Managed print programme widens HP opportunity
HP has expanded its channel MPS offerings, writes Louella Fernandes
Although it has many channel partners, HP could have had more success in driving managed print solution (MPS) revenue through its diverse and expansive channel.
However, since buying US MPS provider Printelligent in May 2011, HP has been working to transform its channel MPS offerings, and has invested in its sales, service and marketing support for partners that want help building the infrastructure and competencies to support MPS deals.
HP's new Managed Print Specialist Resell Programme aims to provide a multivendor MPS cloud platform for channel partners with a range of scalable multi-vendor MPS capabilities.
These include customer engagement, training, tools and co-marketing resources; assessment, diagnostics and analytics; pricing and margin guidance, service optimisation, and document management offerings.
HP's MPS Resell Programme is based on HP's Bundled Page, which includes installation, toner, parts and labour under an all-inclusive cost-per-page price. Partners can use HP's Express Decision Portal, a cloud based application to manage the contract, proposal, pricing and assessment
HP is responsible for the supplies and service fulfilment whilst the partner owns customer contract and billing. The reseller margin is based on its mark-up of the bundled page price and other value-adds, such as software or service, provided to the customer.
HP is also pushing software as part of its channel MPS offering, giving resellers more opportunity to differentiate and add value to MPS contracts. HP has a broad HP and third-party partner portfolio that enables it to address a range of document needs - including document capture, security/access control, document management and mobile printing.
It intends to offer industry-specific apps as well.
Expanding from what it has done in the US this summer, some of HP's new MPS offerings will be available across Europe, with expanded services offered to the UK, France, Germany and Benelux.
The first roll-out will feature a new service delivery model, including HP branded support, providing differentiated delivery of services. Over time, new programmes including Bundled Page and the infrastructure tools (EDP) will roll out across EMEA - HP intends to run this programme around the world.
HP's latest MPS will in my view certainly help it progress in a competitive market. HP now has a more flexible approach, providing channel partners with a way of entering the MPS market with minimal investment through HP's new cloud platform.
Its new programme will help HP get a better stake in the channel MPS ground - capturing not only HP page volumes but third-party device pages, vital for resellers with customers operating mixed fleet environments, and broadening its footprint in value-added solutions.
Cost reduction is important for most businesses; MPS can help organisations of all sizes get visibility into print costs and help VARs develop long term, profitable customer relationships.
With more manufacturers simplifying and expanding their channel propositions, MPS is becoming more accessible for resellers.
Ultimately it comes down to resellers valuing the MPS opportunity. HP, like other vendors in the market, will need to continue to educate their channel on the benefits of moving from a transactional (and therefore less profitable and less sticky)arrangement to a contractual (longer-term revenue and annuity) sale.
The barriers to entry for MPS, such as cost and complexity, which may have discouraged resellers in the past, are no longer daunting. There is no better time for resellers to add competitive value to their services with MPS.
MPS promises to usher in the Holy Grail of recurring revenue and customer loyalty for resellers operating in a highly commoditised transactional hardware market. It can also help cash-strapped customers turn capex spend into more predictable opex, and boost end user productivity.
Via channel activity, MPS is moving beyond larger enterprises, and is now open to SMBs that are also looking to reduce costs, improve productivity, enhance security and reduce their environmental impact, by consolidating and optimising their printer fleets.
Consequently, many MPS vendors are expanding and refining their offerings. Channel MPS offerings range from basic device-centric offerings, which are inclusive hardware, supplies, and service contracts, to broader MPS contracts which include assessments, optimisation, proactive support, management reporting and software or workflow improvements, increasingly with an industry specific focus.
However, some printer and copier vendors find that building a flexbile, easy to use, scalable MPS platform that can address the needs of a diverse channel serving a range of business and industry needs is a real challenge.
While copier resellers have the experience of selling contracts (usually to procurement) based on pages printed, or ‘clicks', some channel partners may not be used to selling these types of often multi-year contracts. They may lack the expertise and infrastructure to do so - especially when services/solutions go beyond the click.
Channel MPS offerings therefore need to be flexible and scalable with infrastructure and support for those resellers that do not have the resources or expertise.
Louella Fernandes is a principal analyst at Quocirca