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Thursday, April 9, 2009

Konica Minolta Imaging the end of the Danka Legacy

Pirate Mike has some good information regarding a pretty healthy lay-off over at Konica.

It goes along with another blood-letting I heard about at HP last week or so.

Also, I am hearing more about manufacturers cutting back in advertising thus effecting some of the industry's print publications - like all other print.

And a quick look at some local layoff announcements, Toshiba will be telling 120 to "hit the bricks..." May 11.
The times...



Selling Managed Print Services 101

2009

MPS is all I talk about...ok, not ALL. I do talk about Half-Life, Land Rovers and Paintball, but enough about me, let's talk about me...

I have been performing MPS assessments pretty heavily over the past few weeks and I find that although we have a great deal of tools, I am still making things up as I go along.

After reading Ken’s post I knew I had to complete my current article. Ken’s post resonated with me regarding the Tools of MPS -

Current MPS tools consist of spreadsheets, interview forms, data collection sheets, automated data collection devices/software, supplies cost matrixes, etc. 

All geared around collecting the Technical data, i.e. volumes, lease end dates, lease payments, overages, 11x17, first copy out speed, duplex...blah blah blah...this data is mundane and acquiring it is fatiguing, but necessary.

The data is one dimensional and any “monkey” can collect it.

Unfortunately to some providers and many customers this is the extent of the information used in the analysis. Even more disappointing, the assessment to some, IS the proposal.

The Second Most Important MPS Tool: The Interview -

When interviewing, many issues are exposed, some that may not at first seem to be MPS related.
The idea here is simple - the End User interview, the Director interview, and the C-Level interview are all treasure laden conversations. 

Corporate directives, cultural issues, political hurdles, and decision making processes all become apparent as progression is made through the organization.

As an example, I am currently working 3 separate assessments for 3 clients - one is what I call a "Mini-Assessment"; which means we are only looking at 25 copiers out of a fleet of 220.

The idea is to analyze these units for fiscal '08, get the refresh approved, and continue the study into year's end for fiscal '09 upgrades. The goal of this study is to form a Standard Requirements List for all future hardware/copier acquisitions.

The overall organizational goals are:

  1. Reduce operational costs by 5% without “Reductions In Field”
  2. Increase employee job satisfaction
  3. Improve Customer Service
Covering All the Bases – Strategic Approach
When interviewing the questions asked important but the people you ask are much more important. This is my personal application of a strategic approach. I see four types of interviewee’s:


Your Coach
The Technicals
The End User
Project’s Economic Influence

Your Coach
This person is convinced that MPS is the way to go. And he wants to see the project (and you) succeed.
The Technicals
These folks hold “go/no go” over the final recommendations. Their perspective is on the functional issues of the program. They are focused on issues like network compatibility, end-user support functions, invoicing and billing procedures, and maybe all the way down to duplex capabilities of the hardware.
The End User
The End User must be satisfied. When interviewing and speaking with the End User you must have a clear idea of what direction the organization wants to move. For instance, if one of the basic goals is to reduce all the locally connected, desktop inkjet printers, check with IT to insure how they want to approach the subject.


  • The End User has a wealth of “everyday issues” that cause work flow bottlenecks. Their visibility into the organization is restricted but at the local level the information obtained can be very illuminating.



    Economic Influencer(s)
    This entity releases the funds necessary to move forward with the project. Interested in cost reduction and R.O.I. and is probably already spending a great deal of money.
    These interviews are most likely the C-Level players. I do not recommend asking the CEO if “duplexing is important…”
    Additionally, if while covering the Economic Influencer, it is revealed that MPS does not hold a high degree of attention, you may NOT want to proceed.
    (See Strategic Selling for more on the above influencers)

    Any successful project includes covering ALL these bases with relevant (from their perspective) questions.

    Imagine – if you were to contact ALL the above types of users - your picture of the organization’s output fleet would be detailed to the nth degree. And hopefully, this data would allow to make a solid, agreeable recommendation proven to positively impact the organizations overall goals.

