Inkjet and Production Print Devices Make Inroads, but Minimal Impact on MPS So Far

The vast majority of devices serviced under MPS contracts are toner-based A3 and A4 units. MPS providers expect that to continue for the foreseeable future, but all agree that their programs could support other devices such as inkjet printers and copiers, production print systems, or label printers.

Business-class inkjet A3 and A4 systems are making another run at the market, driven primarily by HP and Epson. It’s too early to know how much of the market they will claim, but MPS providers believe that ink-based systems could easily be incorporated into their programs.

Luke Goldberg, Clover Imaging Group (CIG)

“We haven’t seen an impact yet [from inkjet printer], but there’s no reason why those devices can’t be managed under an MPS environment,” said Luke Goldberg, executive vice president of sales and marketing at Clover Imaging Group (CIG). He noted that dealers may be reluctant to sell inkjet systems because of the expected lower service demands. “Out of the money that’s made in MPS, about 60 to 70 percent is in consumables and the rest in service. If you have a printer that’s not serviceable, then the dealer loses out on that 30 to 40 percent revenue opportunity on service and parts.”

Sarah Custer, Supplies Network

Supplies Network handles the break/fix component of inkjet devices with service “care packs,” but Sarah Custer, director of services and solutions at Supplies Network, sees the consumables side of inkjet working much the same as for toner. “We are able to see supply levels and generate automated replenishment. We are working inkjet into our solution. We’ll see how resellers embrace inkjet in the future. For now it’s just a few mixed in with the traditional environment.”

In a few cases, dealers might have accounts where there’s an opportunity to add devices that are not usually part of an MPS contract. “An end user might really like what our program has to offer and ask our reseller, ‘Can I add my Zebra printers to the account?,” said Custer. Supplies Network has been able to accommodate those requests. It might not be able to automate the consumables process, but it can load data about those devices into its system so the customer can see them in the portal.

Bill Melo, Toshiba America Business Solutions

Toshiba America Business Solutions is piloting a program to incorporate its thermal barcode printers into its MPS program. “It’s more complicated than conventional MPS, because there are thousands of different types of media that can go into a label printer,” said Bill Melo, chief marketing executive. “The current technology can measure how many inches are being printed, but it can’t necessarily tell that five inches are on this type of label and 20 inches are on another type of label.”

Kevin DeYoung, QualPath

Qualpath is seeing an uptick in proposals that include production print. “It’s an organic migration for the MPS provider. It’s the next step up—a little more involved and a little more complex, but that’s cool because it begins to narrow the scope of competition,” said Kevin DeYoung, president and CEO of QualPath and the current president of the Managed Print Services Association (MPSA).

West McDonald, Print Audit

West McDonald, vice president of business development at Print Audit, calls label and production printers examples of “nuance opportunities.” “They’re not going to make up for the losses in traditional up and down the street office printing. It’s a niche opportunity,” he said.