![\"\"](\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2018\/07\/West-McDonald-PrintAudit.jpg\")
West McDonald,
Print Audit<\/p><\/div>\n
West McDonald, vice president of business development for Print Audit, notes that in addition to SaaS, the office equipment world is seeing the as-a-service model permeate document management, user management and device management. In a sense, device monitoring and management has been going on for 20-plus years on the printer and copier side, and would technically constitute SaaS when the infrastructure is hosted in the cloud.<\/p>\n
\u201cWhen you look at XaaS, that would include hardware-as-a-service, if you\u2019re paying a monthly subscription on print-enabled devices, either by seat or by user,\u201d he said.<\/p>\n
\u201cWith enterprise-level document management platforms, which in the past was anything a dealer would quote a price for software and a price for maintenance, now it\u2019s a monthly fee which comes with unlimited updates. Under a subscription-based service, as long as you keep paying your bill every month, there\u2019s no extra for updates.\u201d<\/p>\n
Once conditions become unavoidable and the dealers get into reactive mode, then I think (SBB proliferation) is going to happen overnight. I just don\u2019t know when that is or what the catalyst will be.<\/p><\/blockquote>\n
McDonald, of course, has been a champion of the seat-based billing (SBB) model for years, but only since 2016 has it began to garner traction. SBB relies on a monthly flat fee per seat for printing rights under an MPS contract, as opposed to the still-prevalent cost-per-page (CPP) calculation. The SBB takes into account consumables, parts, support and software, while leaving a window open to layer in future services. In an era of declining page volumes, MPS providers who offer SBB provide clients with a fixed budget and cost savings through workflow enhancements. Yet, CPP\u2014warts and all (overages, page count validations and the \u201chow low can you go\u201d commoditization)\u2014still has a grip on the dealer community.<\/p>\n
\u201cWe probably have 20-25 dealers doing SBB, out of a pool of 3,500 strong,\u201d McDonald lamented. \u201cWe\u2019re not very good at elected change in the office equipment world, but we\u2019re very good at reactive change. The market reality with what\u2019s happening at some of the OEMs…the pies aren\u2019t growing and they\u2019re fighting for the existing pies. Those that are doing a good job are faring OK, and those that aren\u2019t are suffering badly, because there\u2019s no new market. Once conditions become unavoidable and the dealers get into reactive mode, then I think (SBB proliferation) is going to happen overnight. I just don\u2019t know when that is or what the catalyst will be.\u201d<\/p>\n
Steve Gau,
Marco<\/p><\/div>\nOne SBB trigger could lie in St. Cloud, MN-based Marco, which is approaching the $400-million plateau for sales and is one of the nation\u2019s largest dealerships. According to Steve Gau, vice president, Copier Division, Marco is currently evaluating and testing the concept on a smaller scale and is pleased with the results. As the dealership has been offering its managed IT services on a user\/seat basis, Gau believes it will dovetail nicely on the managed print side.<\/p>\n
\u201cThe key will be to roll it out on a larger scale. We believe in the concept, and firmly believe SBB is the next phase of the copier\/printer space,\u201d he said. \u201cPeople have become accustomed to having a monthly payment forever. It\u2019s about taking and combining the different elements of the as-a-service business into single-platform billing that customers will benefit from, and moving away from meter collections and other things.\u201d<\/p>\n
The key will be to roll it out on a larger scale. We believe in the concept, and firmly believe SBB is the next phase of the copier\/printer space<\/p><\/blockquote>\n
Marco currently offers managed print and managed IT, and has annexed voice, video and cloud as a service. Its ongoing movement toward XaaS is strategic, and Gau notes that in the past 30 days, he has learned about two instances of Konica Minolta direct operations quoting print on a per-device basis as opposed to usage. Marco has enlisted the help of an industry veteran to develop its own strategy to stay ahead of local and national competitors who have the twin capabilities of MPS and managed IT.<\/p>\n
Trevor Akervik,
Marco<\/p><\/div>\n\u201cOur intent is to be seen as a technology mutual fund,\u201d noted Trevor Akervik, senior director of managed services for Marco. \u201cWe want our customers to feel we are consultative. If we offer a broad suite of what clients are consuming, in a way they want to consume it, then we can educate them on the pros and the cons of each and they can make the best decision for their organization, backed by our knowledge and expertise. If we were only one deep in a particular solution, then it would feel like we\u2019re going to give all the reasons why that\u2019s the best way to do something, and it might not necessarily be best way for that individual client.\u201d<\/p>\n
Our intent is to be seen as a technology mutual fund. We want our customers to feel we are consultative.<\/p><\/blockquote>\n
Akervik points out that Microsoft Office 365 played a role in prompting the IT space\u2019s heavy hitters to move toward more subscriptions. The dealer\u2019s as-a-service platform, while incorporating various vendor tools, are Marco-delivered offerings.<\/p>\n