    Want to know more? Check out Ken's articles:
    -------------------

    Managed Print Services: the Theory, the Tools, and the Targets (Part 1 of 3)

    Managed Print Services: the Theory, the Tools, and the Targets (Part 2 of 3)


    Managed Print Services: the Theory, the Tools, and the Targets (Part 3 of 3)



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    Tuesday, April 7, 2009

    Xerox To Manage Procter & Gamble’s Global Print Operations - MIF or NN?

    According to a report over at ZDNet, posted by Larry Dignan, Xerox landed a five year deal to manage P&G's print fleet.

    Reprint of the article:

    Xerox said Tuesday that it will manage Procter & Gamble’s global print operations with the aim to cut costs by 20 percent to 25 percent.

    Managed print services are becoming popular as companies look for ways to squeeze costs. All of those stray printers residing in offices add up to a big cost. In the managed print service market, HP and Xerox are duking it out as the largest players.

    In a statement, Xerox said it won a five year deal to manage P&G’s “print shops, offices and home-based work settings.” Terms of the deal were not disclosed. Xerox said it is aiming to cut print power usage by 30 percent and paper consumption by 20 percent to 30 percent.

    As part of the deal, Xerox will offer training to P&G employees and tips on reducing printing costs as well as a portal for procurement and support.

    Overall, print managed services is an interesting market that I’ll be learning as a user. HP is planning to provide print services to CBS, owner of ZDNet. I don’t have any local printers hiding under my desk so I don’t anticipate any problems.


    Are You Considering Managed Print Services ? - What You Should Know and What your Service Provider Should Know


    April 2009

    Managed Print Services is still being defined - or is it?

    I firmly believe in "the best advice is the advice you ask for...", so please don't give me any advice - unless I ask.

    I extend the courtesy to you if you're not asking for advice and don't want to know my opinion, skip this article.

    But if you are a prospective Managed Print Services client, and you're just a bit curious as to how to go about choosing a provider, read on.

    Introducing, Greg's Top 10 Must-Know's before engaging in an MPS assessment.

    Imagine, you're sitting across the table from a Managed Print Services representative. He or she seems to know a great deal about printing and output and supplies.

    After he gives his 5-minute canned intro, pull out the yellow pad with these questions written down, hopefully, you have left plenty of room for his responses.

    Let's begin:

    1. How do you(the client) define MPS? Have your prospective provider define MPS.

    2. What is his Process? Leave it at that, let him further define your question. You want to see the detail of his process if he has one.

    3. Tell me about your assessment. Get the gist of the assessment, the mechanics. You are trying to see if the proposal is the assessment - is that all he's got?

    4. Clearly define the goals of your MPS engagement and have him respond to them. You should think before you meet with the provider. You do not need concrete goals, just a direction.

    5. What goals does your prospective MPS provider have? Is his plan to replace all your existing equipment or supply source(s) with his?

    6. How important is the assessment? Again, is the assessment the only tool in the shed?

    7. How many units have the prospective MPS provider assessed in the last 6 months? This is simple and the numbers don't matter, it's how he answers that matters. Does he make excuses or wild claims?

    8. How many units does the MPS provider manage? How? Same as above.

    9. What percentage of savings has the prospective MPS provider achieved with clients and from what areas of cost? This is a great one, don't let him get away with quoting Gartner or All or InfoTrend or even Photizo, make him get specific. Again, the numbers don't matter as much as how he responds.

    10. What was the Core business of your provider before MPS? The best question. This will tell you where he is going with your account and exactly how much infrastructure he has to support your fleet.


    ----

    Some generalities and points to observe -

    • Does he use the word "partner" or "vendor"?
    • Does he say he has the cheapest program around?
    • What does he say he can not do?
    • Where did he learn about MPS?
    • What does he know about IT issues like power consumption and cooling?

    As the captain of the Titanic said, "...this is just tip of the iceberg..." 


    The ten points above can be expanded into even deeper discussions - would you like to learn more?

    Monday, April 6, 2009

    Somehow, This is Just Wrong - How many Trees must Die for Our Amusement?


    But then again, doesn't paper grow on trees?

    280,951 Sticky notes




    InfoTrends,Calculating Your Emissions Factor - It's All Local


    New study from InfoTrends:

    Average energy usage (kWh) * EF (lbs CO2/kWh) = Carbon Output (lbs CO2)

    Huh?

    From the summary:

    "...Office equipment in Delaware creates 400 times as much carbon output as it does in Vermont..."

    "Carbon dioxide emission factors (EFs) provide a localized translation from energy usage, often in kilowatt-hours (kWh), to equivalent pounds of carbon output (lbs CO2).For energy-consuming office equipment devices, the proper EF represents the indirect public electricity EF..."



    Interesting...



    Sunday, April 5, 2009

    Xerox Page Pak Analysis and Reflections: Let's Go To Church


    The Big X has it sights on the MPS market(duh), and not just through the Xerox lens.

    Toner Pack, an extension of PagePack, is a program allowing dealers to supply their customers with Xerox branded, HP compatible toner.

    But the primary thrust of the program is making MPS much easier on a select number of Xerox MFPs.

    With Page Pack, meter reads, Service Requests/Maint. Kits and Toner orders go directly to Xerox. Xerox fulfills toner orders, submits Service Requests over to the correct Xerox Partner and invoices the partner monthly - partner bills the customer directly.

    The Xerox partner's client never speak directly to Xerox.

    I am not as much an HP advocate as a I am proponent for what works for clients and what works VARs. If I see something I like and think will fit into business, I will mention it.

    Xerox PagePack works.

    Basically, those of us in the Managed Print Services niche, know that one of the most difficult items to calculate is a true per image, dealer cost. This being the variable that exposes a fledgling practice to possible huge losses in a MPS agreement.

    For instance, if we calculate our cost to be 0.004/image (example, not true) - cost meaning toner, maintenance kits, and labor - using this cost and selling at 0.012/image over the life of say, a 36 month MPS Engagement - I should make money on this account unless: toner prices increase, supplies increase, labor rates change or machines start to "blow up" after 12 months.(unlikely)

    In practice, this risk is spread out over the entire fleet - that is if you have a fleet(MIF).

    So, what Xerox did is what the copier makes have done, Xerox told the dealers what their cost is when running with the PagePack program.

    This sounds simple, and it is - which is the point.

    As a selling professional, or owner I just want to know what the cost is - tell me what my lowest cost point is and let me price it to win. Simple.

    I can not over stress this point - even HP VAR's have access to SPS costs - but the cost is wrong. Xerox made it easier to sell Page Pack, by providing a easy to understand all inclusive price structure.

    I won't go into all other reasons, if your interested, you can call Xerox.

    I will say this, Xerox is making it very easy to become a PagePack Partner.

    And I am sure there are other manufactures either providing this or about to provide a price matrix for their dealers.

    One point I want to make - the reason this program makes sense and is simple to understand is because Xerox asked their dealers what they would want. Just like we ask our prospects what they want and how they define MPS.

    Bold concept.
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    Saturday, April 4, 2009

    Dual Screens - Less Printing, and More Productivity

    2009

    Back in January,
    I picked up a little article through Jim Lyon's blog about how dual displays could reduce printing volume and increase employee productivity. 

     After assessing the print environment of a prospective client, I am considering dual monitors the main staple of future recommendations. According to a survey conducted by John Peddie Research, a 44% increase in productivity can be experienced when adding a second monitor - indeed, not just a second monitor, but large monitors. (22 inches and above) 

    Also, although finding hard data points is difficult, there are many anecdotal incidents of reduced printing - one monitor displays the "print" document, email, .PDF, or any other document typically printed for reference - while the other screen is filled with core applications like Order Entry, A/R, and Microsoft suite. 

    As a matter of fact, when recommending EDM systems, I have made dual monitors part of the standard, solution specifications; this makes the scan audit function much quicker. 

    With falling prices, increased productivity, reduced printing, and end-user happiness - this has got to be the easiest way to win end-user acceptance - replace the local, stand-alone, single-function printer with a dual monitor. 

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    Thursday, April 2, 2009

    HP - Managed Print Service Contract for TeleCommuters

    "Companies are searching for ways to reduce costs, increase efficiency and improve environmental soundness," said David Murphy, senior vice president, LaserJet and Enterprise Solutions, Imaging and Printing Group, HP. "The offerings announced today help customers meet their immediate challenges and provide a foundation for emerging stronger once the economy stabilizes."

