Market Shift Increasingly Favors Managed Print

A tectonic shift in the way technology products and services are delivered to customers is taking place right now.

The shift is towards managed services, and while the shift is industry-wide, those who sell printing and imaging technology quite possibly have the most to gain from a managed services transition.

In a managed services model, remote monitoring and automated device management takes the place of reactive, break-and-fix service and support. Service, supplies and maintenance are pushed out to customers before something goes wrong, and typically a fixed, monthly subscription fee replaces less predictable, more costly invoices cut only when a device fails.

In 2010, the rate of business model change from traditional break-and-fix IT support to managed services will accelerate faster than any time in the last three years, moving into double digits, according to the Institute for Partner Education & Development (IPED). See chart below. The reason: Managed services lower customer costs, reduce waste and equipment failure, and provide a reliable recurring revenue stream for managed service providers (MSPs).

Unmanaged printing and imaging systems create considerable waste on several fronts which have a negative impact on a business’s bottom line. Bringing printing and imaging networks into a managed print services (MPS) model can eliminate this wastefulness, and one of the best approaches to MPS has been designed by Xerox, which put its well-documented experience in delivering managed print environments into the creation of its PagePack 3.0 offering.

A Smarter Approach to Managed Print

Why is PagePack 3.0 capable of delivering superior MPS profitability while greatly reducing waste and simplifying fleet management? Because Xerox has removed from the managed print equation some very costly variables that can quickly sap a MPS provider’s profits. With PagePack 3.0, gone is the cost of shipping toner to clients, and for that matter gone is toner-based pricing all together. PagePack 3.0 prices per-page, regardless of if it’s color or monochrome printing. No more toner cost paid out of your pocket. No more closets full of un-used “just-in-case” toner cartridges. Servicing a customer print fleet is simplified under PagePack 3.0, and quoting any size job is more accurate than ever.

PagePack 3.0 also enables Xerox MSPs to deliver full-fleet management of third-partner printers that already exist in a customer network. With PagePack FM — one of three PagePack 3.0 offerings — Xerox partners can extend their managed print service to non-Xerox printers, preserving legacy print equipment investments for customers while helping Xerox partners capture page revenue from every customer printer, all under the same MPS contract.

“PagePack FM is a monitoring and management toolset that we give certified partners to remotely access and remotely see what’s going on in fleets, and design solution — services and supplies — around the total fleets of their customers,” said Paul Herman, director of services platforms for North American Resellers at Xerox.

Everything Channel recently met with Paul Herman in Washington, D.C., during one of four “Think Big” Xerox PagePack 3.0 Certification Program Kickoffs. PagePack has been a leading MPS platform in the market for five years, but the arrival of 3.0 and its game-changing full fleet management capability now gives print and imaging professionals — and IT professionals looking to add a managed MPS offering — a powerful new strategy to increase devices under management.

“Full fleet management is the opportunity we are going after, and we are going after it in a big way,” said Bob Melso, vice president of DocuSense, who took part in the Washington, D.C., PagePack 3.0 Certification Program.

Philip Woerner, who traveled from Charlotte, N.C., to attend the three-day event in Washington, D.C., told Everything Channel that Xerox is a powerful partner to have in the market, and that similar to IBM, Xerox has clout with business customers who trust the brand and its reputation for excellence. Woerner, president of Premier Technology Group in Charlotte, said his PagePack 3.0 certification would help him deliver significant improvements to the service he provides his customers.

“Being able to provide full fleet management is a tremendous benefit to our customers,” said Woerner. “Being able to simplify their print processes and how they dispatch service for the print products, (and how they) bundle all the supplies through one vendor while simplifying the billing process.”

The three day kickoff in Washington, D.C., featured speaker Jim Salzer, president of DocuAudit International. Salzer shared with participants in-depth experience that detailed critical managed print business strategies like picking the right salespeople, sales compensation models, profit margin targets and managed print sales strategies. The three day kickoff was followed by a continued, eleven-week online mentoring process for all of the PagePack 3.0 certification participants.

As the industry shift towards managed services continues to take place, managed print services like those delivered through PagePack 3.0 will become increasingly attractive to customers looking to lower cost and ease IT management burdens. A 2009 Techaisle survey showed managed IT support services coming in at No. 2 on the list of IT projects to be restarted when IT budgets return. Positioning your business to take advantage of the managed print opportunity today will have you ready to onboard the next advancing wave of MPS customers.

Interested in taking advantage of the PagePack 3.0 opportunity from Xerox? Enroll as a Xerox partner right now: