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Thursday, March 16, 2017

Is Seat Based Billing the Next MpS Boondoggle?



boondoggle |ˈbo͞onˌdäɡəl|

...work or activity that is wasteful or pointless but gives the appearance of having value.

In 2007, I traversed the sun drenched thoroughfares of Southern California - from the 'Bu to the Border, Laguna Beach to Victorville.

I was part of a new movement, "Managed Print Services", working for a big VAR, part of HP's flex into the copier niche(sound familiar?) with an MPS program and a new copier-killer, Edgeline.

Like most VARs, we were built on value added services attached to hardware sales. Unlike most, our newly built NOC helped the move to services based revenue streams. In addition to classic T/M contracts, email hosting, backup/disaster/recover, remote management and remediation, and help desk were part and parcel of our value proposition.

At the time, managed print services fit well into our portfolio; the notion was to integrate all services and bill per user, per month.  I didn't consider this a 'good' or 'bad' idea, it was simply the established method.

We folded our per click model into the per user or 'seat' amount and soon ran into challenges -
  • What if we calculated the per seat cost but users printed MORE than we anticipated? 
  • Could we discern between "high-volume" users and provide tiered billing?
  • How do I get EAutomate to bill by user?
There was risk.
“...A good friend of mine(Greg Walters), talked about SBB back in the olden days, and I told him it wasn’t going to work - but when Print Audit and West started bringing in high powered guys like Luke Goldberg, I knew it was going to fly”.
"If dealers don’t jump on this, they should just call their bankruptcy attorney today. "
- Anonymous
Unfortunately, back then, SBB for MPS, found few advocates.  In 2008, industry know-it-alls labeled managed print services a fad; the latest scheme by some to remake the copier industry.  The successful copier dealers could barely spell 'MPS'.

Since then, I've been inside VARs, across the country learning one thing - even if an MpS program is 'out of the box' easy, or well established, most IT providers treat print like 'fly-over' states.  Separate in practice, structure and billing.

Has the time come?  Is per user invoicing the second coming?

Yes and No.


Boon - "Cause your's is the best in the county, isn't it 'mam?"

Billing per user is easier for the client.  No meter reads, or confusing invoices.  When faced with a quote of $9.00/emp/month, prospects find the decision to move forward, easier.

Imagine a business with 150 employees; 75 are knowledge workers.  This account would generate $675.00 each month, no matter how much they print/copy.  (Not sure if that is big or small for you.)

Indeed, as prints decrease, and head count remains constant,  costs fall against steady revenue.

This fits nicely in the true goal of a solid, contemporary managed print services engagement: reducing output.

Boondoggle - "...and you sir, in the yellow shirt, come on up on stage..."

Across industries, the best sales people rarely, if ever, discuss pricing.

Converting cost per image into cost per user and presenting this idea as a 'value-add', reduces(once again) the conversation to price, moving away from business solutions, focusing on cost as a primary motivator.(I know, I know...)

Same race to the bottom, different vehicle.

So what can you do?  More importantly, who do you go to for real world advice?  A sinner.

"Who can lead you off that crooked road?  You need real sinner, people. A sinner of such monumental proportions that all your sins wrapped up in one couldn't possible equal the sins of this King of Sins..."



Listen to A Sinner - "...I have danced with the demon satan..."

How To Implement a Per User Model for MpS

Create SBB in-house

Our industry either builds or subs out services - MpS and Managed IT can be provided by aligning with outsourced programs like Collabrance, Continuum, PrintSolv, and others.  Soon there will be SBB programs sponsored by toner remanufactures.

Is this right for you?  I'm not sure.  I once believed the only way to offer SBB was to rely on distributors.  Only they can spread the perceived risk over large amounts of devices/toner.

But today,  the risk isn't in toner delivery.  Aligning with toner suppliers for SBB my be as counter productive as partnering with transactional copier dealers when designing a print reduction program.  The motivations are diametrically opposed.

So do it in-house.

Work closely with your managed IT services practice. MpS is IT.
Approach through IT, present as a managed program, not "toner and service just like your copiers"(upchuck).  If you're not providing any IT services, stop reading this now and go feed your pet dinosaur.