    PALO ALTO, Calif., Mar 31, 2009 (BUSINESS WIRE) ----HP (NYSE: HPQ: 32.83, 0, 0%) today announced an expanded portfolio of offerings for enterprise organizations seeking to drive efficiency, cost savings and environmental responsibility into their imaging and printing operations.

    Designed to help enterprise customers optimize and manage their imaging and printing environments and improve document workflows, the new offerings include two high-speed scanners, extensibility platform capabilities, fleet management software, solutions for telecommuters, and five large-format devices.

    "Companies are searching for ways to reduce costs, increase efficiency and improve environmental soundness," said David Murphy, senior vice president, LaserJet and Enterprise Solutions, Imaging and Printing Group, HP. "The offerings announced today help customers meet their immediate challenges and provide a foundation for emerging stronger once the economy stabilizes."

    Optimized infrastructures - for the office and the telecommuter

    IDC estimates that by 2013 the telecommuter workforce will grow to nearly 10 million in the United States.(1) HP is making it easier for enterprise employees to work from home more effectively.

    Through an HP Managed Print Services contract, IT-sponsored telecommuters receive an integrated bundle of technical support, a multifunction printer (MFP: undefined, undefined, undefined%), up to three months of initial supplies and a convenient portal to replenish supplies over the life of the contract.

    The solution provides IT managers with a consistent, cost-effective implementation of a home office printing environment. The telecommuter bundles include the recently announced HP Officejet Pro 8500 AiO Series as well as the HP LaserJet CM1312nfi MFP and HP LaserJet M1522n MFP. These highly reliable and productive devices offer low cost of ownership, low energy consumption and compact, space-saving sizes.

    Optimize information capture with new scanners and software

    HP has broadened its portfolio of dedicated enterprise scanners to meet the needs of document-intensive environments. New scanners include:

    -- The HP Scanjet Enterprise 7000n Document Capture Workstation - featuring the HP Easy Select control panel - is an easy-to-use, shared, A4 sheet-fed document capture solution with fast, reliable paper handling and superb network manageability for large workgroups and enterprise customers. Designed to improve and simplify document workflows, the scanner attaches to the network through a direct Ethernet connection without a PC. With HP Precision Feed Technology,(2) users can quickly and securely capture and integrate a variety of sensitive hard-copy documents, such as loan applications, invoices and other records, into electronic workflows. Additionally, this ENERGY STAR(R: 29.21, 0, 0%) version 1.1 qualified product helps customers reduce energy costs by using HP Web Jetadmin to preset sleep and wake modes.

    -- The HP Scanjet Enterprise 9000 Sheet-feed Scanner helps streamline document workflows. Working at speeds up to 60 pages per minute (ppm) and 120 images per minute (ipm), the scanner digitally automates business processes - all at a touch of a button. In addition, the PC-connected scanner ensures secure archival of hard-copy documents with HP Precision Feed Technology.(2) The scanner is ENERGY STAR qualified, compliant with the European Union's RoHS (Restriction of Hazardous Substances) directive, mercury-free and can be managed by HP Web Jetadmin to preset sleep and wake modes to help reduce energy consumption.

    HP Scanjet document scanners support a broad range of centralized and distributed document capture applications and address industry-specific needs through HP Solutions Business Partner Program for Imaging and Printing.

    Optimize imaging and printing infrastructure with new large-format printing choices

    HP's expanded large-format printer portfolio includes a range of new workgroup and multifunction printers and software solutions to improve connectivity, security and fleet management for office users, IT managers and production operators in midsize and enterprise businesses.

    New devices include the HP Designjet T1120 SD-MFP, HP Designjet T1120 HD-MFP, HP Designjet 4520 HD-MFP and 4520 Scanner, HP Designjet T1120 Printer series and HP Designjet 4020/4520 Printer series. These offerings can save enterprises up to 15 to 30 percent off total large-format printing costs and provide up to 10 times faster response from click-to-print and improved overall print quality with crisper lines and smoother renders.(3)

    HP Web Jetadmin seamlessly integrates the expanded HP Designjet portfolio within existing networks and allows large-format printing devices to be remotely managed as part of a diverse printing fleet. The new large-format printers, MFPs and software are integrated into the HP Managed Print Services offerings, enabling customers to reduce printing infrastructure costs, increase uptime and achieve predictable, consistent service delivery across multiple locations.

