Quocirca Managed Print Services Landscape, 2014

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Copyright Quocirca 2014

Managed Print Services Landscape, 2014

A vendor analysis of the global enterprise MPS market

June 2014

This report examines the competitive landscape for MPS and discusses the key market

drivers and trends that will shape future generation MPS engagements .

REPORT NOTE:

This report has been written independently by Quocirca Ltd. During the preparation of this report, Quocirca has spoken to a number of

suppliers involved in the areas covered. We are grateful for their time and insights.

Quocirca has obtained information from multiple sources in putting together this analysis. These sources include, but are not limited to, the

vendors themselves. Although Quocirca has attempted wherever possible to validate the information received from each vendor, Quocircacannot be held responsible for any errors in any information supplied.

Although Quocirca has taken what steps it can to ensure that the information provided in this report is true and reflects real market conditions,

Quocirca cannot take any responsibility for the ultimate reliability of the details presented. Therefore, Quocirca expressly disclaims all

warranties and claims as to the validity of the data presented here, including any and all consequential losses incurredby any organisation orindividual taking any action based on such data.

All brand and product names are trademarks or service marks of their respective holders.

Louella Fernandes

Quocirca Ltd

Tel +44 1753 754838

[email protected]

Clive Longbottom

Quocirca Ltd

Tel +44 1189 483360

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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MPS Market Landscape, 2014 June 2014

Quocirca 2014 - 2 -

Managed Print Services Landscape, 2014EXECUTIVE SUMMARY

The managed print services (MPS) market continues to evolve beyond the core services of device consolidation

towards driving improved business efficiency around paper-dependent processes. While many organisations are still

at the early stages of their MPS journey, Quocirca estimates that around 20% have moved to next generation

contracts that incorporate document workflow and additional services such as business process services (BPS) and IT

services (ITS). Industry expertise remains a key differentiator as providers expand their business process automation

capabilities.

Leaders possess a strong

balance of capability,

strategy and market

presence

Xerox heads a closely packed group of leaders. In addition to Xerox, market leaders also include

HP, Ricoh, Lexmark and Canon. Xerox currently offers the broadest service portfolio across office,

mobile, production and off-site commercial environments. HPs MPS offerings are differentiated

by an extensive solutions portfolio with a mature vision for the cloud, mobility and security.

Lexmark continues to expand its ECM credentials through acquisition and its workflow

automation capabilities are also bolstered by mature industry expertise. Ricoh continues to

expand its MPS footprint with enhanced ITS and BPS capabilities while Canon is working to

strengthen its BPO capabilities.

Strong performers provide

complementary strengths

Konica Minolta and Kyocera lead the strong performers category. While possessing significant

strengths, these suppliers may lack the global reach or market presence of more established MPS

competitors. Konica Minoltassweet spot is mid-size organisations, which has helped contribute

to significant growth in 2013. It is particularly focusing on growth through IT services, where it is

working to unify acquired service providers. Kyocera is emerging as a credible player in the

market with its MDS proposition, which is primarily delivered through its dealer network.

Predictable costs is the top

driver for MPS

Notably, gaining predictable costs was the top reason for moving to a managed print service

(average score of 4.3 out of 5), above improved service quality (3.9) and reducing consumables

costs (3.8). The cloud is certainly helping to drive interest in managed services, offering similar

benefits of predictable expenses and services that can be scaled up or down as business needs

change. Predictable and transparent pricing is a key tenet of an MPS model and can help

businesses reduce costs and gain the financial flexibility to structure OPEX and CAPEX, andpotentially fund transformation programmes.

MPS is a platform for

increased business efficiency

The most effective MPS engagements have moved beyond a hardware-centric model for device

consolidation and optimisation to a business process-centric approach. With the majority of

enterprises looking to increase their digitisation efforts, MPS is proving an effective approach to

the integration of a digital workflow. Over half of MPS users are confident that they are

effectively integrating paper-based information with digital workflows, compared to less than

10% of non-MPS users. Better integration with broader ECM platforms will be a key differentiator

for MPS providers over the coming year.