\u201cWe\u2019re following the trend that clients are moving to a consumption through operating expense-type of mode,\u201d Akervik said. \u201cWe\u2019ve been forward-thinking in the way we provide offerings and now our as-a-service offerings really cover the gamut of our IT suite that used to be predominantly project based, meaning they would buy or lease product that had installation services attached to it, and they would consume on a refresh schedule. Now they\u2019re consuming that in an operating expense, a lot of which is over the internet and through a subscription.\u201d<\/p>\n
Overturning the a-la Carte<\/strong><\/p>\n
Bill McLaughlin,
Atlantic, Tomorrow\u2019s Office<\/p><\/div>\nNew York City-based Atlantic, Tomorrow\u2019s Office has embraced selling everything around a managed, recurring revenue stream that standardizes, automates and drives efficiencies\u2014a process that encompasses everything that is attached to the solution in some capacity. \u201cIn short, we\u2019ve gotten away from offering break\/fix, time\/material, being reactive,\u201d remarked Bill McLaughlin, executive vice president and chief technology officer.<\/p>\n
While Atlantic, Tomorrow\u2019s Office has provided some SBB contracts for managed print, it mainly relies on a CPP formula. On the IT side, its services are offered exclusively on a per-user basis. McLaughlin notes that customers prefer to have that one \u201cthroat to choke\u201d and value the predictability of a fixed, budgeted monthly charge, sans the \u2018a-hah\u2019 out-of-pocket moments from unbundled services.<\/p>\n
If you don\u2019t have a scalable infrastructure, it makes it difficult to layer on technologies that require you to manage more things.<\/p><\/blockquote>\n
In addition to creating more customer stickiness, it enables Atlantic, Tomorrow\u2019s Office to scale from an operational standpoint, allowing the dealers to standardize and automate their own internal processes. It\u2019s a formula that allows for greater profit while reducing excess SG&A expenses. Growth and scale from a managed IT viewpoint can be daunting for the dealer; how it delivers service and the technology required looks considerably different as its share of the pie increases. Thus, constructing a platform for scalability is extremely important.<\/p>\n
\u201cIf you don\u2019t have a scalable infrastructure, it makes it difficult to layer on technologies that require you to manage more things,\u201d McLaughlin said. \u201cWe have to match different skill sets to different positions within that platform. We\u2019ve had to incorporate new software within the help desk to allow us to gain more visibility into our customers, thereby allowing us to be more proactive in managing the infrastructure and delivering service. The challenge is the unknown, so it\u2019s important to have that scalable structure, so that when the unknown happens, you\u2019ve got a foundation and some stability.\u201d<\/p>\n
Turnkey Solution<\/strong><\/p>\n
The logic is breathtakingly simple. Why spend thousands of dollars on a depreciating asset, when you can pay a flat monthly fee that includes unlimited on- and off-site IT support, antivirus, monitoring and backup for unlimited devices? That\u2019s the value proposition offered by Verticomm, the managed IT division of All Copy Products in Denver. Indeed, any customer with an internet connection can access their mission-critical applications anywhere, a stem-to-stern platform that touches desktop-as-a-service, infrastructure-as-a-service and network-as-a-service through its Total Cloud platform.<\/p>\n
Calvin Wanner,
Verticomm<\/p><\/div>\n\u201cThrough our consulting process, we have a very rigorous question-based selling method,\u201d noted Calvin Wanner, Verticomm sales manager. \u201cWe identify some of the major key points from our understanding of the client overview: how much revenue they take in, the number of employees and locations. And if they\u2019re down, how much does it cost their organization? It\u2019s diving into the critical needs of each client.\u201d<\/p>\n
Verticomm has a specialty niche in the architecture, engineer and construction (AEC) space, but also serves accounting firms, law firms and medical facilities. \u201cReally, we serve anyone with an end point,\u201d Wanner said. \u201cThese days, everything is so network and cloud driven, or server driven, that the heart and blood of the organization is based off the laptop and\/or the apps that they\u2019re running. Without those apps running functionally, they\u2019re losing money and not growing their organization. If I can\u2019t access my email or phone system, that\u2019s a huge cost to an organization that can be missing out on a deal.\u201d<\/p>\n
Through our consulting process, we have a very rigorous question-based selling method.<\/p><\/blockquote>\n
Wanner notes that with the movement toward private cloud, it will be interesting to see the future of the cloud versus on-premise proposition. He speculates that perhaps a hybrid solution, with servers located on-site and applications hosted in Verticomm\u2019s data center, could be an option. Another is partnering with companies for storage, with Verticomm managing mission-critical application servers.<\/p>\n
\u201cI have a suspicion that, over the next three to five years, we\u2019ll see a pretty big change in the direction of what\u2019s to come,\u201d Wanner said. \u201cRight now, everyone\u2019s trying to get their hands on cloud offerings and service offerings based around that.\u201d<\/p>\n
A Cloudy Future?<\/strong><\/p>\n
Greg VanDeWalker,