    Secure fleet management of imaging and printing environments

    HP's new management solutions and extensibility platform capabilities enable businesses to reliably, efficiently and cost-effectively manage high-volume business document processes. The offerings include:

    -- HP Web Jetadmin Enterprise Edition enables customers to efficiently and affordably manage HP and non-HP enterprise fleets, compatible HP and partner software and hardware, and customer-specific applications that lead to increased IT productivity and reduced costs. Web Jetadmin EE, a fee-based offering, offers industry-leading technical support, maintenance and services required to maintain enterprise device management environments. Available with the new platform are:

    -- HP Business Intelligence Module offers business intelligence reporting for imaging and printing device management.

    -- HP IT Operations Module improves IT operations with scalable performance.

    -- HP Advanced non-HP Device Support Module manages non-HP print and multifunction devices.

    -- HP Application Integration Module provides web services interfaces to HP Web Jetadmin, allowing IT applications to programmatically retrieve device lists, device status information and fleet notification.

    -- HP Open Extensibility Platform (OXP: undefined, undefined, undefined%) and solution developer kits (SDKs) dramatically simplify the development and deployment of custom imaging and print solutions across HP's fleet of multifunction products. An industry first, the HP Solution Installer reduces the time and cost of deploying embedded solutions on a fleet of imaging and printing devices - in some cases from days to hours. In addition, OXP adds new management interfaces (OXP-Management) such that IT managers, system integrators and software solution providers can use web services to interact with HP Web Jetadmin to retrieve device information and status alerts.

    -- HP Web Jetadmin 10.2 helps administrators optimize device utilization, control color costs, set default PIN authentication, secure devices and streamline supplies management for HP and non-HP network peripherals. New features of HP Web Jetadmin 10.2 include enhanced remote management capabilities, improved device discovery and configuration and advanced supplies management that reduces maintenance time and overall device deployment costs. In addition, users can remotely schedule sleep and wake-up modes to conserve power and reduce energy consumption.

    -- HP Universal Print Driver 5.0, the award-winning,(5) feature-rich driver, now includes HP EasyColor, which optimizes color printing and improves print performance for image-intensive documents. In addition, users can set printing devices to automatic two-sided printing to reduce paper waste. Features in HP Web Jetadmin and Universal Print Driver software can set an organization's printers to duplex in a few simple keystrokes, saving up to 25 percent in paper costs.

    Transform document workflows with information management solutions

    HP provides a comprehensive suite of offerings to help businesses capture, create, secure, manage, retrieve and deliver documents. Using HP scanning and multifunction devices, enterprise customers can capture and deliver documents digitally - speeding up document-based workflows, eliminating the need for faxing and reducing the amount of paper the organization uses. Expanded solutions include:

    -- HP Output Server Solution offers new capabilities, including HP Smart Office Delivery, which delivers documents to all destination channels including printing, faxing and publishing to web and file servers, and HP Inbound Fax, which streamlines and automates the document process to improve inbound fax delivery efficiency. HP Output Server streamlines business processes and workflows by delivering a unified infrastructure that allows enterprises to centrally manage, transform and process business-critical information from any source to any destination - in a paper or digital format.

    -- HP Delivery Notification Solution for Manufacturing, powered by HP LaserJet MFPs, dramatically improves information shipping, tracking, billing and auditing processes for the manufacturing industry. Using partner software, this solution automates proof-of-goods delivery by scanning and capturing signed paper invoices and routing them through accounts receivable and customer service centers, enabling them to quickly receive status. This solution reduces inefficiencies and costs and improves customer satisfaction for manufacturers.

    Document workflow demonstrations on solutions including TRIM, HP Exstream, HP Output Server, HP OXP, HP Web Jetadmin, HP Scanjets, HP Designjets, HP MFPs with Edgeline Technology, and HP LaserJet MFPs, as well as solutions from EDS, an HP company, will be presented at the AIIM Exposition and Conference in HP booth 1400.

    More information on HP's expanded imaging and printing portfolio is available in an online press kit at http://www.hp.com/go/AIIM2009.