Supporting enterprise

mobility and security is a key

need

Document security is cited as the top print management challenge amongst enterprises,

particularly as more move to a shared MFP environment where devices, and therefore

uncollected output, can be exposed to many users. Yet many are still failing to protect their print

infrastructure, with almost 90% of enterprises indicating that they have suffered at least onedata loss through unsecured printing. With the financial and legal ramifications of a data breach,

not to mention the brand damage, the print security gap must be closed. More MPS providers

are offering comprehensive security assessments that recommend the implementation of an

integrated pull-printing platform.

Key success criteria for MPS

providers

Businesses looking to start or extend their MPS journey should look for an MPS provider that can

have a truly transformative business impact. Employees are demanding access to the latest

technologies that enable them to work flexibly and productively. Meanwhile, customer

expectations are changing, meaning organisations must interact in more dynamic, agile ways to

maintain competitive advantage. This demands a new kind of MPS provider that can tame the

complexity of the print infrastructure, removing the IT burden, whilst helping them focus on

innovation and employee and customer satisfaction.


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Table of Contents

METHODOLOGY ............................... ................................. ............................... ................................. ................................ ......... 4END-USER ANALYSIS ............................................................................................................................................................................... 4VENDOR ANALYSIS ................................................................................................................................................................................. 4

DEFINITIONS .............................................................................................................................................................................. 4

THE MPS ECOSYSTEM ................................................................................................................................................................ 5

MARKET OVERVIEW .................................................................................................................................................................. 5

EXTENDED SERVICES .................................................................................................................................................................. 8

VENDOR ASSESSMENT ................................ ............................... ................................. ................................. ............................. 10

VENDOR HIGHLIGHTS ............................................................................................................................................................... 11

MARKET LEADERS:XEROX,HP,RICOH,LEXMARK,AND CANON..................................................................................................................... 11STRONG PERFORMERS:KONICA MINOLTA,KYOCERA DOCUMENT SOLUTIONS AND TOSHIBA ................................................................................ 13

RECOMMENDATIONS ............................................................................................................................................................... 14


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Methodology

End-user analysis

Quocirca conducted an end-user survey among senior IT managers with responsibility for decisions relating to a managed printservice. Research was conducted in the UK, France, Germany, and the US, at 210 enterprise companies with 1,000 or more

employees. Overall, 100 respondents were using MPS, 46 were planning to and 64 were not using or planning MPS. This survey

was conducted by telephone and fielded during April 2014.

Vendor analysis

Quocirca has included the following MPS providers in this study: Canon, HP, Konica Minolta, Kyocera, Lexmark, Ricoh and Xerox.

Vendor selection was according to:

Experience and skills in providing MPS services:all providers had to demonstrate a strong record of delivering MPS. Geographical delivery capability: each provider was required to have the capability to deliver global services.

Each MPS vendor was requested to complete a written submission detailing its strategy, capabilities, and customer references to

ensure key facts and figures were captured. These submissions were followed up with vendor interviews. The quantitative and

qualitative inputs from the vendor research were analysed by Quocirca in order to determine each vendors score against a list of

criteria for market presence and completeness of offering. Each score is on a scale of 1 to 5, where 1 is weak and 5 is very strong.

This evaluation of the MPS market is intended as a starting point only. Please note that Quocirca's scoring is based on an un-weighted model although prospective buyers may wish to weight the scores to meet their own specific needs.

The full market report, with detailed vendor rankings, can be purchased directly from Quocirca. Please contact

[email protected] more details.

Definitions

Quocirca defines a managed print service as the use of an external provider to assess, optimise and continuously manage an

organisations document output environment in order to lower costs and improve productivity and efficiency while reducing risk.

MPS allows organisations to reduce costs and improve efficiency by rationalising the print environment. It also leverages existing

investments in multi-function peripherals (MFPs), while continually monitoring usage, so that the optimised infrastructure

continues to meet business needs.

MPS covers a number of service areas across three broad categories:

Assessment a review of the current print environment to provide recommendations for a rationalised printenvironment and provide an estimate of potential future savings. Assessments range from basic online assessments to

full workflow assessments. Environmental impact analysis and document security assessments may also be included.

Optimisation device rationalisation and consolidation to improve user-to-device ratios and development of printpolicies to develop a governance framework for a full enterprise MPS, including change management, deployment, and

transition.

Management continuous process improvement, business reviews, SLA monitoring, remote management, andworkflow improvement.

