Quocirca Printer Pulse June 2011
Transcript of Quocirca Printer Pulse June 2011
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expensive and ine-
cient for businesses,
parcularly as manysmaller businesses have
limited resources to
carry out admin and
support tasks.
Quocirca believes that
the next year will see
more midmarket busi-
nesses engaging in MPS
contracts. The SMB
market might be a hard-
er nut to crack as it ishighly reliant on reseller
resources and skills to
sell MPS contracts in
favour of the transac-
onal sale. However,
many vendors are em-
barking on MPS channel
training programmes to
ensure that their re-
sellers can deliver MPS
using the vendors host-
ed MPS infrastructure.
But although the tools
and infrastructure for
resellers are certainly
thereit remains to be
seen how ready and
recepve the channel
will be to this new way
of selling prinng, rather
than printers.Louella Fernandes
Principal Analyst
he MPS market
has seen a waveof consolidaon with
Xerox and HP both ac-
quiring compa-
nies which will boost
their capabilies in the
midmarket.
Xeroxs acquision of
NewField IT is essenally
a formalisaon of an ex-
isng relaonship. Xeroxhas for some me been
using Asset DB, its ag-
ship product, as part of
its assessment and op-
misaon services within
the Xerox Partner Print
Services (XPPS) pro-
gramme. Meanwhile,
HPs acquision of
Printelligent provides it
with an established set ofmul-vendor services
and tools for its channel
to deliver MPS to its end-
customers. A full analysis
can be found on page 10.
A less high prole acqui-
sion was the purchase
of Document Express, a
UK-based Xerox conces-
sionaire and MPS provid-
er by Danwooda $10M
revenue, leading MPS
provider in the UK.
The market is certainly
heang up, and the
SMB and midmarket isthe new baleground
where vendors are
striving to gain share.
These channel-led mar-
kets represent a huge
opportunity for vendors
and their resellers to
capture ongoing reve-
nue opportunies
through selling a mix of
basic MPS contractswhich include hard-
ware, service and sup-
port to more sophis-
cated engagements
which include assess-
ment and opmisaon
of more complex mul-
vendor environments.
It will not be an easy
transion for the IT
reseller channel, who
are used to selling hard-
ware on a transaconal
rather than on a con-
tractual basis. But by
doing this they are
missing out on the op-
portunity for recurring
consumable sales as
most customers tend to
purchase supplies and
consumables on an ad-
hoc basiswhich is
S M B A N D M I D M A R K E T P U S H S P U R S M A R K E T
C O N S O L I D A T I O N
Quocirca Printer Pulse
JUNE 2011
INSIDE THIS ISSUE:UNBURDENING
THE CIO: THE
BUSINESS VALUE
OF MPS
2
ENDPOINT SECU-
RITY: ERASING
THE PRINTER
THREAT
4
WILL
SMARTPHONES
HERALD THE ERAOF UBIQUITOUS
PRINTING?
6
HPs VISION for
CLOUD and MO-
BILE PRINTING
8
PITNEY BOWES:
TRYING TO PUT
ITS STAMP ON
THE SOFTWRE
WORLD
10
THE BATTLE FORCHANNEL MPS
HEATS UP
12
CONTACT
For further informaon
on Quocirca or its ser-
vices please contact:
Louella [email protected]
Tel: 07786 331924
www.quocirca.com
T
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CIOs have
long been
focusing on
making IT a driver for
growth, using strategies
such as IT consolidaon
and simplicaon to cre-
ate business value with
limited spend. Frequent-
ly, prinng is an aer-
thought when it comesto controlling and man-
aging IT costs.
Despite the abundance of
printed communicaons
across businesses of all siz-
es, few CIOs are aware of
the cost, complexity or risk
of operang an unmanaged
print environmentall of
which can be migated
through using a managed
print service (MPS).
The reality that faces many
businesses is a print envi-
ronment that is out of con-
trol. A patchwork of devices
from dierent manufactur-
ers requiring dierent sup-
plies, service contracts and
soware means that it is
almost impossible to have a
single view of what is being
printed, by whom and
where. Whilst todays mul-
funcon peripherals
(MFPs) are sophiscated
document processing hubs
which can capture, print,
copy and store with speed
and convenience, their net-
work connecvity and abil-
ity to store data on hard
drives brings inherent secu-
rity risks.
Failure to protect and
manage these devices
can leave an organisa-
on exposed to both
spiralling costs as well
as security risks.
Some enterprises are
now turning to MPSto
reduce the cost, com-
plexity and risk associ-
ated with an unman-aged print infrastruc-
ture. It is esmated that
up to 30% can be saved
on prinng costs
through the use of
MPSbut the value can
extend well beyond the
basic cost. MPS can
create business val-
ueby using exisng
resources more produc-
vely, allowing a busi-ness to focus on core
competencies while
outsourcing non-core
prinng funcons such
as service and support.
As well as providing
exibility, skills and
technology, MPS can
also improve the pre-
dictability of expendi-
ture on an Opex basis
while removing thehardware costs from
the Capex budget.
MPS provides an assess-
ment of the exisng
device eet, analysing
print usage and then
determining a consoli-
daon and on-going
management strategy
that aims to maximise
producvity while re-ducing costs. Sharing
fewer devices amongst
more users, replacing
out-dated single func-
on printers with MFPs
and implemenng
workow soluons can
all help reduce both
nancial and environ-
mental costs, ghten
document security and
boost ulisaon rates.