    HP and the environment

    For decades, HP has been an environmental leader, driving company stewardship through its HP Eco Solutions program, which spans product design, reuse and recycling as well as energy and resource efficiency. HP influences industry action by setting high environmental standards in its operations and supply chain by providing practical solutions to make it easier for customers to reduce their climate impact. More information is available at www.hp.com/ecosolutions.

    About HP

    HP, the world's largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP is available at http://www.hp.com/.

    Note to editors: More news from HP, including links to RSS feeds, is available at http://www.hp.com/hpinfo/newsroom/.

    (1) "Telecommuter Update, 2008: Employer and Employee Profiles, Changing Work Dynamics, and Technology Use," Doc. No. 21372, IDC, August 2008.

    (2) HP Precision Feed Technology is a suite of technologies that ensure reliable paper feeding, including multi-phase pick process, advanced separation technology, automatic picking technology, mixed stack handling, and ultrasonic double feed detection.

    (3) Compared to the HP Designjet 800 Printer series, based on four copies of 50 A1 pages using normal print quality on plain paper. Intervention time not included.

    (4) Fee modules can be added individually or bundled in the Web Jetadmin Enterprise Edition Suite.

    (5) The Technological Innovation Award by Industry Analyst Inc. was granted to the HP Universal Print Driver in December 2006. Industry Analyst Inc.'s IATSD test lab reviews dozens of hardware and software solutions each year and identifies a product, service or solution they feel is truly innovative and worthy of recognition. Tests and analyses that led to this recognition were not funded by HP.

    ENERGY STAR is a U.S. registered mark of the United States Environmental Protection Agency.

    This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2009 and HP's other filings with the Securities and Exchange Commission, including but not limited to HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2008. HP assumes no obligation and does not intend to update these forward-looking statements.

    (C: 2.67, n.a., n.a.%) 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.


    SOURCE: HP

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    New York City Dept of ED. - Xerox Contract Starts at $36 million - ends up at more than $67 Million - UPDATED 4/6/09


    Contract overruns are very common at the New York City Department of Education.

    In the most egregious overrun, a contract with Xerox Corporation to lease copy machines to schools ended up costing the taxpayers more than $67 million. It had been estimated at a cost of $1 million.
    In a letter written to the board from City Comptroller and Mayoral Candidate, William Thompson, called the a “troubling pattern of mismanagement” at the department.

    Thompson's claim has been disputed. Representatives say that city records show that the Xerox contract was estimated originally at $31 million, not $1 million, as Thompson reported. Meaning the overrun $36 million, not $66 million.

    See the complete article here.

    -----------

    UPDATE, 4/6/09

    In a written response to the Comptroller, the Chancellor explains:

    "...Xerox Corporation:

    The figure you give for the contract’s original amount, $1 million, is incorrect. The Xerox contract was actually registered for $31 million. We originally registered the contract for $20 million in 2002, and later extended it twice, once by $10 million and a second time by $1 million. It appears that you cite the amount of this last extension as if it were the entire registration amount. The accurate estimate is still less than the amount actually expended, but as we explain below this fact in itself is neither problematic nor atypical in a requirements contract.


    For the record, a review of the original Xerox contract documents shows that the original estimate was reached through a standard process. Procurement for the Xerox and T&G Industries contracts began before the start of mayoral control (the contracts went into effect on August 1, 2002). The Board of Education provided vendors bidding on this RFP (including T&G Industries) with a comprehensive inventory of the Department’s copy machines; the number and types of machines guided the unit pricing proposed by the vendors, ultimately resulting in a contract estimate..."

    Seems this is politically motivated, who woulda thunk.

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    One more way to save during the downturn Quocirca's Straight Talking: Think print


    Another insightful article from Louella Fernandes .

    Looking to cut IT costs? Quocirca's Louella Fernandes says managed print services can bring savings to many organisations.

    The tough economic climate has led businesses to tighten their belts, and as a significant cost centre, IT is often the focus for cost reduction measures. Many organisations have frozen new capital expenditure and are looking to make much better use of their existing assets.

    However, since IT is a critical part of today's business, driving innovation and productivity, any reduction in IT spending needs to be carefully considered. Strategic investments combined with flexible financing and delivery options can help businesses achieve rapid cost reductions in the downturn. As previous downturns have illustrated, such actions can help organisations emerge much stronger and competitive when the recovery comes.

