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European Channel MPS Priorities

European Channel MPS Priorities

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Published by: quocirca on Mar 25, 2014
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 © Quocirca 2014 - 1 - Louella Fernandes Quocirca Ltd Tel : +44 7786 331924 Email: Louella.Fernandes@Quocirca.com  Clive Longbottom Quocirca Ltd Tel: +44 118 948 3360 Email: Clive.Longbottom@Quocirca.com 
European Channel MPS Priorities
 
The critical role of the channel in driving MPS adoption
Report Excerpt March 2014
Managed print services (MPS) represent an attractive opportunity for channel partners to move towards a recurring revenue business model. This marks a shift away from a traditional reliance on transactional hardware sales to a more predictable contractual approach. SMBs (small and medium businesses) are becoming increasingly aware of the benefits of managed services, as they embrace trends such as cloud computing and mobility. As SMBs look for guidance, the channel will play a critical role in driving the transition to MPS. This paper examines MPS adoption amongst resellers in Europe, based on original Quocirca research, and discusses the challenges faced as they embark on their MPS journey.
 
 
European Channel MPS Priorities
© Quocirca 2014 - 2 -
SMB interest in MPS is growing
 
Many SMBs are still reliant on printing with 40% indicating colour print volumes have increased which is in turn seeing a rise in consumables expenditure.
Quocirca’s SMB
study revealed that around 40% of SMBs are planning to use an MPS in the next 12 months in order to control costs.
MPS momentum in the channel is growing
 
Overall, 22% of channel partners indicated that they have evolved to a full MPS business, with a further 36% at the early stages of their MPS journey. UK and German resellers are most advanced, in contrast to the French and Spanish channels which are also seeing lower customer interest in MPS.
The channel is critical in driving MPS adoption
As SMBs navigate the ever-increasing range of MPS offerings, they will look to channel partners for guidance. Channel partners should take a proactive approach in educating SMBs and providing clarity on the benefits that MPS offers. For SMBs that are already resource and cost constrained, MPS enables better control of print costs, predictable expenses and reduced IT burden through capabilities such as automated supplies management.
Mature MPS partners are achieving their goals
 
Whilst the channel recognises the value of MPS, many are still looking to improve their capabilities to achieve their key goals of developing recurring revenue streams and improving profit margins. Certainly, those further along the MPS journey are already reaping the benefits, showing the greatest success in terms of achieving these goals.
 
The channel is looking to expand solutions capabilities
More SMBs are using and planning to use software solutions to improve their productivity. In response to growing SMB interest in mobile printing and digitisation of document workflows, almost 40% of channel partners are looking to expand their solutions portfolio.
 
Partners are looking for more financial support from partners
 
Most partners, regardless of where they are on the MPS path, will have cash flow concerns and a fear of lost revenue as they move to a recurring revenue model. Current MPS programmes are failing to deliver around financial incentives and support. If not rectified, this will be a major hurdle to MPS adoption in the channel.
Conclusions
To fully capitalise on the MPS market potential for SMBs, channel partners must shift focus to a services led approach by fully embracing the opportunities for developing long-term customer relationships. SMBs want many things
 –
 lower costs, improved service and reduced IT burden. By developing a more service-centric strategy through MPS, channel partners can deliver all of this and more.
Executive Summary 
European Channel MPS Priorities
 
Amidst printer hardware commoditisation and pressure on margins, more channel partners are recognising the value of shifting from a transactional to contractual model. Although a shift to MPS is not without its challenges, those that have made the commitment to MPS are enjoying success
 –
 in both on-going revenue opportunities and longer-term customer relationships.
 
European Channel MPS Priorities
© Quocirca 2014 - 3 -
Full Report Table of Contents
The following table of contents is taken from the full report which is available to purchase from Quocirca. Please contact louella.fernandes@quocirca.com for further details.
Methodology and Definitions ................................................................................................................................... 4
 
Introduction ............................................................................................................................................................. 5
 
The need for MPS ..................................................................................................................................................... 5
 
Channel adoption of MPS .................................................................................................................................
………
7
 
MPS drivers and priorities ........................................................................................................................................ 9
 
Obstacles to MPS transition ................................................................................................................................... 12
 
Adapting for MPS ................................................................................................................................................... 13
 
Conclusion .............................................................................................................................................................. 15
 
Appendix
 – 
 Survey Demographics .......................................................................................................................... 16
 
About Quocirca ...................................................................................................................................................... 20
 

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