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 Scott Cullen

Six Degrees of Managed Print Services: The Top 10 Stories of 2010

Back in the '90s a pop culture phenomenon entered the public consciousness, a trivia game called "Six Degrees of Kevin Bacon." The game was based on the concept that any individual is six steps away from any person on Earth. In the Kevin Bacon game, actors and actresses are linked through their film roles to Kevin Bacon within six steps. With that in mind, let me propose a new game, "Six Degrees of Managed Print Services." If you scan the office technology and solutions landscape these days, it seems as if everything is within six degrees or less of managed print services. That's one of the things you'll notice with many of the items on this list of the Top 10 Stories of 2010. Like it or not, managed print services has had a dramatic effect on the office technology and solutions industry and will continue to do so.

When I first started compiling these lists, you might have been able to say the same thing about digital technology and connectivity. As the world revolves around managed print, what's less prominent on this year's list is the number of stories related to a specific OEM. I have a couple and you can bet that managed print services is lurking somewhere below the surface with some of those stories as well. It wasn't a huge year technology wise, but I did find one technology that is emerging and worth noting and one that you'll be hearing more about in the months to come. As always, this list is open to debate, and now, the Top 10 Stories of 2010:

1. Managed Print Services (MPS)

With dozens of conferences and seminars devoted to the topic and virtually every OEM and various solutions and services providers touting some sort of managed print program, this is without a doubt the number one topic sweeping the office technology industry today. MPS is like a freight train that's lost its brakes rolling down the track. There's no stopping it and it's sucking in anyone and everyone along the way. Although research indicates that only about 25 percent of dealers are currently offering MPS, that number is expected to rise exponentially as more realize that if you don't hop on the MPS train, you're going to be left hopelessly behind.

2. MFP Security

As Michael Murasic, vice president of marketing for Sharp, noted on these pages back in July, "In five minutes and thirty seconds CBS accomplished more than what Sharp did spending millions of dollars." Sure, the CBS News story about MFP security that aired back in April exaggerated the threat, but that didn't stop the public or the industry from reacting. They had no choice, as dealers and equipment manufacturers were being contacted by concerned customers fearful that their deepest corporate secrets were ripe for the plucking on their recently returned MFPs or their existing MFPs. The hubbub, and we're not using that word lightly, has seen much of the office technology industry come together to address the situation thanks in large part to the Business Technology Association, which has taken the lead in addressing this issue with the FTC and the public to help allay consumer fears and show that the industry is serious and working collectively to eliminate and reduce any real and perceived threats. We'd be remiss if we didn't point out that BTA's and the rest of the industry's reaction underscores the fact that the security alarm set off by CBS is something that the industry as a whole has been well positioned to deal with for a long time.

3. The Ricoh IKON Transition

It was not a huge surprise when Ricoh acquired IKON, considering Ricoh had a reputation for acquisitions even though other names were bandied about prior to the acquisition as potential buyers. Ricoh got a lot for their money even when one considers the fact that IKON stock was not what it once was at the time of the acquisition. The IKON business is certainly something that has expanded Ricoh's footprint. What remains uncertain and was in full force at press time is the transition stage of the acquisition, particularly from a direct perspective. No doubt it's going to be challenging and we probably won't be looking at the same old Ricoh and IKON when the smoke clears.

4. The Departure of Ricoh Chairman & CEO Mike Espe

That didn't last long. Mike Espe, former chairman and CEO of IKON, is named chairman and CEO of Ricoh Americas Corp. in late May 2010, and by July has departed for greener pastures, placing the length of his term and his achievements at the helm of Ricoh Americas Corp. on a par with that of 19th century U.S. President William Henry Harrison. There were rumblings from some industry analysts about just how effective Espe was going to be at the helm of two struggling companies, especially given that IKON has been struggling the past few years. On the other hand, there were some Ricoh dealers who were optimistic about what Espe was going to bring to the company. Now we'll never know.

5. A4 On the Rise

If some of the items on the Top 10 list look strikingly familiar to what made last year's list, that's because they are. Remember when many industry analysts proffered their annual prediction of how this was going to be a breakout year for color? Eventually they got it right, but that didn't stop that prediction from being one of the Top 10 Stories of the year for four or five consecutive years. A4 has made this list before, but this time it's for real. And this time, more OEMs have become believers as have an increasing number of dealers, as the number of A4 products hitting the dealer channel has increased exponentially. The industry has finally realized that if you can't fight them with an A3 MFP, might as well join them with A4 devices. It certainly helps the MPS frenzy is driving interest in A4.

6. Green is Still Good

Here's another old story that's still got some legs. The industry continues to tout green and sustainable initiatives and more devices coming to market have some sort of green component to them, whether it's long-lasting toner cartridges, high yield toners, parts and components, the manufacturing process, and the ubiquitous energy saver mode. You name it, most manufacturers are going green and aren't afraid to talk about it. Add to that greener manufacturing processes and a corporate commitment to the environment, this is a movement that's here to stay…sort of like rock and roll.

7. The Continued Economic Downturn

It's a fact of life and it's still having an effect on the industry with declining hardware sales along with corporate layoffs and restructurings from the OEM to the dealer level. On the bright side, the economic downturn is creating new opportunities for dealers and manufacturers who can make a strong case for cost-saving solutions and services via their MPS programs.

8. The Industry Plugs into Wireless and FollowMe Printing and Printing from the Cloud

It's not a completely new concept, but Wireless printing, FollowMe printing, and printing from the Cloud are gaining popularity. If you're an office technology dealer you're probably familiar with Ringdale's FollowMe printing technology. If not, you should be. Not only are some of the OEMs touting this flexible solution, but Equitrac recently announced a Follow-You printing capability with their new Equitrac Office SMB that lets users print from any device on the network. In addition, with technologies like Google Cloud Print, the Web printing capabilities of HP's ePrint printers introduced in June and the Cloud-printing capabilities of the HP Photosmart, Officejet, LaserJet, and Designjet lines announced in September, expect to see more flexibility in how and where users print from here on out.

9. Lexmark Gets Some Respect

With the acquisition of Perceptive Software, a provider of Enterprise Content Management (ECM) software and solutions, Lexmark now has compelling document workflow solutions and a managed print services portfolio. Meanwhile, as HP has become the ubiquitous name in office printing, more office technology dealers are looking for an alternative-an alternative that also allows them to make a few dollars on a printer sale. Enter Lexmark, a brand that up until recently hasn't received the respect it deserves within the dealer channel, but now seems to be catching on with a lot more dealers.

10. Making a Big Production with Printing

Submitted for your approval, the Canon Océ acquisition and the continued focus on production print by the likes of Ricoh, InfoPrint, Konica Minolta, and Xerox, and there should be little doubt that the OEMs are looking to make even bigger strides in the production printing space.

Scott Cullen has been covering the office technology industry since 1986 and is a regular contributor to ENX.

 
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