    One area where significant cost reductions can be made is in printing. For many organisations printing costs are uncontrolled due to the fragmented purchasing of devices and consumables across departments and locations.

    There are some simple measures businesses can take to lower print costs. Switching to duplex printing on supported devices, for instance, can make an immediate impact on paper usage.

    Even more saving can be realised by fully leveraging the functionality of a multifunction printer - in particular, document capture and workflow capabilities. When combined with 'follow me' printing - whereby documents are printed only once a user authenticates the job at the device using an authentication code, proximity card or smart card - wasteful printing can be eliminated, increasing efficiencies and reducing the costs associated with excessive paper consumption.

    Meanwhile, these days many businesses are sweating their assets and delaying hardware upgrades. This is a viable approach for printers whose lifetime can go beyond the three- or five-year depreciation cycle, which is often more an accounting issue than a matter of reliability.

    However, replacing outdated inefficient devices with higher performance and energy efficient MFPs should not be ruled out completely, particularly for business critical applications. Indeed by not upgrading outdated devices, the downtime and inefficiency will eventually cost businesses far more than the replacement of older equipment.

    Though many businesses rely on printing, they do not have the tools, expertise or resources to fully understand the total cost of ownership of their printer fleet. This lack of visibility can be a huge drain on costs. One way to mitigate this is to use managed print services (MPS). MPS can offer cost reduction along with improved efficiencies in the short and long term.
    Optimising the print environment can also have a significant impact on costs...

    MPS entails the assessment of current print costs, optimisation of the printer fleet through consolidation of devices and continuous management of the print environment. It can also provide organisations with access to skills current IT employees do not have, especially where staff cuts may be forcing workers to do more work with fewer resources. MPS can benefit large enterprises as well as small and medium businesses.

    Most printer and copier vendors offer some form of MPS, either as a fully outsourced service or as a more modular set of services, which enables a business to retain some control of its print environment if it so wishes.

    MPS can certainly be a wise investment in a recession, where the focus is often on short-term cost reductions.

    These services can provide organisations with visibility into their print costs very quickly through the use of discovery and remote monitoring tools which can provide insight into what is being printed, where and by whom. In the long term, optimising the print environment can also have a significant impact on costs, particularly through device consolidation.

    Businesses may be operating a ratio of one device to five employees or even less - best practices suggest that device consolidation is considered whenever an organisation's user-to-device ratio falls below 10:1 to avoid excessive expenditures associated with equipment redundancy.

    This has implications for IT support, the purchasing and storage of consumables and the use of office space. Transforming the print environment by reducing the number of devices can also reduce energy consumption significantly, providing another cost saving.

    With the increased focus on reducing capital expenditure, MPS also provides an alternative approach to the traditional model of purchasing printing. The current budget pressures mean many businesses have to rethink how IT purchases are financed and delivered - and some are moving from classic upfront capital expenditure to operating expense-based equipment leases. These pay-as-you-go models can make a lot of sense for the print environment.

    MPS can offer predictable monthly payments based on cost-per-page contracts which cover hardware, supplies and pre-emptive service. This is certainly more attractive than the traditional ad-hoc and unplanned purchasing of supplies, and the downtime associated with device failure.

    The print environment may not be the obvious choice to invest in during a downturn but those organisation who don't take steps to measure the cost of the printing are leaving themselves open to further escalating costs.

    A leading user-facing analyst house known for its focus on the big picture, Quocirca is made up of a team of experts in technology and its business implications. The team includes Clive Longbottom, Bob Tarzey, Rob Bamforth, Louella Fernandes, Fran Howarth and Simon Perry. Their series of columns for silicon.com seeks to demystify the latest jargon and business thinking. For a full summary of the consultancy's activities, see www.quocirca.com.

    Wednesday, April 1, 2009

    HP, Xerox, Ricoh and Dell: Something Wicked This Way Comes

    Remote Monitoring Ricoh announced it a few weeks ago... Managed Service Providers are wondering when HP will make it so... Xerox has been writing to open APIs... Dell has been running a pilot program for months... What gives and why should we care?

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    Greg Walters, Incorporated
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