These services fall under Quocircas definition of MPS when the vendor takes over responsibility for delivery under a contrac t of

three years or more in length. Such activities may also involve the transfer of people or assets to the vendor or provider.
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Figure 2. By Vertical - What is your current or planned adoption of MPS?

Quocircas survey reveals that the top driver for moving to MPS is to gain predictable costs, followed by improved service reliability,

and reduced consumables costs (Figure 3). However, there are wide regional variations in terms of the most important factor.

Financial service organisations place a higher emphasis on improved document workflow (4.4), predictable costs (4.3) and

enhanced security (4.1). Meanwhile, reducing paper usage (4.0) was the second top driver for public sector respondents after

predictable costs (Figure 3).

Figure 3: How important are the following drivers in motivating a move to a managed print service?

(Where 1 = unimportant to 5 = very important) MPS users and those planning to use MPS

The MPS model adopted varies. Overall 41% indicate they are taking a fully outsourced approach, with the remainder taking a

hybrid or out-tasked approach where an organisation may choose a selection of out-tasked services and/or retain some print

3.0

3.5

3.6

3.6

3.7

3.8

3.8

3.9

4.3

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Reduce costs (hardware)

Reduce environmental impact

Enhance document security

Reduce paper usage

Improve document workflow

Reduce burden on IT staff

Reduce costs consumables

Improve service quality/reliability

More predictable costs

Average Score

33%

37%

50%

49%

71%

16%

22%

18%

38%

17%

51%

41%

32%

13%

12%

0% 20% 40% 60% 80% 100%

Retail, distribution & travel

Public sector

Manufacturing

Business and professional services

Financial Services

We currently use a managed print service

We do not currently use a managed print service but are planning to in the

next 12 months

We do not use a managed print service and have no plans to do so.


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management tasks in-house. A hybrid approach is most prevalent in France while a higher proportion (almost 60%) of US

organisations take a fully outsourced approach. Notably, those using a fully outsourced approach display the highest levels of

satisfaction with their print infrastructure (Figure 4).

Figure 4. How satisfied are you with the performance, control and management of the print infrastructure?

(Where 1= not satisfied to 5 = very satisfied)

Equally, those enterprises that are using a fully outsourced model are most likely to be further along their MPS journey. Over 70%

of those fully outsourcing have been using MPS for over three years compared to 54% of those using a hybrid approach, and 17%

using an out-tasked approach. Those organisations that have most experience of MPS are also more likely to be deploying

document workflow automation to drive greater business efficiency and therefore will be reaping greater rewards than those at

the initial stages of their MPS journey. It is US organisations that are most likely to have moved beyond MPS to broader BPS and

ITS initiatives (Figure 5).

Figure 5. At which stage is your business in terms of its managed print services engagement?

3.54

3.69

3.95

3.30 3.40 3.50 3.60 3.70 3.80 3.90 4.00

Out-tasked (selected services only)

Hybrid (some outsourced, some inhouse)

Fully outsourced

Average Score

31%

18%

27%

36%

53%

41%

32%

50%

40%

41%

28%

50%

23%

24%

6%

0% 20% 40% 60% 80% 100%

Total

USA

UK

Germany

France

Phase 1. We are currently optimising our office printer fleet, through device

consolidation

Phase 2. We have optimised our fleet and are now implementing document

workflow tools to improve business processes

Phase 3. We have moved beyond MPS to incorporate non-document related

services such as IT services


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Extended services

As the MPS market gains maturity, organisations moving beyond first generation engagements have often reached the end of theircost-cutting phase and are now looking for innovation to drive more business value. MPS providers are extending their services

beyond office printing to encompass the print room, business processes and the IT infrastructure.

The print room

For organisations managing a print room in-house or using a separate outsourced provider, there are significant benefits to be

gained by using a single MPS provider for both the office and the print room. Quocircas research reveals that 23% of organisations

use a single MPS provider for both environments, with an additional 45% indicating that they would be very interested (Figure 6).

