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MPS
The print channel faces challenging
times. Hardware commoditisation
and shrinking margins are creating
the need to create new revenue
opportunities around services and
software.
The top concern for the channel
today is competition from other resellers,
noted by 56 per cent of reseller survey
respondents. This was strongest in the UK,
where 65 per cent reported it as a top
concern. Resellers are also challenged with
decreasing marketing development funds
(MDF), reduced leads from vendors and a
lack of marketing resources, particularly in
the UK and France.
Redefining the role of the channel
The dynamic change in the way customers
wish to purchase, consume and pay for
their IT products and solutions is redefining
the role of the channel. The momentum of
cloud computing, evolution of customer
choice and continued margin erosion,
means that channel partners need to
build a new business model that is both
sustainable and flexible for the longer
term.
With commoditisation driving a decline
in hardware profit margins, the print
channel needs to look beyond transactional
sales towards building a services model
that enables recurring revenue, new
incremental revenue streams and longer
term customer relationships.
Channel-packaged MPS offerings aimed
at smaller and mid-market businesses
vary in depth and scale. An entry-level
MPS for example, offers a way for smaller
organisations to purchase printers
combined with supplies, maintenance and
support, through an all-inclusive contract.
Customers can choose to purchase devices
outright or lease them.
With some contracts, users only pay
for what they print. However, there may
still be a commitment to a service contract
for a minimum period. Depending on
their capabilities, resellers may offer
additional services as part of an MPS,
such as assessments, device consolidation
consultancy or document workflow
solutions. Some also offer flexible packages
that enable businesses to scale up their
usage as they grow.
Untapped opportunity
The channel plays a critical role in how
print manufacturers address the largely
untapped SMB opportunity.
However, resellers face many challenges
in making the transition to MPS. For many,
the service delivery, billing and internal
processing involved with MPS, requires a
step into the unknown.
Resellers that want to offer MPS may
find themselves with a need to build
new platforms and design new services,
alongside managing billing processes and
service delivery to support their customers’
demands. Dealers must ensure they can
execute successfully in bringing new
MPS offerings to market. They need to
understand exactly what their customers
want and position their offering to address
this.
Without previous experience in MPS,
this can present a high risk. In many
cases, these challenges can be too high
an obstacle to overcome, particularly for
smaller resellers that do not have the time,
resources or funds to invest in an entirely
new business model.
Quocirca has published a competitive overview of some of the key channel MPS offerings in the European
market. The report also includes highlights from a Quocirca study, conducted in April 2016, investigating
attitudes to solutions and services amongst 300 resellers in the UK, France and Germany. Louella Fernandes,
Associate Director for Print Services and Solutions at Quocirca, shares her thoughts
Channels to MPS
Making MPS accessible
More print manufacturers are simplifying
and expanding their channel propositions
to make MPS accessible, regardless of the
MPS maturity of the channel partner.
Today, many print manufacturers
are leveraging existing enterprise MPS
infrastructure to develop flexible channel-
led MPS offerings. Because of the disparate
nature of the printer and copier reseller
channel, manufacturers recognise the
need to develop a broad range of modular
services with options to suit the expertise
and maturity of each of their channel
partners.
The report provides a comprehensive
overview of the MPS programmes from
major vendors including HP, Lexmark,
Samsung and Xerox. These vendors are
developing a broad range of support;
including centralised portals, technical
resources and support, as well as
marketing and financial aid, generally
accessible via cloud-based platforms. This
helps resellers maximise their chances of
succeeding.
Xerox has an established lead here with
decades of experience in delivering MPS
through its channel partners. It has a broad
continuum of offerings from a single device
to full MPS and perhaps one of the most
advanced channel partner communities in
the industry.
HP is catching up, having spent the
past few years refining and simplifying
its channel-led MPS programmes. From
simple ‘print-as-a-service’ to broader MPS
offerings, HP has removed the complexity
of its previous patchwork model for
MPS. Its acquisition of Samsung’s printer
business and its push into the A3/copier
market relies on effective engagement of
the channel. As such, the coming year will
be critical for HP in recruiting not only the
right type of partners for its A3 business,
but also in driving momentum in its
traditional channel base.
A full report is available to purchase
separately directly from Quocirca.
Resellers that
want to offer
MPS may find
themselves
with a need
to build new
platforms
and design
new services
Simon Davey
and Jon Hill
Louella Fernandes,
Associate Director,
Print Services and
Solutions,
Quocirca
