FOR IMMEDIATE RELEASE
New MPS Channel Program Benchmarking Study from Photizo Group Helps Dealers Connect with Best Fit in MPS Programs First report to compare MPS programs using actual dealer feedback
Lexington, KY – September 28, 2009 – The new “MPS Channel Program Benchmarking Study” from the Photizo Group is the first comparison of vendors’ MPS programs for resellers and the first to incorporate feedback from dealers actually using the programs.
Within the next five years, the MPS business model will dominate the reseller sales channel, and dealers that strategically adapt to meet customer and market needs will gain an advantage over their competition. Dealers who make the shift from traditional hardware-centric sales to MPS-centric service offerings are called hybrid dealers, and vendor programs are an integral part of a successful transformation. With its focus on specific channel programs, dealers can use the new MPS Benchmarking Study to sort through the sometimes-confusing choices and find the right program for their business.
Rigorous Methodology Includes Feedback from Actual Users
The MPS Benchmark Study benefits dealers who are interested in expanding their MPS business and adopting a professional services-based business model. Selecting a long-term partner is a key step in the transformation process. The MPS Benchmarking Study focuses on 11 top equipment vendors, 24 MPS programs, 33 best practices and feedback from 60 dealers. The resulting comparisons are the basis of further guidelines developed by the Photizo Group to help resellers make the transition to hybrid MPS dealers more quickly.
The benchmark study compares how the vendor programs provide dealers with the capabilities and support services required to offer a MPS program. The Photizo Group used a multi-phase methodology to evaluate vendor programs. The initial criteria drew on several years of research with dealers and end users to identify the attributes and best practices that met decision makers’ MPS requirements. Eleven vendors were surveyed to understand their specific programs and how these programs compared to the defined best practices. In addition, publicly available information including data sheets, announcements, and presentations were reviewed to fully characterize the vendor programs.
The report includes dealer feedback on the actual mechanics of programs and how well they live up to expectations. About 60 dealers responded to a web-based survey regarding the actual performance of the programs relative to the performance claimed by vendors. To clarify dealer responses to the survey, in-depth phone interviews were conducted with a number of the dealers. Finally, the 11 participating vendors were provided with a final opportunity to provide additional program details and related business metrics.
Market Is Real for Hybrid Dealers
“Managed Print Services is more than just a sales approach, it’s a change to the actual business model. It entails moving from hardware sales to selling professional service contracts, which affects the product, cash flow, sales, operations and customer relationships. Vendors report dealer program dropout rates approaching 50 percent,” said Dr. David Cameron, a Senior Consultant and Partner of the Photizo Group.
Hybrid dealers average about $15 million in revenues with approximately 30 percent of their revenues coming from MPS. According to the Photizo Group’s 2009-2013 MPS Forecast, MPS revenues in North America are growing at a 27 percent CAGR, and 50 percent of devices will be under MPS contract by 2013. The size of the fleet under MPS contract was 2.1 million in 2008, and by 2013, it is forecasted that 5.1 million devices will be under MPS contract in North America. From 2009 through 2013, the forecasted growth in channel revenue will be 23 percent. “The pent up demand for controlling costs together with improving business processes have created the ‘perfect storm’ for growth in this market,” according to Cameron.
The new MPS Benchmarking Program joins a useful collection of tools designed to help dealers and resellers become successful MPS organizations. Vendors, dealers and enterprises can find out more about these and other resources at http://www.managed-print-services.com.
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Media contact:
Misty Hamel
+1-617-921-5725
mhamel@photizogroup.com
ABOUT THE PHOTIZO GROUP
The Photizo Group is the market’s main source for ongoing business intelligence about the rapidly growing opportunity of Managed Print Services. Since its landmark MPS study released in April 2008 to ongoing research covering North America and Europe, Photizo has emerged as a leader in dynamic business intelligence about the MPS market. Vendors, dealers and enterprises can find MPS information and resources at http://www.managed-print-services.com.
“Photizo” is a trademark of the Photizo Group. All other trademarks are the property of their respective owners.
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