Figure 6. What is your level of interest for using a single provider for the print room/CRD and office printing? (n=100

organisations using MPS)

This presents an opportunity for MPS providers with an established presence in both office and production printing to promote

the benefits of an integrated MPS to existing customers. Indeed there are a number of benefits from this approach. Production

print devices are often poorly utilised in the print room, and integrated production workflow tools can enable complex print jobs

to be re-routed from office printers to the print room, ensuring better overall optimised use of devices. Certainly, for large

organisations with high volume production printing needs, Quocirca recommends considering a single provider to drive better

utilisation of production devices and take advantage of cloud-enabled production print services as appropriate.

Business process services (BPS)

Leading MPS providers are more commonly offering BPS as part of wider MPS engagements, helping enterprises automate paper-

dependent processes such as payroll, claims, mortgage processing and accounts payable, which are full of time-consuming,

transaction-based tasks that can stifle productivity.

Quocircas research shows modest interest in using a single provider for MPS and BPS. Currently 13% indicated they already use a

single provider, with 20% very interested. Interestingly, this has not changed since last year, suggesting a potential lack of

awareness or understanding on the synergies between MPS and BPS. US enterprises are the most receptive to using a single

provider with 28% expressing an interest compared to just 16% in the UK and Germany.

23%

45%

21%

11%

Already use a single provider

We would be very interested in using a single provider

We would be slightly interested in using a single provider

We would not be interested in using a single provider


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Figure 7. What is your level of interest for using a single provider for MPS and Business Process Services (BPS)? (n=100

organisations using MPS)

IT Services (ITS)

Several MPS providers are promoting their IT services (ITS) capabilities as an extension to their MPS offerings. Often, this relates

to print server management and help desk integration. Overall, 20% currently use a single provider use a single provider for MPS

and ITS and an encouraging 31% indicated strong interest (Figure 8). Again, the US is most receptive to this approach, with over a

quarter of respondents indicating they already use a single provider to manage the print and IT infrastructure.

Figure 8. What is your level of interest for using a single provider for MPS and IT services (ITS)? (n=100 organisations using MPS)

13%

20%

33%

34%





20%

31%23%

26%






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Vendor assessment

Quocirca has created a vendor scorecard for each MPS provider, based on a range of criteria that determines an overall score for

market presence and completeness of offering. Each score is on a scale of 1 to 5, where 1 is weak and 5 is very strong. Thisevaluation of the MPS market is intended as a starting point only.Please note that Quocirca's scoring is based on an un-weightedmodel although prospective buyers may wish to weight the scores to meet their own specific needs.

Market presence criteria

Enterprise customers: the strength of the vendors European enterprise customer base. Strategy: how comprehensive is the vendors MPS strategy, the quality of its overall value proposition and its

evolutionary vision for MPS?

Maturity of offerings: how long has the vendor been active in the market; how developed are its offerings? Geographic reach: a vendors geographic reach, either directly or through partners or channels. Overall financial strength: a vendors overall financial position and assessment of the scope for future investment in its

MPS offering.

MPS revenue and growth: European MPS revenue and growth over the past year. Market credibility: the effectiveness of vendor initiatives to promote its brand, increase awareness of its service offering

and influence market development. Also includes the clarity, differentiation and internal/external consistency of the

vendors market messages.

Alliances and partnerships:The strength of the vendors partner and alliance network. Investment and dedicated resources:The vendors investment in its MPS portfolio, resources, and its innovation that

will add improvements in approach, process, or service offering.

Completeness of offering

Modularity of services: the flexibility and scalability of the service portfolio to provide a customised offering. Breadth and depth of service offering:the range of services available, including complementary ones such as business

process outsourcing (BPO), IT outsourcing (ITO) and document process outsourcing (DPO).

Help desk capabilities:centralised help desk capabilities and integration, remote diagnostics and support. CRD/production printing:print room/production printing services to support high volume printing requirements. Multi-vendor support and maintenance:the vendors ability to service and support third party products. Mobile printing support: capabilities to support mobile workers, either through mobile device printing or pull

printing/authenticated secure printing.

Document workflow integration:integration with third party products and services.Figure 9 represents Quocircas view of the competitive landscape for printer and copier vendors that deliver enterp rise MPS. A

vendors market position is indicated by the size of the bubble, based on estimates of customer base. An indication of the growth

in each vendors position is shown by a (+), ( -) or (=). The following categories are used to reflect a vendors position:

Market leaders:vendors that lead the market in both strategic vision and depth of service offering. Leaders have madesignificant investments in their service portfolio and infrastructure and are supported by strong delivery capabilities.

