Basic HTML Version
PRINT.IT
19
www.binfo.co.uk
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.
Q&A
Ahead of leading MPS conference Transform Europe 2013,
PrintIT
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 OEMs’ 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
point solutions, but are creating
demand for a single provider.
Some companies are moving
in this direction, while some
remain rooted to their heritage.
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
On September 30 – October 2, Transform Europe returns to
Twickenham Rugby Stadium for the second year running.
The leading educational event for the European market, it
gives visitors an unrivalled opportunity to find out about
managed print services and trends in office printing. 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 managed print services for
vendors, resellers and end users.
Ken Stewart
Continued...