Centralised manage-
ment tools oer re-porng and auding
capabilies which pro-
vide enterprises with
the visibility they need
to understand print
costs.
Quocirca esmates that
around 20% of enter-
prises have adopted
some level of MPS, with
more businesses begin-ning to evaluate it. To-
day the market is highly
compeve and domi-
nated byXerox and HP.
Both companies conn-
ue to expand their
oerings in a bid to
capture enterprise
mindshare. But despite
the clear benets of
MPS, it has yet to reach
the radar of prioriesfor the majority of CIOs,
for whom prinng is
oen the poor relaon,
sing on the periphery
ofthe IT infrastructure.
This could be about to
change as CIOs are in-
creasingly focused on
technologies and modu-
lar services which can
be deployed cheaply,scaled quickly and easily
adapted.
U N B U R D E N I N G T H E C I O : T H E B U S I N E S S V A L U E
O F M A N A G E D P R I N T S E R V I C E S
Page 2P R I N T E R P U L S E J U N E 2 0 1 1
Mulfuncon
devices pose the
same security
risks as any
other networked
device.
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Quocirca believes the fol-lowing three CIO priories
can be achieved through
MPS:
Reducing costs: Tech-
nologies such as virtu-
alisaon, cloud com-
pung and managed
services all allow busi-
nesses to adjust costs
and resources quickly,
as required. As a corepart of a managed
services strategy, MPS
can deliver high per-
formance whilst help-
ing to control costs
and allow companies
to benet from an
opmised print infra-
structure with mini-
mal (or oen no) capi-
tal investment. MPS
can be scalable andbenets companies of
all sizes.
Reducing risk: Infor-
maon security is high
on the agenda for
every CIO, yet few
appreciate the risks
that todays advanced
MFPs bring. Without
taking the correct con-trol of the print envi-
ronment, businesses
are leaving them-
selves wide open to
condenal or sensi-
ve data being lost or
hijacked. These risks
can be easily migat-
ed by implemenng
soluons such as pull
prinng which en-
sures documents areonly released on au-
thencaon, en-
crypng hard drives
of MFPs and auding
usage of features
such as scan to email,
print or copy.
Enterprise mobility:
Mobility soluons
should become a key
component of MPS,
as an esmated 60 to
80% of employees
are mobile workers
whether on the road
or working from
home. Soluons such
as pull prinng and
universal print drivers
enable employees to
access documents
from any locaon
within a managed
print environment.
Meanwhile, soluons
such as ePrint from
HP provide direct
mobile prinng capa-
bilies. These types
of soluons can be
wrapped up within
MPS, and enable en-
terprises to provide
their employees with
the highest level of
print producvity.
Businesses now have a
growing choice of MPS
oerings from vendors
such as Canon, HP,
Lexmark, Ricoh and Xerox.
When evaluang provid-
ers businesses need to be
aware that cost is only
one issue, with risk mi-
gaon and value creaon
being just as important.
Therefore, enterprisesshould pay close consider-
aon to the skills, perfor-
mance, SLA exibility and
customisaon capabilies
of any potenal provider.
T H E B U S I N E S S V A L U E O F M P S
Page 3P R I N T E R P U L S E J U N E 2 0 1 1
Read Quocircas
latest report on
the MPS market:
MPS Comes of
Age.
http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912 -
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Endpoint security
is a crical part
of any organisa-
on's data-loss
prevenon strategy,
yet networked printers
oen present intruders
with an open door.
Most rms understand thatsecuring network endpoints
against the risk of accidental
or deliberate security
breaches is important. But
while most companies have
anvirus soware, rewalls,
email and web-content se-
curity to protect against
external threats, few realise
that unsecured networked
printers and mulfuncon
peripherals can exposeholes in their informaon
security coverage.
The recent data breach at
the City of York council over
sensive informaon being
distributed aer being inad-
vertently collected from a
shared printer highlights the
security vulnerabilies in-
herent in the use of shared
printers.
The move to shared printers
is oen the result of device
consolidaon performed
under a managed print ser-
vices contract, which aims
to reduce the spiralling
costs of an unmanaged
printer estate by replacing
desktop and personal print-
ers with advanced mul-
funcon peripherals.
Such devices oen operate
as sophiscated docu-
ment-processing hubs
with capabilies to scan
to email or le desna-
ons, as well as holding
copies of documents
sent for prinng on lo-
cal hard disk drives in
addion to the stand-
ard funcons of print,
copy and fax.
While mulfuncon
peripherals have
brought speed and con-
venience to the oce,
more than oen they
are unmonitored and
unsecured, allowing
sensive or condenal
data to fall into the
wrong hands, either
intenonally or inad-
vertently.
Points of vulnerability
include output trays
where documents may
be le unclaimed and
the data stored on the
internal hard disk
drives. Fortunately,
there are simple ways
of migang these
risks, either using built-
in security features oradvanced security op-
ons, depending on the
level of security need-
ed.
The security landscape
for prinng is complex
and characterised by a
mix of manufacturer
soware tools and third
-party products. A mul-
funcon peripheral's
built-in security fea-
tures may include inte-
grated hard disk drive
overwrite capabilies that
enable the automac eras-
ure of sensive data from
the printer's hard disk
aer the le has been pro-
cessed.
Advanced products may
oer hard disk encrypon,
which enables address-
book data, authencaoninformaon, archived doc-
uments and so forth to be
encrypted before being
saved to the hard disk. For
enhanced security, docu-
ment data can itself be
encrypted during trans-
mission. Canon, for in-
stance, through its uniFlow
tool, can also detect the
type of document being
printed and determine ifthe user actually has the
rights to print the job.
One of the easiest ways to
eliminate the common
problem of unclaimed out-
put in printer trays is
through user authenca-
on or pull prinng. Au-
thencaon can be
through user ID, smart-
cards or biometrics andcan be enabled either
against the mulfuncon
peripheral or an external
authencaon server such
as Microso's Acve Direc-
tory.
Pull prinng enhances
security by releasing docu-
ments only when users are
physically at the printer.
But there are other bene-
ts. Where pull prinng is
shared among a pool of
E N D P O I N T S E C U R I T Y : H O W T O E R A S E P R I N T E R
T H R E A T
Page 4P R I N T E R P U L S E J U N E 2 0 1 1
Mulfuncon
devices pose the
same security
risks as any
other networked
device.
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printers, it also promotesmobility by allowing users
to release documents at
any convenient printer and
reduces waste by elimi-
nang unclaimed output.
Probably the cheapest
opon is user authenca-
on, which is enabled by
embedded technology at
the device level and con-
trolled by the device driv-er. This soluon is oen
the least expensive opon
because it is a standard
feature on devices such as
those from Canon, HP,
Ricoh and Xerox.
Third-party products from
vendors such as Equitrac
and SafeCom also oer job
-roung to alternave de-
vices and can also operateacross a mixed eet envi-
ronment.
However, third-party prod-
ucts may have limitaons
for diverse printer eets
that use diering printer
languages and drivers
which can lead to incon-
sistent output reliability
depending on which print-
er a job is released at. Forinstance, if a print job is
submied to a queue with
specic requirements such
as stapling, it can only be
rerouted to a printer with
that funconality, and the
soware has to support
the funconality on that
printer.
One tool that overcomes
this is Canon's uniFlow
universal driver, which
noes the user if the
print job can be fullled at
their chosen device - for
example, if it supports the
required nishing func-
ons. uniFlow supports
the majority of manufac-
turers' oce mulfunc-
on peripherals, although
it is parcularly custom-
ised to Canon MEAP-
enabled devices.
By using authencaon,
all print acvity is logged
and can be reported on,
and most mulfuncon
peripherals now provide a
full audit trail of acvity
for tracing unauthorised
access. This feature is
parcularly helpful in the
case of a breach, as the
source can be quickly
idened .
Of course, there will be
cost implicaons in choos-
ing whether to ulise built
-in security features or
third-party products that
have the associated li-
censing and support costs.
The market remains
somewhat disjointed -
between manufacturers'
own products and thethird-party tools from
independent vendors.
Cost-eecve unied ap-
proach
Quocirca believes the
opportunity for a cost-
eecve unied approach
that works across printer
brands, parcularly for
large enterprises, has yet
to be fully exploited. Cer-
tainly, independent ven-dors such as Equitrac are
well posioned to provide
such capabilies through
its partnerships with the
major manufacturers,
while products such as
uniFlow also have strong
mulvendor secure-
prinng capabilies.
The simplest and quickest
approach is to enablebuilt-in security features
that can minimise the risk
of documents falling into
the wrong hands. In the
long term, businesses
should gain control of
their printer eet through
a managed print service
that will enable them to
measure what is being
printed, by whom, and
deploy layered securityfeatures dependent on
their security needs.
Printers and mulfuncon
peripherals are not going
away and will remain a
signicant network end-
point for some me. Ig-
noring the potenal risk
of leaving these devices
unsecured can have seri-
ous implicaons for anybusiness.
E N D P O I N T S E C U R I T Y : H O W T O E R A S E P R I N T E R
T H R E A T
Page 5P R I N T E R P U L S E J U N E 2 0 1 1
Read Quocircas
latest report on the
MPS market: MPS
Comes of Age.
http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912http://www.it-analysis.com/services/outsourcing/paper.php?paper=912 -
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Since the release of the
iPad in 2010, the market
has become awash with a
variety of mobile print
soluons including Apples
AirPrint, HP ePrint, Ricohs
HotSpot prinng and
Google Cloud Print to
name but a few. Many
printer vendors are bank-
ing on the soaring demand
for smartphones and tab-lets to revitalise the oppor-
tunity for prinng, in the
oce, at home and on the
move.
With projecons that
smartphone sales will reach
300 million worldwide in
2010 and up to 55 million
tablets forecast to be sold
this year, the opportunity is
signicant, even if only asmall proporon of users
actually need or want to
print. But as the two walled
gardens of printers and
mobile devices come to-
gether, are vendors in dan-
ger of over-complicang an
essenally simple process?
The mobile and print
worlds are remarkably simi-
lar in many ways. In themobile world, data and
applicaons are increasing-
ly the keys to opening up
new revenue opportunies
for device manufacturers
and plaorm providers. In
the printer world, pages
are king as it is the ink on
pages that drives revenue
more than the hardware.
The collision of two mar-kets driven by proprietary
plaorms has created chal-
lenges in developing
universal prinng capa-
bilies across mobile
plaorms.
So, faced with a diverse
mobile device plaorm
landscape, it is unsur-
prising that it has
spawned such a wide
array of mobile prinng
soluons from printervendors. Most of these
soluons are predicated
on sending a document
as an email aachment,
via the cloud, to a web-
enabled printer which
has an associated email
address. The excepon
to this is Apples Air-
Print which currently
supports prinng to HP
cloud-aware printersonlywhich include
HPs OceJet, LaserJet
Pro and PhotoSmart
printers.
HPs head start
HP has had a clear head
start in the market, be-
ing the rst (and so far
only) printer vendor to
oer direct support
through AirPrint. Butwhat are the opons
for businesses not using
HP printers that want a
reliable and universal
way to print to oce
devices from
smartphones or tab-
lets? One soluon is
HPs ePrint Enterprise,
part of an HP Managed
Print Service which ena-
bles BlackBerry users toprint to any network-
enabled printer. HP has
also just announced
that ePrint Enterprise
now also support
iPhones and was ex-
tended to Android de-
vices in May 2011. Ricoh
and Xerox also have
their own soluons
which require emailing
a document to a regis-
tered printer. One nota-
ble and recent addionto the mobile prinng
fray is from EFI, the pro-
vider of Fiery controllers
for MFPs from a variety
of manufacturers
including Canon, Xerox,
Ricoh and Konica Minol-
ta.
EFI PrintMe Connect
Interesngly, EFIs
PrintMe cloud prinngsoluon was launched
nine years ago in re-
sponse to the need for
secure prinng for mo-
bile workers at locaons
such as hotels and air-
ports. PrintMe oers
automac discovery of
printers and their loca-
on, without the need
for printer drivers or
addional soware.
Documents are upload-
ed to the cloud through
either the PrintMe web
site, email, PrintMe
print driver or the
PrintMe smartphone
apps. Documents can be
printed through the
PrintMe server to any
PrintMe enabled printer
client.
PrintMe also supports
direct mobile prinng
W I L L S M A R T P H O N E S A N D T A B L E T S H E R A L D T H E E R A
O F U B I Q U I T O U S P R I N T I N G ?
Page 6P R I N T E R P U L S E J U N E 2 0 1 1
The collision of
two markets
driven by
proprietary
plaorms hascreated
challenges in
developing
universal
prinng
capabilies
across mobile
plaorms
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without the requirementfor the cloud. Documents
can be sent directly to
any Wi-Fi connected
Fiery driven printer. Its
latest addion, PrintMe
Connect for AirPrint sup-
ports the new AirPrint
plaorm and iOS 4.2
meaning users can print
easily from any applica-
on on their Apple de-
vice to any Fiery printer.
Once installed on the
network, PrintMe Con-
nect for AirPrint will
show all available Fiery-
driven printers as des-
naons on a users print-
er list. There is no need
for the individual user to
download an applicaon
or for the enterprise to
purchase a specic iOS-
enabled printer or up-
grade or modify exisng
printers or MFPs.
Of course, the quesonremains as to how much
mobile device users real-
ly want to printand if
there are no simple and
intuive ways to print, it
is likely that users will
just not bother.
But even if just a small
proporon of the huge
installed base of mobile
device users print, themarket represents signi-
cant incremental reve-
nue opportunies for
printer vendors.
Of all these vendors, it is
only HP that has really
put a clear stake in the
mobile prinng ground
and has certainly taken a
leadership posion in the
mobile prinng space,providing a simple and
eecve way to print
from Apple s latest gen-
eraon of iPhones, iPods
and iPads.
But where EFI can potenally
capture more mindshare is in
the enterprise environment,
where its Fiery-controller
devices are widely installed.
In the meanme, the market
will connue to be character-
ised by a mix of soluons
from printer vendors and
third party app developers.
EFI PrintMe Connect certainly
oers the potenal for ubiq-
uitous prinngat least in
the enterprise, but its success
will be on its partnerships
and joint-markeng with
printer and MFP vendors to
ensure enterprises fully un-
derstand how it can be de-
ployed to oer a simple and
secure approach to mobileprinng.
W I L L S M A R T P H O N E S A N D T A B L E T S H E R A L D T H E E R A O F U B I Q U I T O U S
P R I N T I N G ?
Page 7 P R I N T E R P U L S E J U N E 2 0 1 1
Even if just a
small proporonof the huge
installed base of
mobile device
users print, the
market
represents
signicant
incremental
revenue
opportunies for
printer vendors.
The Cloud Prinng Alliance is a partnershipstarted byCortado, a division of ThinPrint AG, together with
printer & Wi-Fi router manufacturers, hotspot providers, soware developers and mobile operators . As
the founder of the Cloud Prinng Alliance, Cortado oers the leading cloud prinng soluon for mobile
prinng. Cortado supports thousands of printer models from over 90 printer manufacturers worldwide.