Strong performers:vendors that have established and proven offerings supported by demonstrable customer success. Contenders: vendors that have service offerings that are currently being aligned on a global or European basis.

Contenders are typically investing in resources, infrastructure and partnerships to expand market coverage.


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Figure 9: Quocirca MPS vendor positioning

* Customer base: Please note that enterprise customer figures and estimated devices under management have been considered whendetermining customer base bubble size.

Vendor highlights

As can be seen in Figure 9, every vendor has been given a +rating, denoting an improvement for each vendor in their MPS offering.

Quocirca has seen the MPS market gaining maturity and emerging from first and second generation offerings, leading to

improvements in all vendors offerings as new functions and capabilities have been added to the core offering, as well as through

BPO and ITS services. Many of the vendors are also investing heavily through acquisitions and adapting their portfolio to changes

in the overall IT market, such as BYOD and mobility.

Market leaders: Xerox, HP, Ricoh, Lexmark, and Canon

Market leaders possess diverse strengths with a wide global presence and have prioritised their efforts and investments to win in

this highly competitive marketplace.Prospective buyers will find these providers differ in their individual strengths by industry,

geography and service line but all articulate a strong MPS proposition for enterprise customers.

Xerox: Xerox has retained its leading position in Quocircas evaluation of the MPS market, buoyed by continuedinvestment in its mature MPS portfolio. An early leader in the market, its key strength is the depth and scale of its service

offering, which encompasses office printing, production printing, as well as IT services (ITS) and business process services

(BPS). Xerox has deepened its broad range of assessments services, leveraging its 2011 acquisition of NewField IT

technology. This forms the backbone of its comprehensive assessment offerings, which include CompleteView Pro, a

visual dashboard for the entire print environment, and its latest workflow assessment and document analytics services.


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The latter service, in particular, is unique to Xerox in providing an in-depth analysis of how, why and where paper

documents are used and shared within an enterprise. Xerox is also actively expanding its solutions portfolio. It now offers

a comprehensive suite of security offerings to help enterprises control and protect document security. Building from its

existing partnerships with McAfee and Cisco, Xerox now offers a Print Security Audit Service and a Secure Print Manager

Suite. Xerox is looking to uncover further opportunities for business process optimisation, which will also enable it to

leverage its BPO expertise to drive additional productivity improvements for its customers.Xerox Content ManagementServices leverages its DocuShare platform, which, although a mature offering, has so far not been fully exploited as part

of MPS engagements. With close integration with Xeroxs hardware portfolio, including its ConnectKey MFP products, its

new Workflow Automation Suite will enable Xerox to drive further productivity and efficiency gains for its customers.

HP:HP has retained a leading position in the MPS market due to its broad service offering and extensive solutionsportfolio. HP has the breadth and scale to operate in all areas of the imaging and printing industry, covering consumer,

SMB, enterprise and commercial print. It offers a scalable MPS offering, supported by a comprehensive hardware range,

from office to light production printers, along with a growing software portfolio. In December 2013, HP announced an

OEM deal with Sharp for its new S900 Series of light production MFPs, expanding its product line for enterprises with

higher print volume/finishing option needs. HPs MPS strategy aligns with HPs New Style of IT company strategy, which

is based on four technology enablerscloud, security, big data/digitisation, and mobility. HP continues to strengthen its

solutions to support the convergence of these trends. This includes new cloud-enabled capabilities, enterprise mobile

print capabilities, expanded security products and services, and enhanced digital workflow through its Flow MFP range

of hardware and software. Overall, HP has built a strong MPS proposition. Its dominance in the printer market and strong

network and infrastructure management credentials has enabled HP to build a strong market presence in both theenterprise and SMB space. While it continues to accelerate its partner-led MPS initiatives, at the enterprise level HP is

able to leverage the BPO and ITO capabilities of its Enterprise Service organisation. With broader IT expertise, in areas

such as the cloud, big data, and mobility, than some of its traditional print competitors, HP has the credentials to be a

valuable strategic partner for enterprises looking to deepen their MPS engagements.