Sell one more service(IT).  MpS and Trees.
Embed MpS with backup disaster recovery or remote monitoring and management.  Expand your current MpS services to include "remote output monitoring" or something similar, utilizing the full capacity of your data collection agent.  If you don't know what I mean, stop reading this now, and go feed your dinosaur.

Line of business integration? Forget 'bout it.
Of course you want to integrate your even existing CPI billing structure with the new managed IT and SBB programs.  But it isn't easy.  All it takes is a spreadsheet and a separate P/L - your MpS practice has its own P/L, right? Tsk, tsk.

In the end, SBB is a good idea to protect your revenue from the continued reduction in 'clicks'.  But per user billing is a temporary fix - nothing is going to stop the decrease in placements and clicks. 

Not even the Supercharged Grenade Launcher of Love...

Wednesday, March 15, 2017

Three Reasons to Sell ITAM with MpS

IT Asset Management


As our world moves beyond toner and service, managed print services slip into the mundane, boring, and commoditization.    Once there were no providers, today, thousands of practitioners scour the landscape in search of disgruntled MpS clients and new prospects.

MpS drives business as many successful, full-service practices have evolved and thrived.  But the well will run dry, the print will reduce - nobody is copying like it's 1969.

For those who derive a living through MpS, how do we remain relevant, build relationships and keep the revenue flowing on the downside of the curve?

We jump the curve.

We add services, transform our portfolio and stay on the cutting edge of innovation, right?

In this effort, many are looking toward the IT realm. This sounds great but the journey is proving formidable - investing in a NOC or help desk is expensive and retraining existing or hiring new sales talent takes time.

Wouldn't it be nice to find an offering that builds upon your existing tools and processes, requires little sales training, and helps IT departments everywhere?  How about providing service customers naturally recognize as valuable and are willing to pay for, monthly?

I suggest we "Jump the Curve" with IT Asset Management(ITAM).

What is IT Asset Management?

“IT asset management(ITAM) provides an accurate account of technology asset lifecycle costs and risks to maximize the business value of technology strategy, architecture, funding, contractual and sourcing decisions” - Gartner

Sounds complicated, but I believe "If you can sell a copier, you can sell anything.”  I’m not suggesting you become an ITAM expert, complete with certification and 10,000 hours of learning under your belt.  I am proposing you offer services to fulfill one component of a successful ITAM program: inventory mapping.  With the right tool, the process is as simple as a print assessment.

Three reasons to sell IT asset management-

  • Relationship
  • Relevance
  • Revenue
Relationship -

  • In the ’70s, we sold the strength of our “Product”.
  • In the ’90s, we sold our “Product” bundled with “Services".
  • In the 2000s, we sold with a "Customer Centric” spin.
  • Today, coming full circle, we're in " Relationship Centric” selling cycles.
The best “relationships” are built on honesty and exceed two dimensions.  Providing toner and service on a monthly bill is the best two-dimensional and more likely one dimension to your client.

Why not open up to a more enriched affinity?  Knowing that ITAM causes heartburn for IT Directors and understanding how to relieve that pain, raises your conversation and advances your relationship beyond the toner cartridge.

When you provide a listing of IT assets alongside your print devices, your IT contact need only review one source - you - when looking to refresh assets.  Map BOTH print and IT assets when performing an assessment and deepen your relationship.

Relevance -

The current battle for the office is not about capturing more ‘clicks’, it's about remaining relevant. You're not the only party struggling for the spotlight - your customers are scrambling as well.  IT departments across the globe are looking for seats at the big table; they want to be part of the decision process helping guide the company.

The days of ‘pulling cable’ are long past.

How can an IT Director be a visionary, when his staff is out counting desktops and tablets?  Toiling over pivot tables and Crystal reports restricts the ability to innovate and evangelize the strategic benefits of IT.  When providing IT asset inventory services, we free up the most valuable resource; time.  More time to dedicate to strategic, relevant, IT issues.

Revenue -

New revenue streams.  Everybody wants some, I want some too.

Our unscientific studies show that for every output device, on average, there are five to ten IT assets. If you’re writing MpS engagements and performing assessments for accounts with 200 or more devices, you are walking past 2,000 revenue-generating assets.

Revenue with one cost component; no toner, shipping, service, or mileage costs.

One More Thing - Don't be a tool, use a tool.

Originally posted, October 26, 2016, at Atlas.

