within

the Xerox Partner Print

Services (XPPS) pro-

gramme. Meanwhile,

HPs acquision of

Printelligent provides it

with an established set ofmul-vendor services

and tools for its channel

to deliver MPS to its end-

customers. A full analysis

can be found on page 10.

A less high prole acqui-

sion was the purchase

of Document Express, a

UK-based Xerox conces-

sionaire and MPS provid-

er by Danwooda $10M

revenue, leading MPS

provider in the UK.

The market is certainly

heang up, and the

SMB and midmarket isthe new baleground

where vendors are

striving to gain share.

These channel-led mar-

kets represent a huge

opportunity for vendors

and their resellers to

capture ongoing reve-

nue opportunies

through selling a mix of

basic MPS contractswhich include hard-

ware, service and sup-

port to more sophis-

cated engagements

which include assess-

ment and opmisaon

of more complex mul-

vendor environments.

It will not be an easy

transion for the IT

reseller channel, who

are used to selling hard-

ware on a transaconal

rather than on a con-

tractual basis. But by

doing this they are

missing out on the op-

portunity for recurring

consumable sales as

most customers tend to

purchase supplies and

consumables on an ad-

hoc basiswhich is

S M B A N D M I D M A R K E T P U S H S P U R S M A R K E T

C O N S O L I D A T I O N

Quocirca Printer Pulse

JUNE 2011

INSIDE THIS ISSUE:UNBURDENING

THE CIO: THE

BUSINESS VALUE

OF MPS

2

ENDPOINT SECU-

RITY: ERASING

THE PRINTER

THREAT

4

WILL

SMARTPHONES

HERALD THE ERAOF UBIQUITOUS

PRINTING?

6

HPs VISION for

CLOUD and MO-

BILE PRINTING

8

PITNEY BOWES:

TRYING TO PUT

ITS STAMP ON

THE SOFTWRE

WORLD

10

THE BATTLE FORCHANNEL MPS

HEATS UP

12

CONTACT

For further informaon

on Quocirca or its ser-

vices please contact:

Louella [email protected]

Tel: 07786 331924

www.quocirca.com

T


2/14JUNE 2011

CIOs have

long been

focusing on

making IT a driver for

growth, using strategies

such as IT consolidaon

and simplicaon to cre-

ate business value with

limited spend. Frequent-

ly, prinng is an aer-

thought when it comesto controlling and man-

aging IT costs.

Despite the abundance of

printed communicaons

across businesses of all siz-

es, few CIOs are aware of

the cost, complexity or risk

of operang an unmanaged

print environmentall of

which can be migated

through using a managed

print service (MPS).

The reality that faces many

businesses is a print envi-

ronment that is out of con-

trol. A patchwork of devices

from dierent manufactur-

ers requiring dierent sup-

plies, service contracts and

soware means that it is

almost impossible to have a

single view of what is being

printed, by whom and

where. Whilst todays mul-

funcon peripherals

(MFPs) are sophiscated

document processing hubs

which can capture, print,

copy and store with speed

and convenience, their net-

work connecvity and abil-

ity to store data on hard

drives brings inherent secu-

rity risks.

Failure to protect and

manage these devices

can leave an organisa-

on exposed to both

spiralling costs as well

as security risks.

Some enterprises are

now turning to MPSto

reduce the cost, com-

plexity and risk associ-

ated with an unman-aged print infrastruc-

ture. It is esmated that

up to 30% can be saved

on prinng costs

through the use of

MPSbut the value can

extend well beyond the

basic cost. MPS can

create business val-

ueby using exisng

resources more produc-

vely, allowing a busi-ness to focus on core

competencies while

outsourcing non-core

prinng funcons such

as service and support.

As well as providing

exibility, skills and

technology, MPS can

also improve the pre-

dictability of expendi-

ture on an Opex basis

while removing thehardware costs from

the Capex budget.

MPS provides an assess-

ment of the exisng

device eet, analysing

print usage and then

determining a consoli-

daon and on-going

management strategy

that aims to maximise

producvity while re-ducing costs. Sharing

fewer devices amongst

more users, replacing

out-dated single func-

on printers with MFPs

and implemenng

workow soluons can

all help reduce both

nancial and environ-

mental costs, ghten

document security and

boost ulisaon rates.

Centralised manage-

ment tools oer re-porng and auding

capabilies which pro-

vide enterprises with

the visibility they need

to understand print

costs.

Quocirca esmates that

around 20% of enter-

prises have adopted

some level of MPS, with

more businesses begin-ning to evaluate it. To-

day the market is highly

compeve and domi-

nated byXerox and HP.

Both companies conn-

ue to expand their

oerings in a bid to

capture enterprise

mindshare. But despite

the clear benets of

MPS, it has yet to reach

the radar of prioriesfor the majority of CIOs,

for whom prinng is

oen the poor relaon,

sing on the periphery

ofthe IT infrastructure.

This could be about to

change as CIOs are in-

creasingly focused on

technologies and modu-

lar services which can

be deployed cheaply,scaled quickly and easily

adapted.

U N B U R D E N I N G T H E C I O : T H E B U S I N E S S V A L U E

O F M A N A G E D P R I N T S E R V I C E S

Page 2P R I N T E R P U L S E J U N E 2 0 1 1

Mulfuncon

devices pose the

same security

risks as any

other networked

device.


3/14JUNE 2011

Quocirca believes the fol-lowing three CIO priories

can be achieved through

MPS:

Reducing costs: Tech-

nologies such as virtu-

alisaon, cloud com-

pung and managed

services all allow busi-

nesses to adjust costs

and resources quickly,

as required. As a corepart of a managed

services strategy, MPS

can deliver high per-

formance whilst help-

ing to control costs

and allow companies

to benet from an

opmised print infra-

structure with mini-

mal (or oen no) capi-

tal investment. MPS

can be scalable andbenets companies of

all sizes.

Reducing risk: Infor-

maon security is high

on the agenda for

every CIO, yet few

appreciate the risks

that todays advanced

MFPs bring. Without

taking the correct con-trol of the print envi-

ronment, businesses

are leaving them-

selves wide open to

condenal or sensi-

ve data being lost or

hijacked. These risks

can be easily migat-

ed by implemenng

soluons such as pull

prinng which en-

sures documents areonly released on au-

thencaon, en-

crypng hard drives

of MFPs and auding

usage of features

such as scan to email,

print or copy.

Enterprise mobility:

Mobility soluons

should become a key

component of MPS,

as an esmated 60 to

80% of employees

are mobile workers

whether on the road

or working from

home. Soluons such

as pull prinng and

universal print drivers

enable employees to

access documents

from any locaon

within a managed

print environment.

Meanwhile, soluons

such as ePrint from

HP provide direct

mobile prinng capa-

bilies. These types

of soluons can be

wrapped up within

MPS, and enable en-

terprises to provide

their employees with

the highest level of

print producvity.

Businesses now have a

growing choice of MPS

oerings from vendors

such as Canon, HP,

Lexmark, Ricoh and Xerox.

When evaluang provid-

ers businesses need to be

aware that cost is only

one issue, with risk mi-

gaon and value creaon

being just as important.

Therefore, enterprisesshould pay close consider-

aon to the skills, perfor-

mance, SLA exibility and

customisaon capabilies

of any potenal provider.

T H E B U S I N E S S V A L U E O F M P S


Read Quocircas

latest report on

the MPS market:

MPS Comes of

Age.
http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912


4/14JUNE 2011

Endpoint security

is a crical part

of any organisa-

on's data-loss

prevenon strategy,

yet networked printers

oen present intruders

with an open door.

Most rms understand thatsecuring network endpoints

against the risk of accidental

or deliberate security

breaches is important. But

while most companies have

anvirus soware, rewalls,

email and web-content se-

curity to protect against

external threats, few realise

that unsecured networked

printers and mulfuncon

peripherals can exposeholes in their informaon

security coverage.

The recent data breach at

the City of York council over

sensive informaon being

distributed aer being inad-

vertently collected from a

shared printer highlights the

security vulnerabilies in-

herent in the use of shared

printers.

The move to shared printers

is oen the result of device

consolidaon performed

under a managed print ser-

vices contract, which aims

to reduce the spiralling

costs of an unmanaged

printer estate by replacing

desktop and personal print-

ers with advanced mul-

funcon peripherals.

Such devices oen operate

as sophiscated docu-

ment-processing hubs

with capabilies to scan

to email or le desna-

ons, as well as holding

copies of documents

sent for prinng on lo-

cal hard disk drives in

addion to the stand-

ard funcons of print,

copy and fax.

While mulfuncon

peripherals have

brought speed and con-

venience to the oce,

more than oen they

are unmonitored and

unsecured, allowing

sensive or condenal

data to fall into the

wrong hands, either

intenonally or inad-

vertently.

Points of vulnerability

include output trays

where documents may

be le unclaimed and

the data stored on the

internal hard disk

drives. Fortunately,

there are simple ways

of migang these

risks, either using built-

in security features oradvanced security op-

ons, depending on the

level of security need-

ed.

The security landscape

for prinng is complex

and characterised by a

mix of manufacturer

soware tools and third

-party products. A mul-

funcon peripheral's

built-in security fea-

tures may include inte-

grated hard disk drive

overwrite capabilies that

enable the automac eras-

ure of sensive data from

the printer's hard disk

aer the le has been pro-

cessed.

Advanced products may

oer hard disk encrypon,

which enables address-

book data, authencaoninformaon, archived doc-

uments and so forth to be

encrypted before being

saved to the hard disk. For

enhanced security, docu-

ment data can itself be

encrypted during trans-

mission. Canon, for in-

stance, through its uniFlow

tool, can also detect the

type of document being

printed and determine ifthe user actually has the

rights to print the job.

One of the easiest ways to

eliminate the common

problem of unclaimed out-

put in printer trays is

through user authenca-

on or pull prinng. Au-

thencaon can be

through user ID, smart-

cards or biometrics andcan be enabled either

against the mulfuncon

peripheral or an external

authencaon server such

as Microso's Acve Direc-

tory.