Printers most suitable for prinng are those of Cloud Prinng Alliance manufacturers. Through close
cooperaon with Cortado, new printer models from alliance partners will be fully supported thereby
using printer drivers suitable for cloud prinng. Recommended printers from Cloud Prinng Alliance
manufacturers can be recognized by the Cortado Cloud Prinng Ready logo. Alliance partners include
Brother, Dell, Konica Minolta, Kyocera and OKI.
CORTADO: CLOUD PRINTING ALLIANCE
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cial printer hardware andconsumer printer hard-
ware accounng for 22%
and 11% respecvely. The
consumer market for
printers is highly commod-
ised, so HP is increasing
its focus on grabbing a
larger share of the com-
mercial market. Commer-
cial printer hardware ship-
ments growth is im-
portant, not only for reve-nue but also the supplies
revenue growth these de-
vices can deliver on an on-
going basis.
HPs vision for its IPG busi-
ness includes having an
ecosystem for on- and o
-ramps and a comprehen-
sive cloud-based
plaorm. In simple terms,
this means enabling usersto connect to any HP net-
worked printer, mulfunc-
on peripheral (MFP),
print shop and retail store-
front from any device,
securely and seamlessly
wherever the user is at any
one me. Behind this ob-
jecve is the goal to ul-
mately drive higher value
pages, such as colour
which generate muchmore revenue than black
and white pages, which in
turn drives supplies reve-
nue.
The mobile opportunity
HP also described its inno-
vaon around its web-
enabled printers, which
use the webOS plaorm.
Its ePrint service enables
prinng on any internetconnected device by send-
ing the output as an email
aachment directly to theprinter. HP has high hopes
for adopon of this among
home and business users
alike. It shipped 3 million
units of its web-enabled
printers in Q1 2011 and
expects to ship 20 million
by the end of this year.
Indeed, the advent of
smartphones and tablet
devices such as the iPadhas generated a new wave
in development of prinng
soluons for plaorms
such as the BlackBerry,
Android and iOS. As well as
ePrint, HP has also worked
closely with Apple to de-
velop direct prinng sup-
port for HP printers and
MFPs in the latest release
of AirPrint available on
devices running iOS 4.2 orlater. HP also announced
that it would provide sup-
port for Googles Cloud
Print later this year.
The launch of its webOS
TouchPad tablet also this
year will undoubtedly
bring nave driver support
into webOS for HP devices
and, as such, HP is well
posioned to integrate themobile and prinng experi-
ence for these devices
although it remains to be
seen how popular they will
be. While HP has brought
mobility to the forefront of
its print strategyother
vendors such as Xerox and
Ricoh have also released
products for prinng to
their printers and MFPs
from smartphones.
At its recent
Analyst Summit
in San Francis-
co, HP deliv-
ered a strong
vision on how it
aims to grow its prinng
revenues across consum-
er, SMB, enterprise and
commercial markets.
Whether it's consumer
web aware printers, retailpublishing such as Snap-
Fish, managed print ser-
vices (MPS) or digising
the commercial print pro-
cesses, HP demonstrated
a range of products and
services and an integrated
go-to-market strategy that
will enable it to extend
the reach for its vast
porolio.
HP certainly has a strong vi-
sion to integrate its cloud,
mobile and security oerings
and the one area where HP is
certainly able to exploit the
convergence of these trends
is prinng. HP has the tech-
nology experse in each of
these areas, to provide it with
a compeve advantage over
its tradional print and copiercompetors who are all look-
ing to capture more revenues
from products and services in
a mature market where HP
currently dominates.
HPs Imaging and Prinng
Groups (IPG) revenues grew
by 7% in 2010, and overall,
IPG accounted for 20% of
HPs revenue. Supplies reve-
nue represents 67% of overallIPG revenue, with commer-
H P ' S V I S I O N T O D R I V E M O R E P R I N T E D P A G E S B Y
H A R N E S S I N G T H E C L O U D , M O B I L I T Y A N D
C O N N E C T I V I T Y
Page 8P R I N T E R P U L S E J U N E 2 0 1 1
The advent ofsmartphones and
tablet devices such
as the iPad hasgenerated a new
wave in
development of
prinng soluons
for plaorms such
as the BlackBerry,
Android and iOS
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Growing service and soluonsrevenue
HP is also looking to drive high
value recurring business through
managed print services (MPS)
where it currently has 3,000 cus-
tomers. MPS is a burgeoning
market oering printer vendors
an opportunity to capture more
pages through managing oce,
commercial and producon print
environments. HP is already see-
ing the fruits of its joint go-
to-
market MPS acvies between
IPG and its Enterprise Business
(EB) unit. This has resulted in a
200% rise in joint IPG/ES total
contract value growth with 74%
of the HP enterprise funnel in-
cluding joint pursuits. HP also
indicated that its average deal
size is seven mes higher through
joint acvies.
HP is certainly well posioned tocapitalise on these joint opportu-
nies and the two groups seem
to be well aligned in their go-to-
market approach. HP intends to
further drive the value of MPS
contracts by increasing the sales
of aached document workow
soluons. In 2010, these account-
ed for 75% of its MPS contracts,
compared to 25% in 2008.