Wednesday, March 8, 2017

#ManagedPrintServices: "I feel a lot of love in this room..." just not A3&A4


March 8, 2017.

"All Roads Lead to MpS and MpS Leads to All" -  I've been saying it for years.  At first, it was a joke.

I drop phrases like, "You know, copiers were the first devices on the internet of things.(MWAi)"

Or...

"In my world, voice mail is a document..."  In a room full of IT types, the response is silence.  Yes, that is a third eye growing out of the top of my head.

Here we are, March of 2017 and not much has changed since 2007.  Everyone 'does MpS', but few understand the expansive realm.  

Monday, December 26, 2016

Is the Internet the Garden of Eden or God?





For decades, the internet has provided everyone from professors to trivia experts instant access to information.

What once was,

The internet is molded in our likeness...
The internet flows with falsehoods...
The internet is nebulas a formless ghost of the past, present, and future...

In the beginning, there was darkness -

...and then there was light...

Connecting the world's computers offered us access to just about any 'fact' we could imagine - in theory, anyone could connect with the source of research, witness news as it happened, or form an opinion based on available information.


In the days before 'shells', the internet was free-form - we connected at the prompt, bumping around in Mirc rooms, and searching with tools like InfoSeek, AltaVista and WebCrawler. Bulletin boards offered asynchronous, yet informative, relationships.

Then came Prodigy, Compuserve, Delphi, and finally, America On-Line. These communities helped technological neophytes engage in the bold, new world. Overnight, the sparsely populated playground of nerds flooded with teenager angst and desperate housewives: "Cyber-sex" and "troll" hit the lexicon.

It was great.

From oil changes to Russian political history, if you have a question, the answer was out there on the 'net. Raw. Unedited and sometimes, difficult to find. It was a treasure hunt.

Move forward 20 years and there are 60 trillion webpages using an index 95 of petabytes - nearly twice the size of data mankind created, ever.  But what in the world can 60 trillion web pages tell us?

The internet is full of gossip...
The internet is full of dogma...
The internet is filtered...

Generations of adults have grown up with the internet and google. But now the raunchy and raucous cyber-land is settled and gentrified.  Today, proper search engines find what the "collective" wants, not necessarily what we, individually, are searching.  Indeed, even when the "powers that be" utilize "my" unique internet wonderings as my personal baseline, I want what I want right now, not 30 days back.

I am reminded of the time I took a few inner cities (Los Angeles) kids for an off-road trip in the San Bernardino mountains.

Every year, a group of young city-dwellers would venture "up the hill" for an all-volunteer-sponsored trail ride in the forest.  It was our chance to show off the woods and their opportunity to get out of the concrete jungle.

The little girl in my truck was wide-eyed.  It was her first time in the mountains.  Her head on a swivel, she innocently asked, "Where do all those trees come from?"

"What do you mean?" I responded.

"Who planted all those trees!?"

I was stunned.

Every tree, bush, or swath of grass this little girl had ever seen was designed, planned, and planted - her environment was completely man-made.

And that's the point - I fear the internet has an overcrowded and hollow wonderland between what we know, and what we strive to understand.  Seductive in design, the results are not organic.

She lived in somebody else's world.

So it is with the newly connected, brave new world.  The masses do not question the virtual until they have the eyes to see the real.  The internet is Westworld -  fooling us into believing somebody else's vision of reality.

We have willingly removed the distinction between 'virtual reality' and 'reality'. All of our things will be digitally connected.  Someday, we will all be connected through the 'interwebs'.

Is google, God?

The escape, if there is one, resides in the 'old ways'.  The way of the printed, read, and repeated word.  Searching for answers in the real world, along the Path.

Storytelling.

Don't get me wrong, the internet is a wild and entertaining place.

It's a shame we'll need to be connected via technology only to discover we've been connected all along.

Friday, December 23, 2016

"What's the biggest change in Managed Print Services since 2009?"




During the past seven years, I've attended dozens of speaking events, helped hundreds of clients, worked thousands of hours, and generated an incalculable number of words about managed print services.

When Nathan Dube approached me with a few quick questions about "then versus now", Clone Wars, and the best things sales reps can do in 2017, I tripped into the Time Tunnel.  What seems like yesterday is now nostalgic.

In the beginning, few were talking about, let alone selling, MpS.  In the 'good ole days, those of us in, made it up as we went along.