Pull prinng enhances

security by releasing docu-

ments only when users are

physically at the printer.

But there are other bene-

ts. Where pull prinng is

shared among a pool of

E N D P O I N T S E C U R I T Y : H O W T O E R A S E P R I N T E R

T H R E A T


Mulfuncon

devices pose the

same security

risks as any

other networked

device.


5/14JUNE 2011

printers, it also promotesmobility by allowing users

to release documents at

any convenient printer and

reduces waste by elimi-

nang unclaimed output.

Probably the cheapest

opon is user authenca-

on, which is enabled by

embedded technology at

the device level and con-

trolled by the device driv-er. This soluon is oen

the least expensive opon

because it is a standard

feature on devices such as

those from Canon, HP,

Ricoh and Xerox.

Third-party products from

vendors such as Equitrac

and SafeCom also oer job

-roung to alternave de-

vices and can also operateacross a mixed eet envi-

ronment.

However, third-party prod-

ucts may have limitaons

for diverse printer eets

that use diering printer

languages and drivers

which can lead to incon-

sistent output reliability

depending on which print-

er a job is released at. Forinstance, if a print job is

submied to a queue with

specic requirements such

as stapling, it can only be

rerouted to a printer with

that funconality, and the

soware has to support

the funconality on that

printer.

One tool that overcomes

this is Canon's uniFlow

universal driver, which

noes the user if the

print job can be fullled at

their chosen device - for

example, if it supports the

required nishing func-

ons. uniFlow supports

the majority of manufac-

turers' oce mulfunc-

on peripherals, although

it is parcularly custom-

ised to Canon MEAP-

enabled devices.

By using authencaon,

all print acvity is logged

and can be reported on,

and most mulfuncon

peripherals now provide a

full audit trail of acvity

for tracing unauthorised

access. This feature is

parcularly helpful in the

case of a breach, as the

source can be quickly

idened .

Of course, there will be

cost implicaons in choos-

ing whether to ulise built

-in security features or

third-party products that

have the associated li-

censing and support costs.

The market remains

somewhat disjointed -

between manufacturers'

own products and thethird-party tools from

independent vendors.

Cost-eecve unied ap-

proach

Quocirca believes the

opportunity for a cost-

eecve unied approach

that works across printer

brands, parcularly for

large enterprises, has yet

to be fully exploited. Cer-

tainly, independent ven-dors such as Equitrac are

well posioned to provide

such capabilies through

its partnerships with the

major manufacturers,

while products such as

uniFlow also have strong

mulvendor secure-

prinng capabilies.

The simplest and quickest

approach is to enablebuilt-in security features

that can minimise the risk

of documents falling into

the wrong hands. In the

long term, businesses

should gain control of

their printer eet through

a managed print service

that will enable them to

measure what is being

printed, by whom, and

deploy layered securityfeatures dependent on

their security needs.

Printers and mulfuncon

peripherals are not going

away and will remain a

signicant network end-

point for some me. Ig-

noring the potenal risk

of leaving these devices

unsecured can have seri-

ous implicaons for anybusiness.

E N D P O I N T S E C U R I T Y : H O W T O E R A S E P R I N T E R

T H R E A T


Read Quocircas

latest report on the

MPS market: MPS

Comes of Age.
http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912


6/14JUNE 2011

Since the release of the

iPad in 2010, the market

has become awash with a

variety of mobile print

soluons including Apples

AirPrint, HP ePrint, Ricohs

HotSpot prinng and

Google Cloud Print to

name but a few. Many

printer vendors are bank-

ing on the soaring demand

for smartphones and tab-lets to revitalise the oppor-

tunity for prinng, in the

oce, at home and on the

move.

With projecons that

smartphone sales will reach

300 million worldwide in

2010 and up to 55 million

tablets forecast to be sold

this year, the opportunity is

signicant, even if only asmall proporon of users

actually need or want to

print. But as the two walled

gardens of printers and

mobile devices come to-

gether, are vendors in dan-

ger of over-complicang an

essenally simple process?

The mobile and print

worlds are remarkably simi-

lar in many ways. In themobile world, data and

applicaons are increasing-

ly the keys to opening up

new revenue opportunies

for device manufacturers

and plaorm providers. In

the printer world, pages

are king as it is the ink on

pages that drives revenue

more than the hardware.

The collision of two mar-kets driven by proprietary

plaorms has created chal-

lenges in developing

universal prinng capa-

bilies across mobile

plaorms.

So, faced with a diverse

mobile device plaorm

landscape, it is unsur-

prising that it has

spawned such a wide

array of mobile prinng

soluons from printervendors. Most of these

soluons are predicated

on sending a document

as an email aachment,

via the cloud, to a web-

enabled printer which

has an associated email

address. The excepon

to this is Apples Air-

Print which currently

supports prinng to HP

cloud-aware printersonlywhich include

HPs OceJet, LaserJet

Pro and PhotoSmart

printers.

