By Melissa Donovan
Part 1 of 2
Managed print services (MPS) are transforming the enterprise. The October print issue of Digital Publishing Solutions looked at how dealers are managing the transition to MPS and its affect on their business. Here, we focus on MPS’ growth, is it living up to expectations and more importantly where is it headed? Enterprises help shape this path. Their criteria for an efficient management strategy address all components of the information lifecycle.
Based on early predictions, MPS adoption is on track to continue its predicted growth. According to an IDC forecast, the MPS and basic print services market is projected to grow from $26.2 billion in 2011 to $47 billion by 2016. For example, according to the company, Lexmark has enjoyed double digit growth in MPS and continues to see adoption with new customers as well as 2013 renewal of existing customers at 100 percent.
“Based on customer adoption of MPS, I believe that the industry is on par with early predictions with respect to the percentage of customer adoption. The adoption rate has been consistent with new technologies as we have seen enterprise customers begin adopting MPS strategies first, followed by mid-market companies, and finally small business,” explains Jon Hafey, director, strategic MPS business development, Toshiba America Business Solutions, Inc.
The future of MPS will focus on more than hardware. Jackie S. Paralis, senior manager, BTA/MPS marketing, OKI Data Americas, Inc., says as a new generation of employees enter the workforce, MPS will rapidly transition to and then beyond managed document services (MDS).
“Due to the rapidly evolving work environment from continued economic pressures, growth in the workforce of those part of generation X or millennials and businesses relying more heavily on technology as enablers to corporate success, it appears there will be an accelerated transition from MPS and MDS to managed data services in general,” she continues.
Data and how that information is managed plays a large role in the future of MPS. “The next stage is to analyze how and why documents are printed and use that intelligence to change the way information is accessed. Whether it’s improving the patient admission process in healthcare, expediting the process of opening a new bank account, or increasing student enrollment in education—harnessing this influx of information drives real business improvement both internally and externally,” shares Mike Feldman, president, large enterprise operations, Xerox Corporation.
Ash Kamiyama, solutions program manager, Konica Minolta Business Solutions, U.S.A., Inc., sees MPS expanding into the mobile workforce—cloud and mobile computing, bring your own device, big data, industry leading security standards, enterprise content management, infrastructure management, less print, and environmental sustainability.
“The expected long-term growth for MPS will revolve around the integration of software and services that drive meaningful efficiencies in the access, storage, security, and dissemination of information in both electronic and hardcopy format,” adds Kamiyama.
In a Hewlett-Packard (HP) survey of CIOs last year, the HP CIO Mobile Print Survey, 95 percent of IT professionals agreed that “mobile printing is key to efficiency in our business in the near future.” “The power and complexity of IT at all levels is causing companies in the growing markets of mid-sized business and developing countries to seek out partnerships that can help them understand and optimize their technology,” shares Todd Gregory, director of marketing, managed services, HP.
Technology and business needs are advancing. The enterprise must adapt, while simultaneously being forthcoming about what it requires from a print management output strategy.
Traditionally, enterprises implementing MPS look for visibility and control, explains Kyle Farmer, VP/GM, managed print services, Lexmark. This is because they do not have a good idea of how many printers they may have, how much printing they are doing, or how much they are spending on it.
“After the initial phase of MPS is implemented, enterprises will next look to automation and optimization. This is the time to look at all business processes to increase efficiency and find ways to print less,” continues Farmer.
Expectations of cost reduction and device consolidation are shifting, according to Kamiyama. This is due to the complexity of security requirements and the speed of data access by customers, which enables enterprises to think beyond cost and into services that deliver improved efficiencies via automated workflow.
“Data encryption and security both on the device and even in transit to the device are now common requirements as well as data eradication, asset end-of-life certificates, and having assets removed during fleet optimization,” agrees Hafey.
Hafey also points to reducing environmental impact, as enterprise customers are focused on leveraging more efficient products, optimizing and phasing out older devices with more eco-friendly models, reducing paper usage/consumption, and leveraging recycling programs for both hardware and toner products.
The Future of MPS
As the enterprise becomes savvy on what MPS can do, it is only natural that it demands more. Valerie Belli, VP, business services division, Canon Solutions America, shares that as customers mature they understand and want management from end to end of their organization—including all data, documents, and hardware—essentially managed output.
The next part in the series looks at the various MPS offerings from vendors in the marketplace. dps
Nov2014, DPS Magazine