– Simon Tune
There’s no denying it: the print landscape is dramatically changing right before our eyes.
Long gone are the days when our revenue simply came from paper, toner and support. Even the major players are changing. IT and supplies VARs are moving to where the money is — print services. And, traditional print and copy VARs are moving into IT.
But, the most remarkable change we are seeing is in the growth potential of print. According to Gartner’s Magic Quadrant for Managed Print Services Worldwide, print has evolved into a multi-billion dollar empire with Managed Print Services (MPS) growing to “$8.9 billion in direct revenue from the top 10 vendors alone.”
Big Opportunities for SMB IT VARs & traditional print VARs
This newfound MPS revenue stream, with all of its services and platforms, is creating quite an opportunity for both SMB IT VARs and traditional print VARs — who now want a piece of the pie. In fact, you may not be aware of it, but the battle for your customers has already begun. How will this battleground play out? Let’s find out together. But first, let’s meet the contenders.
In This Corner: The Rookie of the Year IT VARs
Our first competitors are the new kids on the block: IT VARs. These newcomers to the managed print scene realize the revenue potential of services and are eager to step into the ring to protect their existing IT revenues. Considered a threat for their ability to knock out the competition, IT VARs thoroughly understand the channel model and have a stronghold with their knowledge of hardware/software solutions. While this group isn’t ready to revamp their business model just yet, they are becoming increasingly interested in testing out the waters with a low-cost investment such as Xerox Supplies Services (XSS)** (eConcierge in USA), especially if it helps keeps the managed services competition at bay. For them, XSS when combined with A4 devices that include the Xerox® ConnectKey® Technology could well be their entry point into the provisioning of print services.
Should XSS and Xerox® ConnectKey® Technology be the first combination punch these rookies throw in a battle for increased print revenue?
In The Other Corner: 5 Time Defending Champion Traditional Print VARs
On the other side of this epic battle are our MPS veterans: Traditional Print VARs. These champions of the MPS arena have spent the last decade developing, educating and cultivating their business and their customer base. It’s no surprise that these VARs have dominated the MPS market, and they’re not going to idly sit back while deep-pocketed competitors swoop in and try to gobble up their entire print portfolio. No, these VARs are ready to defend their title and knock the competition to the ground.
Should these champions offer the full spectrum of services ranging from basic supply fulfilment through to a comprehensive Managed Print Services solution such as Xerox Partner Print Services. Will it be enough to safeguard their investment whilst at the same time capture additional revenue streams traditionally owned by the IT VAR?
Who will win the MPS battle for market domination?
Will it be a quick take down or a KO in the first round of the rookie? Or, will the champion finally meet defeat? Share your thoughts in the comments below.
Top Image is a Royalty Free image from freeimages.com Image credit: Pablo Medina
**: Xerox Supplies Service is currently only available to Channel Partners in the UK. For US Channel Partners, eConcierge provides a similar solution
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eConcierge will make a good amount of money for small investment. Traditional methods.
What, exactly, is a print VAR? http://www.thedeathofthecopier.com
Thanks for commenting Greg. In the context of this article, we are referring to traditional Print VARS as technology businesses that sell printers, copiers and MFPS to other businesses along with value added services such as warranty extensions, maintenance contracts and have been early adopters of managed print services.
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