HPs head start

HP has had a clear head

start in the market, be-

ing the rst (and so far

only) printer vendor to

oer direct support

through AirPrint. Butwhat are the opons

for businesses not using

HP printers that want a

reliable and universal

way to print to oce

devices from

smartphones or tab-

lets? One soluon is

HPs ePrint Enterprise,

part of an HP Managed

Print Service which ena-

bles BlackBerry users toprint to any network-

enabled printer. HP has

also just announced

that ePrint Enterprise

now also support

iPhones and was ex-

tended to Android de-

vices in May 2011. Ricoh

and Xerox also have

their own soluons

which require emailing

a document to a regis-

tered printer. One nota-

ble and recent addionto the mobile prinng

fray is from EFI, the pro-

vider of Fiery controllers

for MFPs from a variety

of manufacturers

including Canon, Xerox,

Ricoh and Konica Minol-

ta.

EFI PrintMe Connect

Interesngly, EFIs

PrintMe cloud prinngsoluon was launched

nine years ago in re-

sponse to the need for

secure prinng for mo-

bile workers at locaons

such as hotels and air-

ports. PrintMe oers

automac discovery of

printers and their loca-

on, without the need

for printer drivers or

addional soware.

Documents are upload-

ed to the cloud through

either the PrintMe web

site, email, PrintMe

print driver or the

PrintMe smartphone

apps. Documents can be

printed through the

PrintMe server to any

PrintMe enabled printer

client.

PrintMe also supports

direct mobile prinng

W I L L S M A R T P H O N E S A N D T A B L E T S H E R A L D T H E E R A

O F U B I Q U I T O U S P R I N T I N G ?


The collision of

two markets

driven by

proprietary

plaorms hascreated

challenges in

developing

universal

prinng

capabilies

across mobile

plaorms


7/14JUNE 2011

without the requirementfor the cloud. Documents

can be sent directly to

any Wi-Fi connected

Fiery driven printer. Its

latest addion, PrintMe

Connect for AirPrint sup-

ports the new AirPrint

plaorm and iOS 4.2

meaning users can print

easily from any applica-

on on their Apple de-

vice to any Fiery printer.

Once installed on the

network, PrintMe Con-

nect for AirPrint will

show all available Fiery-

driven printers as des-

naons on a users print-

er list. There is no need

for the individual user to

download an applicaon

or for the enterprise to

purchase a specic iOS-

enabled printer or up-

grade or modify exisng

printers or MFPs.

Of course, the quesonremains as to how much

mobile device users real-

ly want to printand if

there are no simple and

intuive ways to print, it

is likely that users will

just not bother.

But even if just a small

proporon of the huge

installed base of mobile

device users print, themarket represents signi-

cant incremental reve-

nue opportunies for

printer vendors.

Of all these vendors, it is

only HP that has really

put a clear stake in the

mobile prinng ground

and has certainly taken a

leadership posion in the

mobile prinng space,providing a simple and

eecve way to print

from Apple s latest gen-

eraon of iPhones, iPods

and iPads.

But where EFI can potenally

capture more mindshare is in

the enterprise environment,

where its Fiery-controller

devices are widely installed.

In the meanme, the market

will connue to be character-

ised by a mix of soluons

from printer vendors and

third party app developers.

EFI PrintMe Connect certainly

oers the potenal for ubiq-

uitous prinngat least in

the enterprise, but its success

will be on its partnerships

and joint-markeng with

printer and MFP vendors to

ensure enterprises fully un-

derstand how it can be de-

ployed to oer a simple and

secure approach to mobileprinng.

W I L L S M A R T P H O N E S A N D T A B L E T S H E R A L D T H E E R A O F U B I Q U I T O U S

P R I N T I N G ?

Page 7 P R I N T E R P U L S E J U N E 2 0 1 1

Even if just a

small proporonof the huge

installed base of

mobile device

users print, the

market

represents

signicant

incremental

revenue

opportunies for

printer vendors.

The Cloud Prinng Alliance is a partnershipstarted byCortado, a division of ThinPrint AG, together with

printer & Wi-Fi router manufacturers, hotspot providers, soware developers and mobile operators . As

the founder of the Cloud Prinng Alliance, Cortado oers the leading cloud prinng soluon for mobile

prinng. Cortado supports thousands of printer models from over 90 printer manufacturers worldwide.

Printers most suitable for prinng are those of Cloud Prinng Alliance manufacturers. Through close

cooperaon with Cortado, new printer models from alliance partners will be fully supported thereby

using printer drivers suitable for cloud prinng. Recommended printers from Cloud Prinng Alliance

manufacturers can be recognized by the Cortado Cloud Prinng Ready logo. Alliance partners include

Brother, Dell, Konica Minolta, Kyocera and OKI.

CORTADO: CLOUD PRINTING ALLIANCE


8/14JUNE 2011

cial printer hardware andconsumer printer hard-

ware accounng for 22%

and 11% respecvely. The

consumer market for

printers is highly commod-

ised, so HP is increasing

its focus on grabbing a

larger share of the com-

mercial market. Commer-

cial printer hardware ship-

ments growth is im-

portant, not only for reve-nue but also the supplies

revenue growth these de-

vices can deliver on an on-

going basis.