Ricoh: Ricoh retains a leadership position in the MPS market, boosted by a 14% growth in its global MPS business in FY13. It continues its transformation to a services-led organisation, with expanded investment in IT services and BPO

capabilities. Ricoh states that it has over 4,000 MPS engagements worldwide with in excess of 1 million devices under

active management. Its mature and broad MPS portfolio is centred on the transformation of business processes. To

support this approach, Ricoh is actively enhancing its IT services, as well as its ECM and BPO capabilities. Ricoh has made

strategic investments related to services in the last twelve months including the acquisitions of mindSHIFT Technologies

Inc., a leading managed print service provider, Aventia and inspireIT, as well as a strategic investment in Avanti Computer

Systems Limited, a leading provider of print management information systems, among other global acquisitions. Ricohsstrong heritage in the production print market has enabled it to effectively manage both the office and production print

environments for its customers and Ricoh estimates that it is managing both environments for 4060% of its MDS

customers. Ricohs range of production print services includes variable data print for customised communications, a

digital mailroom to automate classification and distribution of mail, and electronic invoicing. Ricoh continues to extend

its MPS engagements to help its customers streamline business-critical processes. Its MDS Process Analysis evaluates

single or multiple business processes to recommend improvements such as elimination of bottlenecks and better

integration with customer line of business (LOB) and/or enterprise content management (ECM) systems. Ricoh has

applied its business process expertise in sectors such as the financial services and healthcare, implementing digital

workflows and improving operational efficiency.

Lexmark:Lexmark continues to strengthen its position as a leader in Quocircas evaluation of the MPS market. Since its$280 million acquisition ofPerceptive Software in 2010, it has transformed its overall business, deepening its business

process expertise. Its strong position in the market is boosted by a mature service portfolio and its industry-leading

business process expertise, which is becoming a key differentiator in the market. It continues to see strong growth in itsMPS business, which increased by 16% globally in 2013. A major focus of Lexmarks MPS offerings has been on adding

value to a customers business processes. The $54m acquisition of PACSGEAR, a healthcare ECM (enterprise content

management) provider, in October 2013, is the latest in a string of ECM, business process, search and industry-specific

acquisitions that have broadened Lexmarks reach and bolstered its Managed Print Services (MPS) market leadership

position. Most recently, Lexmark made a tender offer for ReadSoft in May 2014, a global provider of software solutions

that automate business processes both on premise and in the cloud, to further expand and enhance its business process

and industry domain expertise and document processing capabilities, particularly in Europe. Industry expertise is a key

strength for Lexmark. Its industry teams are organised across eight specific industry groupsbanking, insurance, services,

retail, manufacturing, health care, education, and the public sector. A competitive advantage for Lexmark is its

customisation capabilities. By owning its own services, solutions, software, firmware, and product technology, rather

than partnering, it has the ability to quickly respond to customisation requirements.
http://www.perceptivesoftware.com/http://www.perceptivesoftware.com/


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Canon:Canon continues to strengthen its presence in the MPS market, particularly in the US and European regions.Global MPS revenue grew by 12% in 2013, with European MPS revenue increasing by 30%. Its Managed Document

Services (MDS) approach is most advanced in Europe, which accounts for almost 35% of its global MPS revenue. MDS is

backed by a comprehensive range of hardware, software and an established global service delivery network. Canons

Global Services group plays a key role in expanding Canons global MPS engagements. Canon offers a globally consistent

MPS methodology based on industry standard IT infrastructure library (ITIL) methodology. Its five-phase approach

provides a single source of accountability at each stage of the MPS engagement, namely Discover; Design; Implement

and Transition; Support and Manage; and Review. Canon has a strong product portfolio across office and production

devices. Its latest imageWARE ADVANCE range is designed to have extensive workflow capabilities, including new

middleware technology that integrates with enterprise applications (such as ERP, CRM or ECM), cloud-based services and

mobile devices. Canon has developed a broad software ecosystem around its imageWARE ADVANCE range including its

Therefore document management solution, I.R.I.S. document recognition and its long-established uniFLOW print

management tool. Canon has an established global BPO service, inherited through the acquisition of Oc. Services include

accounts payable, eDiscovery, Records and Imaging Services, Mail and Print services, and Information Management. In

Europe, Canon is working to articulate a BPO strategy and link this to its broader MPS offerings.