Having developed a strong service
porolio for enterprise clients, HP
is now building an infrastructure
for its channel partners to deliver
MPS to SMBs encouraging them to
move to a contractual model away
from tradional transaconal
sales. HP has developed Quick-
Page, a turnkey service oering
that provides billing, account man-
agement and nancing for channelpartners. This hosted infrastruc-
ture minimises the resources and
investment necessary for channel
partners to parcipate in the lu-
crave MPS market.
An expanding print service pro-
vider ecosystem
Accelerang the analogue-to-
digital transformaon in graphics
is another opportunity for HP to
drive supplies and page growth inthe commercial prinng market.
HP esmates that 1.46 billion pag-
es were printed on its high speed
inkjet presses in 2010. The fact
that over 95% of graphics pages
such as labels and packaging, sign-
age, publishing and collateral are
sll analogue clearly represents a
huge opportunity for HP.
H P ' S V I S I O N F O R D R I V I N G M O R E P R I N T E D P A G E S B Y
H A R N E S S I N G T H E C L O U D , M O B I L I T Y A N D C O N N E C T I V I T Y
Page 9P R I N T E R P U L S E J U N E 2 0 1 1
As a technology giant, HP has thebreadth and scale to operate in all
areas of the print industry
covering consumer, SMB, enter-
prise and commercial print. Its
vast integrated go-to-market infra-
structure sets it apart from some
of its competors, and certainly
the joint approach with its Enter-
prise Services business will boost
MPS revenues.
But in the enterprise and commer-cial print arena it faces s com-
peon from rivals such as Xerox
and Ricoh who are both adapng
their porolios to capture wider
enterprise print opportunies.
HP has got its nger in many print
pies, but it will be the ability to
execute on increasing page
growth through its product and
services that will ulmately drive
its revenues in the future.
MPS: HP and Endesa
In January 2008, HP and Endesa, S.A., Spains largest electric company, entered into a ve year MPS contract
in order to improve prinng costs and its environmental footprint through the more ecient maintenance
of its imaging and prinng eet. Endesa began the contract with 4,000 printers, scanners copiers and fax
machines across 280 sites in Spain.
Aer HPs Eco Assessment its print eet was reduced by 526 units, represenng a 19.4 per cent drop in units
and savings in energy consumpon of 39%. The corresponding page volume reducon resulted in 36% less
paper consumpon translates in 132,243 kg paper savings a year. Endesa was able to materialise costreducons of 42%
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bilies across its productrange.
PBBIs strategy is to help
its customers enable life-
me customer relaon-
ships through the applica-
on of Customer Commu-
nicaon Management
(CCM). PBBIs CCM com-
prises a set of core capabil-
iesdata, insights, strat-
egy and communicaonsthat help businesses ac-
quire, serve and grow the
lifeme value of their cus-
tomer base. CCM parcu-
larly focuses on creang
and delivering cost-
eecve mul-channel
communicaons
including print, email, web,
SMS and call centre inter-
acons.
A complex product range
PBBIs products for CCM
include soluons for docu-
ment composion, archive
and compliance, web self-
service and interacve
communicaons for cus-
tomer service representa-
ves. PBBIs MapInfo has
long been widely regarded
as the leading product for
locaon intelligence andgeographical informaon
systems (GIS) while its
latest acquision, Portrait
Soware, lls a gap in
PBBIs customer and data
analyc capabilies
which include data inte-
graon and data proling,
along with analycs prod-
ucts such as demographic
and psychographic data.
PBBI now certainly has arange of products to ena-
ble businesses to gain real
customer insight, parcu-
larly through geo-
demographic and psycho-
graphic analysis. PBBIs
advantages over some of
its competors are the
ability to go beyond tradi-
onal analyc segmenta-
on using either geo-
demographics or advancedpredicve modelling as
provided with Portrait
Soware. At one end of
the scale, PBBI is com-
peng against standard
CCM vendors such as HP
Exstream, Thunderhead
and GMC, while at the oth-
er end is also compeng in
the business intelligence
space with many smaller
analycs companies andthe large players, many of
who have made acquisi-
ons in the last few years
(e.g. IBM/Cognos, Oracle/
Hyperion, SAP/Business
Objects). If PBBI can simpli-
fy its messaging, it can
certainly be a real con-
tender in these markets.
Exploing the conver-
gence of digital and printcommunicaons
As the communicaons
landscape connues to
become more complex, as
online and oine channels
converge and the use of
social media grows, busi-
nesses must nd a way to
manage business process-
es across all these chan-
nels. Many of its custom-
ers are undoubtedly oper-ang print and digital com-
Pitney Bowes has
long been a goli-
ath in the me-
tered postage
market with
around an 80%
share in the US
and 65% interna-
onally. The need
to diversify be-
yond the stag-
nant postagemarket has seen
it venture into
the soware
world. This ven-
ture has been far
from smooth as it
connues to try
and carve out a
niche beyond its tradion-
al dominance in the mail-
room.
The company has spent over
$2.5 billion on soware ac-
quisions since 2000 includ-
ing MapInfo (locaon intelli-
gence), Group 1 Soware
(data management and cus-
tomer communicaons) and
most recently Portrait So-
ware (customer analycs).