HP(Edgeline) and Xerox(Page Pack) had MpS programs.  So did Synnex and a few other organizations.

Customers were clueless when it came to DCA's, assessments, QBR's and proactive service.  Nobody heard of "Print Policies".(not print rules)

Below is our first podcast.  Thirty minutes of two veterans of the industry shooting the breeze.  I'd like to do more of these in a more relaxed format - with a libation.

I guess the theme for this podcast could be "The Song Remains the Same."

Enjoy.




The number one song in 2009:



Click to email me.

Thursday, December 22, 2016

Merry Christmas, 2016



From Detroit to SoCali to Davidson, NC to Oconomowoc, WI (Yes, it is a real town) it's been a heck of a tour with no sign of letting up.



I started DOTC in 2008 and I've tried to mark each Christmas with pithy prose and cute, snowy pictures.

Wednesday, November 16, 2016

Losers Calling for "Unification"


It's a trap.

Obama and Donald sit down and talk and the news talkers are pushing the 'unity' talking point.

Sure, nice words and smiles looks fine and make us all feel warm and fuzzy. And yes, one should win with honor...and should lose with grace.

Under the guise of grace, the losers are cuddling up to the winner in an effort to further their losing agenda.

Trump won because of his words and actions resonated to a frustrated electorate - frustrated over the eight year old processes of Obama.  It is simple.

Trump must not change or acquiesce to the establishment. This will be difficult for he is now part of the machine we so adamantly challenged.

The Kids in America.

College campuses have always been a bastion for rebellion, a place to challenge beliefs and develop ideals - to stretch personal boundaries.

Unfortunately, nobody teaches the 'yudes', how to be an American or a winner.  Instead, "losing" fair and square, is equated with discrimination and victim-hood.  We've created a generation of whiners.

"I can't lose.  You're biased/racist/phobic!"

So the kids, who have nothing to worry about accept skipping class, head to the streets under the guidance of oh so many community organizers and burn stuff.

Tools. Useless.  Irrelevant.

Get back to your "Primitive Cultures" class.

America is not divided.  We are not tearing ourselves apart.

The biggest lie perpetuated in this campaign is that one candidate promotes dissension while the other pretends to "unify".  Evidence shows the exact opposite. Riots, shootings, protests, pontifications - voicing dissatisfaction with the results of an election - are coming from the side of 'understanding and Love'. ::sarcasm::

Here's the strategy: Create a problem, magnify the problem, force the electorate into a state of desperation and present yourself as the answer to the challenge you've created.

The media folks are stirring the pot, making it look like we are a nation of idiots, elitists and rubes.

Simple.


The United States of America survived the assassination of Kennedy, the twisted world of Nixon, the do nothing Carter Era, a sexual predator, 911, and the "Let's Make America Second" tour. Trump-World has got nowhere to go but up.





Thursday, November 10, 2016

The Establishment is Burning: What the 2016 US Presidential Election says about the imaging industry.


  • CNN was wrong.
  • NBC was wrong.
  • ABC was wrong.
  • CBS was wrong.
  • NPR was wrong.
  • Obama was wrong.
  • Hillary was wrong.
  • Biden was wrong.
  • Hollywood was wrong.
  • Starbucks was wrong.
  • The Huffington Post was wrong.
  • The pollsters were wrong.
  • The insiders were wrong.
  • Twitter was wrong.
  • The Establishment was wrong.
  • The Status-quo is wrong.

Experts pontificated how Trump had no experience in government. They vilified Trump supporters calling them racist, homophobic, morons - ‘deplorables’. Anti-Trump minions repeated over and over how Hillary was empathetic to the cause of women - although she’s chief enabler to her sexual predator husband.

Wednesday, October 5, 2016

HP & Samsung: A Faster Horse?


There is no evidence that Ford uttered the phrase, "“If I had asked people what they wanted, they would have said faster horses.”

Still, the feeling is relevant - "If we had asked OEMs what they wanted, they would have said dozens of more copiers..." Of course, we only ask OEMs, not customers.  Customers, might say things like, 'fewer copiers', and who wants to hear that?

The print volume is down, and printer hardware placements are off, but studies(IDC) reveal growth in contracted hardware somewhere between a 4% and 40% increase.