Strong performers: Konica Minolta, Kyocera Document Solutions and Toshiba

Konica Minolta:Konica Minolta has accelerated momentum in the MPS market. It continues to see impressive globalMPS revenue growth of over 50% with its Optimized Print Services (OPS) program, which is now a central part of its value

proposition. Today it has more than 6,400 OPS customers globally, 61% of which are based in Europe, with approximately

200,000 devices under active management. In 2013, Konica Minolta achieved a number of global MPS wins as it works

to boost its global presence. Konica Minolta has had most success within the manufacturing and logistics sectors and

this remains a significant sector for Konica Minolta in terms of MPS demand. Konica Minoltas sweet spot is mid-size

organisationsup to 1,000 userswhich accounts for around 60% of its customer base. In Europe, 30% of its revenue is

generated through indirect sales. Konica Minolta continues to invest heavily in supporting its channel to shift to a

solutions and services model, both in the US and across Europe. Konica Minoltas strong heritage in the colour production

print market is a key differentiator, across Europe in particular office-based MPS is being extended to include

consultancy for centralised reprographics, print room, and commercial print environments. Konica Minolta is looking to

leverage its service delivery reputation in this market to drive the provision of fully managed services across both office

and production print. Quocirca believes that Konica Minoltas M&A strategy will continue to extend its MPS proposition

to a wider customer base.

Kyocera Document Solutions:Kyocera continues to expand its MPS penetration, particularly in the European mid-sizebusiness space. Kyocera Document Solutions has spent the past two years evolving its growing MPS offering, known as

Kyocera Managed Document Services (MDS). It still has some progress to make in accelerating its services and software

strategy, which, to date, has seen most success in Europe. European MPS revenue grew by 32% in 2013, and now accounts

for over 40% of its global MPS revenue. Kyocera now manages almost 180,000 devices in Europe, more than doubling its

devices under management from 2012. Kyocera Document Solutions adopts a five-phased MDS approach, which includes

Assessment, Design, Implement, Manage, and Optimisation. It offers a range of standardised services encompassing fleet

audit, proactive support and consumables replenishment, change management, reporting and review, and de-

commissioning and disposal of a retired fleet. A key differentiator for Kyocera is sustainability, through its long-life

ECOSYS technology, which is known for high reliability, low total cost of ownership (TCO) and reduced environmental

impact. Kyoceras focus on smaller companies means its MDS offering is tailored to deliver the core MPS services rather

than the broader business process services that some of the leading players in the market are offering. Quocirca expects

Kyocera to build out its business process automation capabilities, leveraging its HyPAS integrated platform. The nature

of Kyoceras channel focus also means it should consider partnering with the broader IT service channel to integrate its

MDS offerings and reach a wider market.

Toshiba:Toshiba has an established MDS offering in the US and Europe although its strategic approach differs by region.Overall, its European MPS business grew by 25% to reach 66 million Euros revenue in 2013. Today, Toshibas MPS

business is strongest in the US where it has built the Encompass brand over the past decade. In Europe, its MDS business

is growing rapidly and it is developing a sustainability strategy around its MDS offering. This is based on its e-STUDIO306LP

MFP paper reusing system which prints documents in erasable toner and erases documents for reuse making more

effective use of paper. This is alongside its Energy Manager software which allows IT administrators to easily implement

policies for energy usage profiles on PCs and Toshiba MFPs. Based on a long established Carbon Zero CO2 offsetting

initiative and optimised Eco-settings for regular MFP products, Toshiba has bought these elements together to form its

ECO-MDS offering. Quocirca expects Toshiba to expand its MPS offering in Europe over the coming year as its builds out

its strategy and expands its channel partnerships.


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Recommendations

Organisations today need to look for a managed print service provider that will not simply keep the lights on but have a

transformative impact on the business.

Whilst some enterprises may be at the early stages of their MPS journey, many are now entering their second or third generation

MPS contracts. Although cost control remains a top priority, enterprises are also looking to drive wider productivity and business

process improvements. Consequently enterprises are looking for next generation MPS providers to become true innovation

partners with industry-specific business insight and services that will deliver new cost savings.

