Basic HTML Version
mps
Print.IT Reseller
01732 759725
28
Q&A
On September 30-October 2, Transform
Europe returns to Twickenham Rugby
Stadium for the second year running.
The leading educational event for
the European printer channel, it gives
visitors an unrivalled opportunity to
find out about managed print services
and trends in office printing; discuss
strategies for achieving business
success; and network with colleagues
from across Europe, the Middle East
and Africa. To kick off our coverage
of Transform Europe 2013, we ask
Photizo Group’s Director of MPS
Advisory Services Ken Stewart about
some of the key trends in MPS.
The Print Market in 2013
Q.
How would you characterise the
office printing business in 2013?
A.
It is pretty clear that today’s customers are
cautious, uncertain of tomorrow’s outlook.
Despite this looming cloud (and perhaps
because of it), MPS continues to gain ground.
In fact, providers we speak with are telling
us that MPS customers’ volume is flat to
increasing.
Q.
Is the MPS market still growing
in the UK and Europe? If so, by how
much?
A.
Yes. Both the UK and EMEA have been
growing at respectable double-digit growth
rates for the past several years, and we
project continued strong growth.
Q.
What are the main drivers for MPS
adoption?
A.
There are several drivers, on both sides
of the table. To net it all out, providers have
classically driven MPS into the market as
a value-driven differentiator. Meanwhile,
economic conditions continue to push
customers to strongly consider all cost
savings measures.
Q.
Which areas of the market are
growing fastest?
A.
When considering the overall market, the
mid-market appears to be where a lot of the
action is.
Channel
providers could
certainly benefit
from taking
a more direct
role in their
markets...
Ahead of Transform Europe 2013,
PrintIT Reseller
questions Ken Stewart, Photizo Group’s Director of MPS
Advisory Services, about trends in managed print services.
Channel or Direct?
Q.
Are vendors and their indirect
channels benefiting equally from this
growth or are vendors taking the
largest deals for themselves?
A.
It’s an interesting picture to be sure. While
OEMs control roughly two-thirds of the
reported revenue in the MPS market, MPS
customers report that channel providers are
actively engaged in accounts approximately
two-thirds of the time as well. So the channel
is actively engaged where it is needed
most – to help facilitate the fulfilment of
contracts, whether as agents or partners of
the OEMs. Channel providers could certainly
benefit from taking a more direct role in their
markets, but continue to enjoy the OEM’s
halo effect in the meantime.
Q.
Are there areas of the market that
vendors are unable and/or unwilling
to reach? If so, what are they doing
about it?
A.
We are seeing more competitors from
previously adjacent markets today than
ever before. Customers want partners that
can take care of all of their needs under a
single umbrella. Today, they are settling for
providers offering print solutions, but are
creating demand for a single provider. Some
companies are moving in this direction, while
some remain rooted to their heritage.
Q.
Is a vendor channel offering the
quickest and easiest way for a reseller/
dealer to develop an MPS capability?
A.
In Europe, probably so. We haven’t seen
the emergence of robust, independent MPS
programs as we’ve seen in the US – so far.
Q.
What, if any, are its limitations (for
resellers)?
A.
There is a wide range of program
capabilities as OEM programs (in Europe)
mature. We are seeing wide variances in
the offerings between countries. We always
recommend that channel providers look to
third-party sources, such as Photizo Group or
the MPSA, to help them better understand
what to look for in a prospective program.
Q.
Are independent managed print
service providers holding their own
against vendors’ offerings?
A.
Strong independent providers, such as
those we feature in our MPS Leaders Index
for channel providers, are not only holding
their own – they are setting the pace.
Q.
Is there any evidence that end
users prefer one type of supplier (i.e.
independent or vendor)?
A.
Customers prefer a partner that can
meet their needs. So, multi-national firms
want a provider that can cover this scope.
Meanwhile, smaller companies may prefer
a partner that is part of the community.
However, we can say that certain brands
are more preferred than others, and
that customers would prefer to have a
single provider to offer both IT and print
management services.
Alternative providers
Q.
Are alternative MPS providers, such
as stationery suppliers and IT services
companies, having an impact in the
market?
A.
We are seeing an increased level of
interest by IT services companies, yes. These
firms’ impact to the market hasn’t hit critical
mass yet, but it is being noticed.
Q.
Do they have particular strengths/
weaknesses compared to office print
specialists?
A.
IT services providers enjoy a unique
position with their customers. It’s clear that
customers would prefer a single partner to
provide all managed services, and given that
IT is heavily involved in the decision-making
process it stands to reason that IT decision-
makers would prefer to do business with IT
services companies more often than not.
Q.
Are they developing their own
offerings or are they just another
route to market for established MPS
providers?
A.
There are some who have built their own
programs, but we are seeing more uptake in
IT VARs and MSPs who subscribe to either an
OEM or infrastructure providers’ program.
Points of differentiation
Q.
Are MPS offerings becoming
homogenised or are there real points
of differentiation between services
offered by different providers?
A.
There are certainly providers that maintain
a high degree of value with customers.
However, in the broader market we have seen
price continue to increase in importance as
Ken Stewart,
Director of
MPS Advisory
Services,
Photizo Group
Twickenham
Rugby Stadium