HPs vision for its IPG busi-

ness includes having an

ecosystem for on- and o

-ramps and a comprehen-

sive cloud-based

plaorm. In simple terms,

this means enabling usersto connect to any HP net-

worked printer, mulfunc-

on peripheral (MFP),

print shop and retail store-

front from any device,

securely and seamlessly

wherever the user is at any

one me. Behind this ob-

jecve is the goal to ul-

mately drive higher value

pages, such as colour

which generate muchmore revenue than black

and white pages, which in

turn drives supplies reve-

nue.

The mobile opportunity

HP also described its inno-

vaon around its web-

enabled printers, which

use the webOS plaorm.

Its ePrint service enables

prinng on any internetconnected device by send-

ing the output as an email

aachment directly to theprinter. HP has high hopes

for adopon of this among

home and business users

alike. It shipped 3 million

units of its web-enabled

printers in Q1 2011 and

expects to ship 20 million

by the end of this year.

Indeed, the advent of

smartphones and tablet

devices such as the iPadhas generated a new wave

in development of prinng

soluons for plaorms

such as the BlackBerry,

Android and iOS. As well as

ePrint, HP has also worked

closely with Apple to de-

velop direct prinng sup-

port for HP printers and

MFPs in the latest release

of AirPrint available on

devices running iOS 4.2 orlater. HP also announced

that it would provide sup-

port for Googles Cloud

Print later this year.

The launch of its webOS

TouchPad tablet also this

year will undoubtedly

bring nave driver support

into webOS for HP devices

and, as such, HP is well

posioned to integrate themobile and prinng experi-

ence for these devices

although it remains to be

seen how popular they will

be. While HP has brought

mobility to the forefront of

its print strategyother

vendors such as Xerox and

Ricoh have also released

products for prinng to

their printers and MFPs

from smartphones.

At its recent

Analyst Summit

in San Francis-

co, HP deliv-

ered a strong

vision on how it

aims to grow its prinng

revenues across consum-

er, SMB, enterprise and

commercial markets.

Whether it's consumer

web aware printers, retailpublishing such as Snap-

Fish, managed print ser-

vices (MPS) or digising

the commercial print pro-

cesses, HP demonstrated

a range of products and

services and an integrated

go-to-market strategy that

will enable it to extend

the reach for its vast

porolio.

HP certainly has a strong vi-

sion to integrate its cloud,

mobile and security oerings

and the one area where HP is

certainly able to exploit the

convergence of these trends

is prinng. HP has the tech-

nology experse in each of

these areas, to provide it with

a compeve advantage over

its tradional print and copiercompetors who are all look-

ing to capture more revenues

from products and services in

a mature market where HP

currently dominates.

HPs Imaging and Prinng

Groups (IPG) revenues grew

by 7% in 2010, and overall,

IPG accounted for 20% of

HPs revenue. Supplies reve-

nue represents 67% of overallIPG revenue, with commer-

H P ' S V I S I O N T O D R I V E M O R E P R I N T E D P A G E S B Y

H A R N E S S I N G T H E C L O U D , M O B I L I T Y A N D

C O N N E C T I V I T Y


The advent ofsmartphones and

tablet devices such

as the iPad hasgenerated a new

wave in

development of

prinng soluons

for plaorms such

as the BlackBerry,

Android and iOS


9/14JUNE 2011

Growing service and soluonsrevenue

HP is also looking to drive high

value recurring business through

managed print services (MPS)

where it currently has 3,000 cus-

tomers. MPS is a burgeoning

market oering printer vendors

an opportunity to capture more

pages through managing oce,

commercial and producon print

environments. HP is already see-

ing the fruits of its joint go-

to-

market MPS acvies between

IPG and its Enterprise Business

(EB) unit. This has resulted in a

200% rise in joint IPG/ES total

contract value growth with 74%

of the HP enterprise funnel in-

cluding joint pursuits. HP also

indicated that its average deal

size is seven mes higher through

joint acvies.

HP is certainly well posioned tocapitalise on these joint opportu-

nies and the two groups seem

to be well aligned in their go-to-

market approach. HP intends to

further drive the value of MPS

contracts by increasing the sales

of aached document workow

soluons. In 2010, these account-

ed for 75% of its MPS contracts,

compared to 25% in 2008.

Having developed a strong service

porolio for enterprise clients, HP

is now building an infrastructure

for its channel partners to deliver

MPS to SMBs encouraging them to

move to a contractual model away

from tradional transaconal

sales. HP has developed Quick-

Page, a turnkey service oering

that provides billing, account man-

agement and nancing for channelpartners. This hosted infrastruc-

ture minimises the resources and

investment necessary for channel

partners to parcipate in the lu-

crave MPS market.

An expanding print service pro-

vider ecosystem

Accelerang the analogue-to-

digital transformaon in graphics

is another opportunity for HP to

drive supplies and page growth inthe commercial prinng market.