Quocirca recommends taking the following action to maximise the benefit from MPS, and ensure it can drive greater business value

and sustained long term performance.

Think big, start small.MPS engagements vary widely in scope depending on business needs. New opportunities exist tonot only extend the scope of MPS engagements to encompass all aspects of enterprise printing (office, mobile,

production and commercial), but also improve performance by outsourcing higher-value services such as IT operations

and business processes. Consider how well the scope of services matches your business needs. Is it possible to start with

a limited engagement and add services as business requirements evolve and/or your relationship with your MPS provider

beds in?

Conduct a full evaluation of the print infrastructure. A detailed assessment is the foundation of an effective MPSengagement and should take a holistic view of all print-related processes. Things to check include: is an established

methodology used? What scalability is offered in terms of depth and cost of assessments? At the minimum, this should

include a full document analysis that analyses print usage across the enterprise. Additional assessment services to

consider include environmental impact and document security. Some vendors also offer document workflow assessment

services, which identify potential for business process improvements. A comprehensive assessment will ensure the

greatest opportunities for cost savings and productivity improvements over the term of a contract.

Evaluate the flexibility to add new services.As a business continually adapts to the marketplace, MPS agreements shouldbe adaptable as well in terms of the commercial offering, contract arrangements, staffing, and delivery location etc.

When agreeing on the service offering, negotiate for the flexibility to incorporate new capabilities. For example, next

generation MPS may look to take advantage of evolving technologies such as cloud, mobility, business intelligence, and

ITIL-based process methodologies to ensure that business objectives continue to be met throughout the duration of the

contract.

Leverage MFP sophistication.Multi-function peripherals (MFPs) are often underutilised in the office environment, yethave powerful document workflow capabilities that can be integrated with key business processes such as HR, legal, and

finance and accounting. Look for seamless integration of MFPs, either via the cloud or on-premise, with enterprise

content management (ECM) systems that can optimise paper-to-digital workflows and improve productivity.

Ensure mature service level quality.SLAs are critical to the success of any MPS engagement. SLAs have to be flexible,and the MPS provider must use analytics to be able to advise on past performance and future requirements. Are service

levels matched to your business needs (hours of services, problem resolution times, end-user productivity)? How does

the provider handle service events in a multi-vendor environment? Is a pre-emptive service and automated supplies

management used to reduce response times and solve device problems? Is on-site or off-site support available?

Continuous improvement.Monitoring and ongoing management is critical to ensure that the MPS adapts to changingbusiness needs. This requires governance throughout the contract, which should place a high emphasis on service

analytics, reporting, and communication. A governance programme allows the parties to evaluate address and resolve

service issues as and when they arise.


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About QuocircaQuocirca is a primary research and analysis company specialising in the business impact of information technology and

communications (ITC). With worldwide, native language reach, Quocirca provides in-depth insights into the views of buyers and

influencers in large, mid-sized and small organisations. Its analyst team is made up of real-world practitioners with first-hand

experience of ITC delivery who continuously research and track the industry and its real usage in the markets.

Quocirca works with global and local providers of ITC products and services to help them deliver on the promise that ITC holds forbusiness. Quocircas clients include Oracle, Microsoft, IBM, O2, T -Mobile, HP, Xerox, EMC, Symantec and Cisco, along with other

large and medium-sized vendors, service providers and more specialist firms.

For more information, visitwww.quocirca.com.

Disclaimer:

This report has been written independently by Quocirca Ltd. During the preparation of this report, Quocirca may have used a

number of sources for the information and views provided. Although Quocirca has attempted wherever possible to validate the

information received from each vendor, Quocirca cannot be held responsible for any errors in information received in this manner.

Although Quocirca has taken what steps it can to ensure that the information provided in this report is true and reflects real market

conditions, Quocirca cannot take any responsibility for the ultimate reliability of the details presented. Therefore, Quocirca

expressly disclaims all warranties and claims as to the validity of the data presented here, including any and all consequential losses

incurred by any organisation or individual taking any action based on such data and advice.

All brand and product names are recognised and acknowledged as trademarks or service marks of their respective holders.
http://www.quocirca.com/http://www.quocirca.com/http://www.quocirca.com/http://www.quocirca.com/

Quocirca Managed Print Services Landscape, 2014

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