Could this mean while printers are dying off, copier volume is increasing?  No.  As the MpS trend continues, a portion of the print volume is captured as a 'contractual' type.  It wasn't tracked like this before MpS; same images, different billing scheme.

No. New. Clicks.

From a great webinar, BPO Media

Industry chatter supports the IDC report as dealers report stable and growing MpS/Contractual volume.  Following the logic, HP's do-over makes sense.  They are digging in somebody else backyard.

Who knew?

HP Inc., and her crew, are excited about this turn, it is a new wrinkle in an otherwise boring and waning realm.

Yet,
  • An HP/Samsung adventure is not disruptive - the HP Series II was "disruptive".
  • The Mopier and Hawk were not disruptive - the Internet was "disruptive".
  • Pagewide ink is not disruptive - Gutenberg was "disruptive".
The effects will be the subject of discussion for months, but the industry won't buck, markets won't gallop into 'black', and end-users will not race to print and copy like it was 1999.

What does it all mean?

For the Copier Dealer - "Isn't this horse dead? Kick it again."

This steed has been around the track a few times; the pitch borrowed from Edgeline:

"IT departments trust the HP logo."
"Your cost with HP is less than copiers."
"We're looking for loyal partners."

All true.

Just a few things to remember:
  • HP believes everybody works for them - even clients
  • HP will not be happy with being your 'second' choice - the rules change every October
  • Your clients who purchase HP, are really HP's customers, not yours - it's not your name on the box
If you haven't been approached by mother blue, you are not on their radar.  HP is hitting up the larger dealers for 'partnerships'.  Pinstripe suits, great meeting venues, and bags of cash - what could possibly go wrong?

For VARs - "Rebates"

Print still sucks and you don't want anything to do with hot machines, dirty boxes, and a help desk inundated with paper jam questions.

So HP will take that headache.  In contractual programs supported by HP, all you need do is work with your customers, sell the machines and pass them on to the blue Goddess.

What could possibly go wrong?

Customer - "I watch NASCAR"

The trifecta winner is the customer.  You know clients love to complain about copiers.  They leave sticky notes and write memes about their multifunction device.  Pictures of exploded toner flood the inter-webs.

Cheaper, smaller, simpler devices will rule the day and nobody does A3 better than HP.

At the Finish Line, its HP - "By a Nose"

Not like Man-O-War or Secretariat, the Blue Gorilla may win the day by being the biggest, not the best.  The sheer size of HP allows great losses before the organization fades into darkness.  Also, this isn't the same HP that purchased and arguably destroyed COMPAQ, Palm, and WebOS - the names are different - maybe

For dealers and VARs, if you're into supporting devices that mark paper, I would jump on the HP wagon.  Keep a clear head, and understand that HP's loyalty only goes as far as stockholders' wishes and dividends.

You will never be a true, Partner.  Form an alliance, benefit from the HP logo, sell a few more devices and keep your options open.  It could be a short but profitable ride.

Indeed, when that Last War Horse of a printer is sold, it will be an HP.

Thursday, September 29, 2016

HP, Inc. to Buy The Largest Toner Recycler on the Planet

9/2016

"We will own the third party toner market and then we will destroy the third party toner market."

In what can only be described as one of the boldest moves by an OEM to control its destiny, HP Inc. is positioning to 'disrupt' the aftermarket supplies niche with its $1.1 billion take over of "...the world’s largest collector and recycler of imaging supplies..."

After years of competing with firms that 'recycle' empty cartridges by re-labeling, re-assembling or simply manufacturing exact duplicates of their product, HP Inc., in one intrepid motion, becomes the largest supplier of recycled toner cartridges - not only HP, but a multitude of other manufacture's aftermarket supplies are now under the control of HP, Inc.

The industry is rife with shocked response...

###

Let not your heart be troubled, the above statement is a journey into the absurd, macabre and fiction.

But imagine the consequences of such a move.

The next time you complain about how HP has "screwed its customers" by initiating software that checks toner cartridges for a chip, consider mother blue setting up her own recycling factory south of the border.

On the other side of the coin, when HP exclaims the 'disruption of the A3 industry', take it with a grain of salt.  Sixteen new copiers does not a 'disruption' make; buying her way into the aftermarket niche would cause great turbulence.

Food for thought...