These are managed by Pitney
Bowes Business Insight(PBBI), which was formed in
2007 from the merger of the
Group 1 Soware and MapIn-
fo businesses. However, the
various acquisions have
created a patchwork product
porolio and a complex set of
oerings. PBBI is now com-
peng with far more com-
petors than it is used to, so
must simplify its messaging
and focus on the core capa-
P I T N E Y B O W E S B U S I N E S S I N S I G H T : T R Y I N G T O P U T
I T S S T A M P O N T H E S O F T W A R E W O R L D
Page 10P R I N T E R P U L S E J U N E 2 0 1 1
PBBI now has arange of products to
enable businesses
to gain real
customer insight,parcularly through
geo-demographic
and psychographic
analysis.
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municaon processes in silos andare probably using some ele-
ments of PBBIs CCM suite
either for document composion,
data quality, producon or ar-
chival. PBBI must now encourage
these customers to move to a
single enterprise CCM plaorm,
and thereby reduce the waste
and ineciency associated with
decentralised communicaons
processes.
But, ulmately, the biggest op-
portunity for PBBI is to pull to-
gether its wide and somewhat
disjointed porolio, and provide
a unied CCM enterprise
plaorm that can idenfy the
hot pockets of customers byboth geography and buying habits.
Such highly targeted capabilies
can lead to far higher conversion
of prospects to customers, so re-
ducing the cost of sale and also
buyer fague caused by over
markeng of dierent approaches
to people who have no interest.
Such an approach avoids the need
to sell to mulple dierent groups
within the organisaon, as it pro-
vides a single approach that canbe used directly by sales and by
markeng, yet provides all the
analyc and reporng capabilies
as needed throughout the rest of
the business.
P I T N E Y B O W E S B U S I N E S S I N S I G H T : T R Y I N G T O P U T I T S
S T A M P O N T H E S O F T W A R E W O R L D
Page 11P R I N T E R P U L S E J U N E 2 0 1 1
PBBI certainly has the technologyand the breadth and scale of prod-
ucts to enable businesses to cre-
ate personalised mulchannel
communicaons but it cannot
ignore that other players are snap-
ping at its heels, parcularly HP
and GMC who both oer end-to-
end CCM plaorms. Along with
the many vendors in the customer
interacon space, PBBI has cer-
tainly got its work cut out in estab-
lishing a strong posion in themarket.
Quocirca will be publishing reports on the following topics in the
second half of 2011:
Quocircas Print Security Compeve Analysis 2011
Quocircas Mobile Prinng Compeve Analysis 2011
Managed print services and SMBs
Beyond MPS: Document process outsourcing
If you require further details or would like to speak to Quocircaregarding parcipang in our mul-client studies please contact:
Mobl: 07786 331924
Quocirca reportscoming soon
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nies. NewFields agshipAssetDB technology al-
ready underpins the
assessment and opmi-
saon capabilies for
the Xerox Partner Print
Services (XPPS)
plaorm. NewFields
pedigree as a print as-
sessment provider is
well recognised across
the industry with mostprinter and copier ven-
dors having used Asset
DB in varying degrees to
support assessment of
print environments and
opmised MPS designs.
Asset DB covers the
complete gamut from
graphical oor-plan
based data collecon to
future state design of an
opmised print environ-
ment. Although Xeroxs
purchase of NewField IT
could be dismissed as a
small acquision, it cer-
tainly has the potenal
to make a signicant
impact of Xeroxs chan-
nel-led MPS revenue.
Xerox is keen to repli-
cate its success in the
enterprise MPS market
across the SMB and
midmarket, which cur-
rently has a relavely
low penetraon of MPS.
However, success in
these channel-led mar-
kets is highly reliant on
resellers resources and
skills to sell and deliverMPS quickly and eec-
vely. The Xerox Print
Partner Services (XPPS)
hosted MPS infrastruc-
ture was developed over
a year ago to provide
channel partners with a
set of tools to manage
every element of an
MPS contract including
sales pursuit, device dis-covery, opmisaon and
service delivery. Quocir-
ca believes that the ac-
quision of Neweld IT
will enhance Xeroxs
credenals to deliver a
comprehensive set of
MPS tools for mulven-
dor resellers far beyond
the basic MPS packages
currently on oer fromits competors.
While the technology
benets of the acquisi-
on for Xerox are clear,
less clear is how New-
Field IT will connue to
operate as a vendor-
neutral provider of so-
ware and services. Itsexisng relaonship as
an assessment provider
for HP and Ricoh, for
instance, must surely be
at risk and even more
so given HPs acquision
of Printelligent.
Meanwhile, NewField IT
intends to connue
providing independent
consultancy services to
Xeroxs acqui-
sion of New-
Field IT, a UK
based print
consultancy
and soware
soluon pro-
vider follows hot on the
heels of HPs acquision
of Printelligent, a US-
based managed printservices (MPS) provider.
With both HP and Xerox
looking to expand the pen-
etraon of MPS to SMBs
and midmarket organisa-
ons, the acquision of
these companies provides
the addional capabilies
that both companies needto ensure higher penetra-
on rates. This market re-
mains a largely untapped
opportunity for channel
partners to capture on-
going service revenue op-
portunies in an increas-
ingly commodised hard-
ware market the acquisi-
ons enable both vendors
to approach SMBs via thechannel with a services-led
model that provides dis-
nct business value to the
customer.
