Monday, August 10, 2009

HP Responds to DeathOfTheCopier Questions - Enlightening

DeathOfTheCopier was able to ask some questions of to Tom Codd, Director, Enterprise Marketing, Imaging and Printing Group, HP, regarding clarification of the "guarantee" and the current/future position of HP's MPS offering to the channel.

Here are the questions, with responses.

1. DOTC: The HP MPS Guarantee. It looks like the refund is strictly a credit. Is this true? How is the credit issued?

T. Codd - "Yes, with the Printing Payback Guarantee, HP does guarantee a credit on its services. If customers do not save what is projected, HP will make up the difference and work with the customer to get the cost-savings to the agreed upon level. And, the guaranteed credit is applied towards the customer’s future invoices."

DOTC: Also, I see one of the specifications is a fee based assessment in the beginning and another assessment to evaluate final savings. Is the second assessment fee based as well? In general, what is the process?

T. Codd - "For new, qualified MPS customers, HP completes a detailed, fee-based assessment of a company’s imaging and printing environment. This includes HP working in tandem with the customer to refine the architecture and establish a set of print policies for the enterprise utilizing HP technology, services and solutions.

HP will then calculate an overall printing cost savings based on this specific enterprise-wide solution deployment that will be implemented by HP. After one year of full implementation, HP will conduct a second assessment (at no additional cost to the customer) and if the customer has not achieved the projected savings, HP will take remedial action.

Furthermore, if the goal is not met, HP will apply credit towards future invoices."

2. DOTC: The New HP MPS "organization". I understand these initial announcements are for enterprise accounts - are there any plans to implement additional MPS programs in the dealer channel?

T. Codd - "HP recognizes the tremendous opportunities around MPS for customers and is currently assessing all of HP’s MPS offerings to scale solutions specifically for our channel partners; however, HP can not comment on the specifics of future program or product offerings."

3. DOTC: Speaking of the dealer channel -

What is the current offering from HP for their dealers regarding MPS? Can you give me any insight on future MPS directions, strategies for the channel?

T. Codd - "HP has several options for partners who want to offer MPS to their customers, including:

- HP Office Printing Channel Program (OPCP) – This is a PartnerONE Elite offering designed to enable channel partners to develop and implement their own MPS offering to customers.

- For smaller solution providers interested in offering MPS, HP supports several turnkey MPS programs offered by distributor partners including SYNNEX, Supplies Network and NER.

Again, HP can not comment on the specifics of future program strategies or offerings."

My take...something may finally come down the pike for the channel; remember HP's year end is October.

I think distribution will do most of the heavy lifting translating HP's MPS guidance down through the channel for now.


  1. Although HP has long recognized their aftermarket is being eroded by "copier dealers" VARS, and other sources using compatibles, their ability to slow the erosion has been very limited.

    One of their top restrictions to the success of their MPS program will be their ability to respond to the competition's pricing and servicing structure. As MPS continues to explode, the end users will realize the benefits of having one point of contact for all printing, copying, scanning, etc. - This contact will not be HP. HP needs to acquire a distribution base to properly sell, service and supply their products, using HP parts and supplies. Until they do that MPS will be a huge success for the rest of us.

  2. Tod - I must tread lightly here on this subject.

    I agree with you and am very eager to see if/how HP will drop into the MPS niche, via the channel.

    Right now, distribution seems to be handling most of the development.

    Thanks for commenting, keep coming back.