Friday, September 23, 2016

You Should Be Selling ITAM with Copiers, Printers and MpS


Gartner - "IT asset management (ITAM) provides an accurate account of technology asset lifecycle costs and risks to maximize the business value of technology strategy, architecture, funding, contractual and sourcing decisions.”

There is so much turbulence in the industry today, it's tough to figure out what to do.
  1. Margins continue to drop
  2. The OEMs are locked in a War for the remaining 'clicks and you're in the line of fire
  3. Customers are demanding more than "scan once, print many'
We know you're going to survive.  What can you do to thrive?  How about selling asset lifecycle management?

There is a great way to remain relevant in the eyes of your customers and sell more services without the hassle of establishing third-party partnerships, investing in a NOC, or falling into a huge time-suck.
  • No need to retrain your sales staff.
  • No heavy investment in software packages that require an MBA to operate and understand.
  • Keep your existing toolset
There are plenty of tools out here to support an ITIL model, you just need to commit to the philosophy.





Wednesday, September 14, 2016

Samsung & HP: Another Technology Firm Sells Off Print

Kali
9/14/16

Check out the first article about Samsung/HP, here.

Samsung, recognizing print’s demise, ejects 6,000 employees and 6,500 patents - HP, Inc., like the family dog, sniffs up the crumbs.  Todd Pike looks to be the smartest guy in the room.

Just three years after marching into the world of print and boldly pronouncing, "We're poised to lead a paradigm shift. We feel the world of printing is changing.”, the Korean chip maker waves the white flag, retreating to the fiery world of cellphones and silicon.

HP is buying Samsung's 'formidable' print/copy apparatus.  It wasn't more than five years ago, that Samsung built a copier that worked.  No really, I attended the roll-out in Jersey.  A couple of new qualities they pitched were aligned output vs. skewed and variable-sized dots.

Stunning.

So now, the questions begin:
  • What does this mean for the industry? Not much.
  • Is this bad news for the Japanese OEMs? Of course.
  • How does Canon come out of this? Like Oliver Twist, "Please sir..." 
  • Who is the big winner? Mother Blue, Kali, goddess of destruction.
So too, do the pontifications:

  • "HP's acquisition of Samsung gives them the opportunity to disrupt and truly innovate in this space at a time when most other OEMs are struggling. It's a real Game Changer!!!" - LinkedIn
  • "This will shake things up a bit!!" - LinkedIn
  • "HP to acquire Samsung's Print business is big news and will further enable our managed services business. We are driving disruptive change by bringing value to our clients." - HP
Here's my take:

Not disruptive; turbulent.  

HP shelled out less for Samsung than Ricoh for RiKON and may spend half as much on marketing into A3.  Regardless of what happens on the OEM side of life, no degree of consolidation, no merger or acquisition, is going to entice customers into generating more 'clicks'.

This is War.  HP Inc. is maneuvering to be the last standing.

Today, Monday, September 12, 2016, you are witnessing the beginning of the greatest campaign in our slight history.  HP Inc.'s marketing war chest is huge and they're not doubling down on print, the farm is on the line.

But what else can they do?

In The War for Marks on Paper, HP Prevails.

There should be no doubt, that HP Inc. is in it to win it.  Even with the decline, the last person selling buggy whips is still the only one selling buggy whips.

With the infrastructure and money to put service trucks into every major market in the U.S.,  HP Inc. looks like a mega-dealer.

Think about that.

Supplies and services direct from the OEM.

Every service manager should be shaking in their boots at the prospect of HP Inc. riding into their town.  And now, HP Inc. has a value proposition that includes A3.

This is not the same HP that purchased Palm and Compaq.  These aren't the folks who clustered Hawk or propped Edgeline as the next coming, only to let it fail.  No.

HP Inc. is the real deal; they've got a plan, money, and can reach from the F100 boardrooms to the SMB kitchen tables.  The

But enough about print.  Print is not the end-all and HP Inc. is not infallible - how can you differentiate yourself from the big MpS players?

Don't sell MpS.

Instead, offer IT Lifecycle Management.  If you can sell copiers or managed services, I know IT Directors will take you more seriously when you suggest helping them manage their IT assets instead of "lowering print costs by 30%".












Contact Me

Greg Walters, Incorporated
greg@grwalters.com
262.370.4193