HP esmates that 1.46 billion pag-

es were printed on its high speed

inkjet presses in 2010. The fact

that over 95% of graphics pages

such as labels and packaging, sign-

age, publishing and collateral are

sll analogue clearly represents a

huge opportunity for HP.

H P ' S V I S I O N F O R D R I V I N G M O R E P R I N T E D P A G E S B Y

H A R N E S S I N G T H E C L O U D , M O B I L I T Y A N D C O N N E C T I V I T Y


As a technology giant, HP has thebreadth and scale to operate in all

areas of the print industry

covering consumer, SMB, enter-

prise and commercial print. Its

vast integrated go-to-market infra-

structure sets it apart from some

of its competors, and certainly

the joint approach with its Enter-

prise Services business will boost

MPS revenues.

But in the enterprise and commer-cial print arena it faces s com-

peon from rivals such as Xerox

and Ricoh who are both adapng

their porolios to capture wider

enterprise print opportunies.

HP has got its nger in many print

pies, but it will be the ability to

execute on increasing page

growth through its product and

services that will ulmately drive

its revenues in the future.

MPS: HP and Endesa

In January 2008, HP and Endesa, S.A., Spains largest electric company, entered into a ve year MPS contract

in order to improve prinng costs and its environmental footprint through the more ecient maintenance

of its imaging and prinng eet. Endesa began the contract with 4,000 printers, scanners copiers and fax

machines across 280 sites in Spain.

Aer HPs Eco Assessment its print eet was reduced by 526 units, represenng a 19.4 per cent drop in units

and savings in energy consumpon of 39%. The corresponding page volume reducon resulted in 36% less

paper consumpon translates in 132,243 kg paper savings a year. Endesa was able to materialise costreducons of 42%


10/14JUNE 2011

bilies across its productrange.

PBBIs strategy is to help

its customers enable life-

me customer relaon-

ships through the applica-

on of Customer Commu-

nicaon Management

(CCM). PBBIs CCM com-

prises a set of core capabil-

iesdata, insights, strat-

egy and communicaonsthat help businesses ac-

quire, serve and grow the

lifeme value of their cus-

tomer base. CCM parcu-

larly focuses on creang

and delivering cost-

eecve mul-channel

communicaons

including print, email, web,

SMS and call centre inter-

acons.

A complex product range

PBBIs products for CCM

include soluons for docu-

ment composion, archive

and compliance, web self-

service and interacve

communicaons for cus-

tomer service representa-

ves. PBBIs MapInfo has

long been widely regarded

as the leading product for

locaon intelligence andgeographical informaon

systems (GIS) while its

latest acquision, Portrait

Soware, lls a gap in

PBBIs customer and data

analyc capabilies

which include data inte-

graon and data proling,

along with analycs prod-

ucts such as demographic

and psychographic data.

PBBI now certainly has arange of products to ena-

ble businesses to gain real

customer insight, parcu-

larly through geo-

demographic and psycho-

graphic analysis. PBBIs

advantages over some of

its competors are the

ability to go beyond tradi-

onal analyc segmenta-

on using either geo-

demographics or advancedpredicve modelling as

provided with Portrait

Soware. At one end of

the scale, PBBI is com-

peng against standard

CCM vendors such as HP

Exstream, Thunderhead

and GMC, while at the oth-

er end is also compeng in

the business intelligence

space with many smaller

analycs companies andthe large players, many of

who have made acquisi-

ons in the last few years

(e.g. IBM/Cognos, Oracle/

Hyperion, SAP/Business

Objects). If PBBI can simpli-

fy its messaging, it can

certainly be a real con-

tender in these markets.

Exploing the conver-

gence of digital and printcommunicaons

As the communicaons

landscape connues to

become more complex, as

online and oine channels

converge and the use of

social media grows, busi-

nesses must nd a way to

manage business process-

es across all these chan-

nels. Many of its custom-

ers are undoubtedly oper-ang print and digital com-

Pitney Bowes has

long been a goli-

ath in the me-

tered postage

market with

around an 80%

share in the US

and 65% interna-

onally. The need

to diversify be-

yond the stag-

nant postagemarket has seen

it venture into

the soware

world. This ven-

ture has been far

from smooth as it

connues to try

and carve out a

niche beyond its tradion-

al dominance in the mail-

room.

The company has spent over

$2.5 billion on soware ac-

quisions since 2000 includ-

ing MapInfo (locaon intelli-

gence), Group 1 Soware

(data management and cus-

tomer communicaons) and

most recently Portrait So-

ware (customer analycs).

These are managed by Pitney

Bowes Business Insight(PBBI), which was formed in

2007 from the merger of the

Group 1 Soware and MapIn-

fo businesses. However, the

various acquisions have

created a patchwork product

porolio and a complex set of

oerings. PBBI is now com-

peng with far more com-

petors than it is used to, so

must simplify its messaging

and focus on the core capa-

P I T N E Y B O W E S B U S I N E S S I N S I G H T : T R Y I N G T O P U T

I T S S T A M P O N T H E S O F T W A R E W O R L D


PBBI now has arange of products to

enable businesses

to gain real

customer insight,parcularly through

geo-demographic

and psychographic

analysis.


11/14JUNE 2011

municaon processes in silos andare probably using some ele-

ments of PBBIs CCM suite

either for document composion,

data quality, producon or ar-

chival. PBBI must now encourage

these customers to move to a

single enterprise CCM plaorm,

and thereby reduce the waste

and ineciency associated with

decentralised communicaons

processes.

But, ulmately, the biggest op-

portunity for PBBI is to pull to-

gether its wide and somewhat

disjointed porolio, and provide

a unied CCM enterprise

plaorm that can idenfy the

hot pockets of customers byboth geography and buying habits.

Such highly targeted capabilies

can lead to far higher conversion

of prospects to customers, so re-

ducing the cost of sale and also

buyer fague caused by over

markeng of dierent approaches

to people who have no interest.

Such an approach avoids the need

to sell to mulple dierent groups

within the organisaon, as it pro-

vides a single approach that canbe used directly by sales and by

markeng, yet provides all the

analyc and reporng capabilies

as needed throughout the rest of

the business.

P I T N E Y B O W E S B U S I N E S S I N S I G H T : T R Y I N G T O P U T I T S

S T A M P O N T H E S O F T W A R E W O R L D


PBBI certainly has the technologyand the breadth and scale of prod-

ucts to enable businesses to cre-

ate personalised mulchannel

communicaons but it cannot

ignore that other players are snap-

ping at its heels, parcularly HP

and GMC who both oer end-to-

end CCM plaorms. Along with

the many vendors in the customer

interacon space, PBBI has cer-

tainly got its work cut out in estab-

lishing a strong posion in themarket.

Quocirca will be publishing reports on the following topics in the

second half of 2011:

Quocircas Print Security Compeve Analysis 2011

Quocircas Mobile Prinng Compeve Analysis 2011

Managed print services and SMBs

Beyond MPS: Document process outsourcing

If you require further details or would like to speak to Quocircaregarding parcipang in our mul-client studies please contact:

[email protected]

Mobl: 07786 331924

Quocirca reportscoming soon


12/14JUNE 2011

nies. NewFields agshipAssetDB technology al-

ready underpins the

assessment and opmi-

saon capabilies for

the Xerox Partner Print

Services (XPPS)

plaorm. NewFields

pedigree as a print as-

sessment provider is

well recognised across

the industry with mostprinter and copier ven-

dors having used Asset

DB in varying degrees to

support assessment of

print environments and

opmised MPS designs.

Asset DB covers the

complete gamut from

graphical oor-plan

based data collecon to

future state design of an

opmised print environ-

ment. Although Xeroxs

purchase of NewField IT

could be dismissed as a

small acquision, it cer-

tainly has the potenal

to make a signicant

impact of Xeroxs chan-

nel-led MPS revenue.

Xerox is keen to repli-

cate its success in the

enterprise MPS market

across the SMB and

midmarket, which cur-

rently has a relavely

low penetraon of MPS.

However, success in

these channel-led mar-

kets is highly reliant on

resellers resources and

skills to sell and deliverMPS quickly and eec-

vely. The Xerox Print

Partner Services (XPPS)

hosted MPS infrastruc-

ture was developed over

a year ago to provide

channel partners with a

set of tools to manage

every element of an

MPS contract including

sales pursuit, device dis-covery, opmisaon and

service delivery. Quocir-

ca believes that the ac-

quision of Neweld IT

will enhance Xeroxs

credenals to deliver a

comprehensive set of

MPS tools for mulven-

dor resellers far beyond

the basic MPS packages

currently on oer fromits competors.

While the technology

benets of the acquisi-

on for Xerox are clear,

less clear is how New-

Field IT will connue to

operate as a vendor-

neutral provider of so-

ware and services. Itsexisng relaonship as

an assessment provider

for HP and Ricoh, for

instance, must surely be

at risk and even more

so given HPs acquision

of Printelligent.

Meanwhile, NewField IT

intends to connue

providing independent

consultancy services to

Xeroxs acqui-

sion of New-

Field IT, a UK

based print

consultancy

and soware

soluon pro-

vider follows hot on the

heels of HPs acquision

of Printelligent, a US-

based managed printservices (MPS) provider.

With both HP and Xerox

looking to expand the pen-

etraon of MPS to SMBs

and midmarket organisa-

ons, the acquision of

these companies provides

the addional capabilies

that both companies needto ensure higher penetra-

on rates. This market re-

mains a largely untapped

opportunity for channel

partners to capture on-

going service revenue op-

portunies in an increas-

ingly commodised hard-

ware market the acquisi-

ons enable both vendors

to approach SMBs via thechannel with a services-led

model that provides dis-

nct business value to the

customer.

