Stop Leaving Money on the Table!
This guest blog was contributed by Tim Brien.
According to a recent article in MSP Mentor, only 20 percent of the top 100 managed service providers currently offer managed print services (MPS). That fact reveals two things: 1) There is limited awareness among MSPs about the unique advantages and revenue-generating opportunities inherent in including managed print as part of their suite of services, and 2) there is plenty of room – and tremendous opportunity – for MSPs to establish themselves and stake their claim within the MPS arena.
The integration of MPS into key market segments is still gaining strength, and MSPs have much to gain by offering managed print. What MSPs should understand is that all channel segments are looking to get into MPS – copier dealers, hardware and consumable distributors, DMRs and retailers, to name a few. The competition is rapidly increasing, and the window of opportunity is limited, so don’t get left behind.
Why the hesitation, then? In order to get into MPS, IT VARs have traditionally had to augment their existing infrastructure to manage print solutions. In order to be properly equipped to provide this type of support, MSPs must identify the gaps in their current capabilities to deliver managed print and measure the expenses associated with procuring these capabilities versus the resulting ROI. The good news is this: With today’s rapid convergence of the MSP and MPS markets, the availability of turnkey service solutions and complete MPS business models that can simply build onto your existing infrastructure are rapidly becoming available to MSPs with little to no upfront investment costs.
There are a number of MPS solutions featuring a broad range of offerings from which to choose. A cloud-based solution (such as OKI’s Total Managed Print (TMP), for example) provides a cost-effective, complete MPS business model that can also be utilized at the individual component level to augment the MSP portfolio of IT offerings. This type of flexible, modular solution gives MSPs a unique and competitive edge by providing a wave of new opportunities for developing both immediate and long-term, recurring revenue streams while maximizing workflow efficiencies for their customers.
I speak at tradeshows and conferences regularly about improving the managed services environment through innovative software solutions and services. Some of the feedback I receive is that managing printers, copiers and document output seems like a lot of work and expense with minimal associated profit. I couldn’t disagree more.
Managed print solutions provide partners with the means to increase margins and revenue streams quickly while generating real and quantifiable savings for their customers. It’s truly a win-win situation. By partnering with the right vendor that can provide an end-to-end solution, the heavy lifting has already been done. All you need to do is help your customers save money and maximize efficiencies through the provision of print management and optimization services.
Twenty percent is quite a small percentage, but I view this number as a challenge, in that it’s imperative to present the remaining 80 percent of top MSPs with the compelling story that if they’re not offering MPS as part of their overall service offerings, they’re leaving money on the table – money that their competitors will gladly pick up. Consider these statistics:
· MPS revenue globally was nearly $31.6 billion in 2010 and is projected to exceed $68 billion by 2014.
· For MSPs, inclusion of managed print solutions will help boost revenues by 20 percent or more while driving markups of 50 percent – all with minimal effort and no added costs or infrastructure.
One final statistic: MSPs will miss out on 100 percent of the benefits of MPS if they continue to hesitate in committing to this cost-effective, revenue-generating, easy-to-use solution. Why wait? Act now and quit leaving money on the table!
Contact Tim Brien at tim.brien@okidata.com.
Tim Brien is the director of managed print services for OKI Data Americas.
For more information about managed print services and how to get started, attend a webinar or a conference in your area and visit the Managed Print Services Association at www.yourmpsa.org. For more information on OKI’s Total Managed Print solution, visit http://www.okidata.com/tmp.
Posted by Tim Brien on 10/24/2011