Xerox and NewField IT
Xeroxs acquision of New-
Field IT cements a long-
established relaonship
between the two compa-
T H E B A T T L E F O R C H A N N E L - L E D M P S H E A T S
U P
Page 12P R I N T E R P U L S E J U N E 2 0 1 1
The majority ofSMBs and
midmarketorganisations
currently
purchase printerhardware and
consumables ona transactional
basis
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end-users, abiding by its es-tablished code of conduct
which states that it will remain
objecve and not supply or
promote the products of
those hardware vendors that
license its technology. Vendor-
agnosc assessments are a
crical part of any MPS en-
gagement and NewField IT has
long been oering these as an
independent provider. Howev-er, it remains to be seen how
eecvely it can connue to
preserve its independence
when delivering vendor-
neutral recommendaons for
MPS device opmisaon.
HP and Printelligent
HPs almost simultaneous an-
nouncement to acquire
Printelligent has levelled the
playing eld between the two
vendors. Although XPPS had
recently been the only cloud
MPS plaorm available to
mul-brand resellers enabling
them to manage a mulven-
dor environment, HPs latest
acquision of Printelligent will
now provide HP channel part-
ners a wealth of scalable mul-
vendor MPS capabilies.
With Printelligent, HP has ac-
quired an established MPS
provider which has been oer-
ing MPS since 1993 through a
network of MPS channel part-
ners across the US. Printelli-
gent assets will enhance HPs
assessment and opmisaon
capabilies and its MPS salesand services experse infra-
structure, along with HPs
cloud-based InCommand
plaorm will enable HP to now
deliver a set of dierenated
MPS soluons and services via
the channel. Whilst the acqui-
sion of Printelligent will cer-
tainly bolster HPs channel MPS
capabilies in the US, it may
take some me to provide asimilar set of services to its Eu-
ropean channel, parcularly
given Xeroxs strong MPS pres-
ence in this region.
Market outlook
The majority of SMBs and mid-
market organisaons currently
purchase printer hardware and
consumables on a transaconal
basis which creates a huge op-
portunity for hardware vendors
to encourage customers to
adopt a contractual approach
to buying prinng rather
than printers. Consequently
the market for MPS in the SMB
and midmarket is moving be-
yond the simple single brand,
basic service which essenally
wraps hardware with supplies,
maintenance and support.
Whilst HP and Xerox will con-
nue to oer these basic ser-
vices for businesses that need
it, the real cost saving both
nancial and environmental
comes from a detailed assess-
ment and opmisaton of the
printer environment from
T H E B A T T L E F O R C H A N N E L - L E D M P S H E A T S U P
Page 13P R I N T E R P U L S E J U N E 2 0 1 1
both a hardware and workowperspecve. Channel partners
therefore need simple and ex-
ible tools and an infrastructure
that they can tap into to sell,
deliver and manage MPS on an
on-going basis.
The market to sell MPS to
SMBs and midmarket organisa-
ons is sll wide open and ven-dors must provide their chan-
nel with a simple and eecve
MPS cloud plaorm that can
deliver remote monitoring,
consolidated billing, supplies
and service and reporng
across a mul-vendor environ-
ment. For now SMBs are most
likely to be more recepve to
basic services, whilst the mid-
market organisaons stand tobenet most from more com-
plex and value-based MPS
proposions.
Although Xerox had a head
start in providing an MPS infra-
structure for its channel part-
ners, HP has made a smart ac-
quision which will help it
catch up and strengthen itspresence in this market, parc-
ularly as it can exploit its strong
relaonship with the IT chan-
nel. Now that both vendors
have the infrastructure and
tools to provide their channel
partners, success will ulmate-
ly be linked to how well these
vendors engage and train their
channel to deliver MPS to their
customers.
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P R I N T E R P U L S E J U N E 2 0 1 1 Page 14
Vendor Customer Vercal Length of
Contract(years)
Descripon
HP BIS Industrial
Services
Industrial N/A Raonalisaon of print services across 40 locaons
in order to reduce the support burden on its small IT
team and cut spiraling maintenance and supply
costs.They turned to HP to deploy a Smart Prinng
Services soluon worth 120k.
HP Uhde Gmbh Engineer-
ing
N/A Uhde Gmbh, a subsidiary of ThyssenKrupp AG, one
of the worlds leading engineering companies in the
design and construcon of chemical, rening and
other industrial plants has chosen HP for its new
prinng environment, a contract worth $1M.
HP Total
Deutschland
Energy N/A Total Deutschland, are using HP for an MPS in order
to renew and opmise its print and copier environ-
ment with regards to paper consumpon and costs.
HP Cable & Wire-
less
Telecom-
municao
ns
N/A HP MPS soluon with SafeCom to monitor usage,
improve workow and enhance print security.
Xerox Fritz Schu-
macher, Swit-
zerland
Print N/A Fritz Schumacher AG is expanding its exisng part-
nership with Xerox. Fritz Schumacher is adding A3
colour mulfuncon systems to its porolio, as well
as an enre range of services.
Xerox Leieit Home-
wares
5 years Leieit AG is implemenng Xerox MPS at its head-
quarters in Nassau, cung costs by nearly 30 per
cent.
AT A G L A N C E : M P S C O N T R A C T U P D AT E ( E U R O P E )
Please note that this is not an exhaustive list of MPS wins for the vendors mentioned.