Print.IT Reseller - issue 63

VOX POP PRINT IT RESELLER.UK 43 continued... In terms of business technology, you could argue this process began with the advent of managed print services, of which HP is a leader. “Aware of this contractual trend, we’ve applied much of our MPS know- how to our personal systems business, creating our ‘Device-as-a-Service (DaaS)’ offering. HP DaaS is a complete solution that combines hardware, analytics, proactive management, and device lifecycle services.” Martin Randall, Sales and Marketing Director , Vision : “I have no doubt that the ‘as-a-service’ model will continue to gain traction in many new markets, including ours, but the speed of adoption varies (often greatly) so it will be interesting to see the pace at which this happens.” Mike Mulholand, Head of Services and Solutions, Brother UK : “An increasing number of organisations are outsourcing the management of their print fleets, driven by the growth of highly flexible Hardware-as-a-Service solutions, where customers benefit from hardware inclusive service packages, and managed print services, where print systems are completely managed by a managed service provider (MSP) and vendor partnership. “We expect this trend to continue as customers see the benefits of leasing systems over ownership. While it will no doubt contribute to a rise in HaaS adoption, it will help spur the growth of MPS, too. Nine in ten of our MPS customers renew their contracts with us - a sign that this type of model is delivering significant benefit for businesses.” space and for smaller devices, such as laptops, PCs and mobile phones. However, most businesses still view print as a longer-term fixed asset commercial commitment, and it will take some time for this perception to change. “At Sharp we’re starting to see more demand for hybrid requirements, where a business will lease a large portion of its hardware, perhaps 80 per cent, on a fixed term basis but require the as-a-service model for the remaining 20 per cent of devices. This could be to accommodate project work or temporary office spaces. For example, in construction, a company may have fixed hardware needs for a large head office, but need flexible, shorter-term access to devices at transient building sites. Gradually, we will see a shift towards a 100 per cent as-a-service model in print, however it could take up to three years before this becomes more the norm.” Gary Tierney, UK&I Printing Director , HP : “It's not surprising that the research from Spiceworks reveals a shift towards ‘as-a-service’ business models. Today, IT managers are expected to manage an increasingly complex device ecosystem. It is now estimated that by 2020 there will be nine billion commercial devices worldwide. Managing those devices effectively is becoming both time intensive and costly for businesses, and ultimately impacts negatively on the bottom line. “Recognising this, business leaders are leaning towards ‘everything-as-a- service’ contractual models to reduce the time and expense of deploying, managing and securing IT infrastructure. Shaun Wilkinson: “A subscription-based service is far easier to sell than any upfront costs. The challenge for OEM and MSPs is the upfront costs they must carry to provide the service. Software is often provided on an ongoing monthly licence basis to the OEM/MSP, therefore adding some value to this and billing the customer monthly, is an easy proposition. “The challenge with any hardware is that the OEM/MSP must purchase the equipment and incur the capital cost. Passing this onto the customer and ensuring a low monthly outlay, means spreading the cost over a five-year term. Therefore, the OEM/MSP must ensure a five-year contract is entered into which in effect goes against the HaaS model.” Glenn Kershaw: “Possibly, however a standard lease agreement with separate maintenance costs may sometimes be a better option for the end-user. The lease cost is fixed for however many years determined by the contract, whereas the maintenance cost is subject to annual increases set by numerous variables. If you wrap the whole deal together it takes away some of the flexibility enjoyed by both the dealer and the end- user.” Derek Jones: “Of course, it could be argued that a lower upfront cost is beneficial, but for the reasons I have already given, I don’t think HaaS will become as popular as SaaS. In the end, most reseller salespeople will follow the path of least resistance and won’t push customers too far if they don’t want to get involved in financing (or renting) their hardware purchases.” Jamie Coombs: “Yes I think so. There will still be people who want to do traditional buying and make purchases outright, but there will definitely be a move towards HaaS. It makes everyone’s lives a lot easier. “It has also become an easier sell, The challenge with any hardware is that the OEM/ MSP must purchase the equipment and incur the capital cost. Passing this onto the customer and ensuring a low monthly outlay, means spreading the cost over a five-year term PrintIT Reseller: It could be argued that HaaS is easier to sell because of lower upfront costs and the fact that companies are used to paying monthly for more and more of their IT provision. With this in mind, do you believe that Haas will become as mainstream as its software equivalent? Simon Warnes Jamie Coombs