The Functional Economy- Xerox Managed Print Services

Craig Burchell - Vice-President

Global Government Relations - Europe

The shift of

technology

enabled

services

Servitization

Macro Market Dynamics

There continues to be high demand for Document Technology and Management

1 TrillionPages to be printed

$40 BillionSpent on printing &

technology services

8 MillionPrinters & MFPs will be

purchased

North America and Western European Markets

Small and Medium Size Businesses with 1000 or fewer employeesSource: Internal Market size Analysis

84% of Decision Makers

Prefer To Use One Provider

For Both Print & IT Services

• Partner Led Opportunities

• Connect & manage devices

remotely and on-site

• Proactive Service

management with dynamic

reporting

• Support options part of

integrated IT contract

• MPS leads to new managed

services

• Workflow optimization “as

a service”

Synergies from

Integration of

IT and Print

Servers

Storage

Networking

Cloud

Services

Desktops

Notebooks

Intelligent

Mobile

Devices

Phone

Virtual Office

Physical

Office

Security

Security

REMOTE

SERVICES

Non Xerox

Supplies

Non Xerox

Supplies

On Site

Services

MFP

MFP

Remote Print

Devices

Printer

Printer

MFP

Our Mission:

Help derive

value from

sustainable

managed print

services

Expandto new sources of profitable revenue

ConnectXerox® technology and managed print with

their unique solutions to extend customer

ownership and acquire new customers

SimplifyHow work gets done

1

2

3

Our Mission:

Help derive

value from

sustainable

managed print

services

Expandto new sources of profitable revenue

ConnectXerox® technology and managed print with

their unique solutions to extend customer

ownership and acquire new customers

SimplifyHow work gets done

8 June 9,

2016

Managed Print Services The MPS Market Opportunity

Where Customers Prefer To Buy MPS

of basic print services

revenue in the U.S.

comes from the channel.

63%

Unlock value with new

and existing customers.

MPS for SMEsIDC

Customer Benefits

• Cost savings

• Expense Predictability

• Productivity, reduced IT burden

• Visibility of Print Activity

72%

Photizo Group

Who will win the race?

Partner Benefits• Competitive differentiation

• Customer loyalty and retention

• Recurring revenue

• Low risk way to grow their business

of SMEs have no

MPS Program

Basic and Managed Print Services

Managed Print Services (MPS)Basic Print Services (BPS)

Source : © IDC 2013

• Assessment

• Rightsizing

• Proactive management

• Ongoing optimization

• Change management

• Hardware, supplies and service

• Remote monitoring

• Combined billing and reporting

• Vendors and their partners can build on

the installed base of their own devices

• Additional efficiencies through

management of competitive brands

• End users benefit with fewer vendors

and greater print spend visibility

• Increased loyalty

• For end users, increased cost savings,

meeting sustainability goals

$11B Market in 2011,

Forecast to Grow to

$17B by 2016.

U.S. MPS and

BPS Market

Growth

5.319 5.870 6.444 6.927 7.433 7.946

5.765

6.398

7.037

7.665

8.326

8.964

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

1 2 3 4 5 6

Series2

Series1

8.8% CAGR

Source: Worldwide and U.S. Managed Print Services and Basic Print

Services 2012–2016 Forecast Update and Analysis

(IDC# 238570, December 2012)

Industry Leadership

Xerox positioned as a leader in 2014 Gartner Magic Quadrant

for Managed Print and Content Services

27.8%

14.0%

7.0%

12.4%

9.2%

7.7%

22.0%

Source: IDC, July 2014

What Drives End-Users To Managed Print Services? SME MPS Study by Quocirca

With many SMBs struggling

to contain costs, reducing

consumable and hardware

costs are the top MPS

priorities.

What attracts

customers to

MPS

3,50

3,59

3,63

3,65

3,65

3,65

3,68

3,71

3,72

3,73

3,84

3,89

3,3 3,4 3,5 3,6 3,7 3,8 3,9 4,0

Reduce the environmental…

Seamless implementation

Enhance security (document…

Reduce IT burden

Gain a single point of contact…

Improve business continuity…

Improve document workflow

Simplify admin and…

Gain predictable expenses

Improve tracking of print costs

Reduce costs (hardware)

Reduce costs (consumables)

Quocirca SMB MPS Study - January 2014

73% Say Print is

Indispensable• SMBs remain reliant on printing

to support business activities.

• 35% indicate it is critical to their

business.

• 38% say it is very important.

• This has been consistent over

the past few years, despite

predictions of the demise of print.

35% 38% 20% 7%

Critical to our business - we cannot work without it

Very important for the majority of our activities

Important but not essential to the running of ourbusiness

Compliments our business but is not essential

Color Printing

Increasing,

Costs Too

• SMBs continue to see growth

in color printing.

• Majority of respondents are

seeing a rise in consumable

costs, indicating expenditure

on consumables is growing.

• This equates to increased costs

if left unmanaged.

67% 31% 2%

Color Print Volume

Increasing Stable

71% 27% 2%

Color Print Costs

Increasing Stable

Print Services Strategy And Roadmap Helping Partners and customers manage print costs

Xerox

Channels

Managed

Service

Continuum

“On Ramp to MPS”

CHANNEL VALUE

CLIE

NT

VA

LU

ERemote

Monitoring

Managed

Supplies

Basic Print

Services

Advanced

MPS

On Ramp to MPS with Remote Monitoring and Managed Supplies

Remote Monitoring

• Xerox Print Assist

• Enables remote monitoring & management of network

print devices

• Integrated view of printers within LabTech platform

• Device alerts provide meaningful status

• Integrates w/LabTech ticketing

Managed Supplies Replenishment

• eConcierge

• Cloud-based supplies replenishment

• Free lifetime service coverage

• Capture supplies sales for Xerox, Brother, HP, Lexmark

and Samsung devices

• Xerox provides the technology and infrastructure for the

service

• Xerox CompleteView Pro for assessments

• Xerox ConnectKey Technology create workflows

• Xerox Managed Supplies Services

• Xerox Earth Smart

• Cisco EnergyWise

Xerox® Partner Print Services Capability Roadmap

Strategy Client Value XPPS Capabilities

Automate

& Simplify

Assess &

Optimize

Secure &

Integrate

• Xerox ConnectKey Solutions for Scan, Fax and

Document Management

• Personalized Application Builder for MPS

• Xerox App Studio Cloud Scan and Print

• Xerox Digital Alternatives (coming in 2015)

• Xerox ConnectKey Solutions for Authentication

and Authorization

• McAfee Embedded Security

• Xerox Mobile Print

• Mopria Print Service

Xerox

Channels

Managed

Service

Continuum

Summary

• Xerox engineers the way companies work for greater efficiency.

• Customers prefer one provider for Printing and IT solutions.

• Managed Print Services is an $11Bn category growing 8.8%CAGR.

• Customer attraction to MPS focuses on cost containment, work flow

improvements, predictability, sustainability, simplified admin.

• Xerox is a technology leader in Servitization with 4 ways to partner:

− Xerox Print Assist for remote monitoring

− E-Concierge, Distributor MPS for managed supplies

replenishment

− Xerox Page Connect Services with analysis, reporting tools,

a broad range of devices supported, easy on boarding

− Xerox Partner Print Services for more complex MPS

solutions: Assess and Optimize, Secure and Integrate,

Automate and Simplify

22

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