Print.IT Reseller - issue 53

01732 759725 34 MPS MPS adoption in the SMB market remains relatively low, compared to the enterprise market. The managed print service model is proving an attractive prospect for channel organisations seeking to protect and grow future revenue, against a backdrop of hardware commoditisation and shrinking margins. While leading channel organisations have invested in the resources, expertise and infrastructure required to offer and deliver MPS, others have yet to make the leap. Those that have made the transition are reaping the benefits. Overall, 34 per cent of channel organisations already selling MPS have increased their revenue by five per cent or more in the last year. This compares to 24 per cent of channel organisations which are not selling MPS that have seen an equivalent rise in revenue. A recent Quocirca study revealed that the leading benefit following a move to selling MPS has been the expanded opportunities for selling document workflow solutions, noted by 67 per cent of channel organisations. Over half (55 per cent) of respondents also agree that MPS has provided further opportunities to sell non-print related services such as IT services. Enhance status The SMB market is ideal for channel organisations aiming to enhance their status as trusted advisors. SMBs face a range of challenges in tackling escalating print costs and driving business efficiency. Budget constraints and a lack of internal resources are driving many to turn to managed IT services in general to better control and manage their IT infrastructure. Despite this, the shift to MPS is a work in progress for many channel organisations as the transformation requires significant changes to be Managed print services are an untapped opportunity for channel organisations to extend their influence within the SMB market, says Quocirca Research Director, Louella Fernandes Opportunities abound for MPS providers made. Copier dealers may have built up decades of expertise in developing the infrastructure to serve clients on a contractual basis, but other channel organisations do not have such capabilities and may find themselves needing to build new platforms, design new services and develop recurring billing processes. Consequently, many print channel organisations still make most of their revenue on their legacy transactional equipment and peripheral sales. Quocirca’s survey reveals that transactional sales continue to represent just over 60 per cent of revenues for print channel organisations. However, the shift to building a recurring service model through MPS is underway – 35 per cent have fully evolved to MPS with 37 per cent indicating they have started, the remainder say they have yet to start or have no interest in growing their MPS business. Although many channel organisations are evolving their business and moving beyond traditional sources of revenue, this is not without its challenges. Overall, 54 per cent of participants in the recent survey report that their biggest concern in growing their MPS business is too much competition from other MPS providers, which includes their own suppliers. A skills gap is clearly evident – half report that sales and technical resources skills are a key barrier to delivering MPS. A prime opportunity The SMB market is a prime opportunity for MPS and workflow solutions. Quocirca’s recent PRINT 2025 study revealed that SMBs are dealing with a variety of print management challenges. They continue to rely on print to support their business activities, but in many cases, it remains inefficient and costly. Reducing paper usage is rated as the top print management challenge, particularly amongst larger SMBs, followed by reducing consumables costs and enhancing security. This points to the need for channel organisations to develop offerings beyond simple MPS contracts that encompass audit, optimisation and document workflow. Many print-focussed channel organisations are well positioned to capitalise on the momentum towards cloud-based, ‘as-a-service’ IT consumption amongst SMBs, by positioning MPS as an enabler of improved productivity and efficiency. By accelerating the shift to a services-led business model, channel organisations can increase the proportion of their business that comes from recurring revenue, leading to deeper and longer customer relationships, healthier SMBs face a range of challenges in tackling escalating print costs and driving business efficiency continued... Louella Fernandes