Xerox and NewField IT

Xeroxs acquision of New-

Field IT cements a long-

established relaonship

between the two compa-

T H E B A T T L E F O R C H A N N E L - L E D M P S H E A T S

U P


The majority ofSMBs and

midmarketorganisations

currently

purchase printerhardware and

consumables ona transactional

basis


13/14JUNE 2011

end-users, abiding by its es-tablished code of conduct

which states that it will remain

objecve and not supply or

promote the products of

those hardware vendors that

license its technology. Vendor-

agnosc assessments are a

crical part of any MPS en-

gagement and NewField IT has

long been oering these as an

independent provider. Howev-er, it remains to be seen how

eecvely it can connue to

preserve its independence

when delivering vendor-

neutral recommendaons for

MPS device opmisaon.

HP and Printelligent

HPs almost simultaneous an-

nouncement to acquire

Printelligent has levelled the

playing eld between the two

vendors. Although XPPS had

recently been the only cloud

MPS plaorm available to

mul-brand resellers enabling

them to manage a mulven-

dor environment, HPs latest

acquision of Printelligent will

now provide HP channel part-

ners a wealth of scalable mul-

vendor MPS capabilies.

With Printelligent, HP has ac-

quired an established MPS

provider which has been oer-

ing MPS since 1993 through a

network of MPS channel part-

ners across the US. Printelli-

gent assets will enhance HPs

assessment and opmisaon

capabilies and its MPS salesand services experse infra-

structure, along with HPs

cloud-based InCommand

plaorm will enable HP to now

deliver a set of dierenated

MPS soluons and services via

the channel. Whilst the acqui-

sion of Printelligent will cer-

tainly bolster HPs channel MPS

capabilies in the US, it may

take some me to provide asimilar set of services to its Eu-

ropean channel, parcularly

given Xeroxs strong MPS pres-

ence in this region.

Market outlook

The majority of SMBs and mid-

market organisaons currently

purchase printer hardware and

consumables on a transaconal

basis which creates a huge op-

portunity for hardware vendors

to encourage customers to

adopt a contractual approach

to buying prinng rather

than printers. Consequently

the market for MPS in the SMB

and midmarket is moving be-

yond the simple single brand,

basic service which essenally

wraps hardware with supplies,

maintenance and support.

Whilst HP and Xerox will con-

nue to oer these basic ser-

vices for businesses that need

it, the real cost saving both

nancial and environmental

comes from a detailed assess-

ment and opmisaton of the

printer environment from

T H E B A T T L E F O R C H A N N E L - L E D M P S H E A T S U P


both a hardware and workowperspecve. Channel partners

therefore need simple and ex-

ible tools and an infrastructure

that they can tap into to sell,

deliver and manage MPS on an

on-going basis.

The market to sell MPS to

SMBs and midmarket organisa-

ons is sll wide open and ven-dors must provide their chan-

nel with a simple and eecve

MPS cloud plaorm that can

deliver remote monitoring,

consolidated billing, supplies

and service and reporng

across a mul-vendor environ-

ment. For now SMBs are most

likely to be more recepve to

basic services, whilst the mid-

market organisaons stand tobenet most from more com-

plex and value-based MPS

proposions.

Although Xerox had a head

start in providing an MPS infra-

structure for its channel part-

ners, HP has made a smart ac-

quision which will help it

catch up and strengthen itspresence in this market, parc-

ularly as it can exploit its strong

relaonship with the IT chan-

nel. Now that both vendors

have the infrastructure and

tools to provide their channel

partners, success will ulmate-

ly be linked to how well these

vendors engage and train their

channel to deliver MPS to their

customers.


14/14

P R I N T E R P U L S E J U N E 2 0 1 1 Page 14

Vendor Customer Vercal Length of

Contract(years)

Descripon

HP BIS Industrial

Services

Industrial N/A Raonalisaon of print services across 40 locaons

in order to reduce the support burden on its small IT

team and cut spiraling maintenance and supply

costs.They turned to HP to deploy a Smart Prinng

Services soluon worth 120k.

HP Uhde Gmbh Engineer-

ing

N/A Uhde Gmbh, a subsidiary of ThyssenKrupp AG, one

of the worlds leading engineering companies in the

design and construcon of chemical, rening and

other industrial plants has chosen HP for its new

prinng environment, a contract worth $1M.

HP Total

Deutschland

Energy N/A Total Deutschland, are using HP for an MPS in order

to renew and opmise its print and copier environ-

ment with regards to paper consumpon and costs.

HP Cable & Wire-

less

Telecom-

municao

ns

N/A HP MPS soluon with SafeCom to monitor usage,

improve workow and enhance print security.

Xerox Fritz Schu-

macher, Swit-

zerland

Print N/A Fritz Schumacher AG is expanding its exisng part-

nership with Xerox. Fritz Schumacher is adding A3

colour mulfuncon systems to its porolio, as well

as an enre range of services.

Xerox Leieit Home-

wares

5 years Leieit AG is implemenng Xerox MPS at its head-

quarters in Nassau, cung costs by nearly 30 per

cent.

AT A G L A N C E : M P S C O N T R A C T U P D AT E ( E U R O P E )

Please note that this is not an exhaustive list of MPS wins for the vendors mentioned.

Quocirca Printer Pulse June 2011

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Transcript of Quocirca Printer Pulse June 2011