Collabrance<\/p><\/div>\nWhile the forecast for cloud-based services continues to grow\u2014Gartner recently projected that by 2020, all new entrants into the software world are going to be SaaS-based\u2014a survey by Service Leadership yielded that best-in-class MSPs only have 3.3 percent of their total revenues coming from cloud resale. Thus, the question of whether dealers should be pushing their clients toward the cloud as opposed to an on-premise solution pales next to the importance of drilling down to the needs of the client, notes Greg VanDeWalker, senior vice president of IT Channel and Services for Collabrance and GreatAmerica Financial Services.<\/p>\n
It\u2019s about what\u2019s best for the customer. Who\u2019s going to manage the application\u2014the end-user, the vendor or the MSP? That\u2019s where it gets not as clear cut of a decision as I think sometimes the companies that market or sell cloud paint it.<\/p><\/blockquote>\n
\u201cWe can go to our dealers when they\u2019re selling to a customer and say, \u2018Here\u2019s a cloud option,\u2019 or \u2018here\u2019s an on-prem solution that we\u2019re going to finance, so no matter which option you pick, there\u2019s no up-front capital expense,\u2019\u201d he said. \u201cYou consume both of these monthly, so what\u2019s best for your business? Maybe the features of the cloud are better, so go that route, or maybe features of on-prem are better. Perhaps the on-prem solution is cheaper and more preferable, even though they\u2019ll forego some of the features of the cloud.<\/p>\n
\u201cIt\u2019s about what\u2019s best for the customer. Who\u2019s going to manage the application\u2014the end-user, the vendor or the MSP? That\u2019s where it gets not as clear cut of a decision as I think sometimes the companies that market or sell cloud paint it. There are financial implications, there are technology implications, security, as well as ongoing maintenance implications of on-prem versus cloud. It depends on which provider and offering you\u2019re looking at, and just because it works for the cloud one time, that doesn\u2019t mean it\u2019s going to work all the time.\u201d<\/p>\n
Still, VanDeWalker is quick to point out that the cloud is gaining more traction. Voice solutions have decidedly found a home in the cloud. And Salesforce, the ubiquitous San Francisco-based CRM platform provider, has established a position of cloud dominance, with numerous third-party platforms building plug-ins to its platform.<\/p>\n
Moving forward, VanDeWalker sees much strength in the XaaS universe as end-users clamor for consuming solutions on a monthly basis at a fixed rate. That acceptability, particularly on the IT side, will continue to grow. In the end, customers are looking for that tailored solution and cost certainty\u2014without out-of-pocket costs\u2014that will enable them to shift their focus on where it belongs: growing their own business.<\/p>\n
\u201cAs consumers, we do monthly payment solutions with cell phones, solar panels, Netflix\u2026why not do that with everyday business technology,\u201d VanDeWalker added. \u201cThat\u2019s where we\u2019re seeing the adoption of the monthly payment model really taking hold fast.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Try carving out a definition for everything-as-a-service (XaaS) as it applies to the office technology space and the dealers who serve it. It\u2019s not an easy exercise. And its title alone suggests anything and everything a dealer can provide its clients on a monthly, subscription-based format by seat or by user, often (but not always) driven to and by the cloud. It would start, but certainly not end, with managed print services and managed network services\/managed IT. The National Institute of Standards and Technology (NIST) lists three tiers of cloud service models: Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS). Other service platforms have been broken out that may be considered offshoots of the core: Telephony-as-a-Service, Desktop-as-a-Service, Network-as-a-Service, etc. West McDonald, vice president of business development for Print Audit, notes that in addition to SaaS, the office equipment world is seeing the as-a-service model permeate document management, user management and device management. In a sense, device monitoring and management has been going on for 20-plus years on the printer and copier side, and would technically constitute SaaS when the infrastructure is hosted in the cloud. \u201cWhen you look at XaaS, that would include hardware-as-a-service, if you\u2019re paying a monthly subscription on print-enabled devices, either by seat or by user,\u201d he said. \u201cWith enterprise-level document management platforms, which in the past was anything a dealer would quote a price for software and a price for maintenance, now it\u2019s a monthly fee which comes with unlimited updates. Under a subscription-based service, as long as you keep paying your bill every month, there\u2019s no extra for updates.\u201d Once conditions become unavoidable and the dealers get into reactive mode, then I think (SBB proliferation) is going to happen overnight. I just don\u2019t know when that is or what the catalyst will be. McDonald, of course, has been a champion of the seat-based billing (SBB) model for years, but only since 2016 has it began to garner traction. SBB relies on a monthly flat fee per seat for printing rights under an MPS contract, as opposed to the still-prevalent cost-per-page (CPP) calculation. The SBB takes into account consumables, parts, support and software, while leaving a window open to layer in future services. In an era of declining page volumes, MPS providers who offer SBB provide clients with a fixed budget and cost savings through workflow enhancements. Yet, CPP\u2014warts and all (overages, page count validations and the \u201chow low can you go\u201d commoditization)\u2014still has a grip on the dealer community. \u201cWe probably have 20-25 dealers doing SBB, out of a pool of 3,500 strong,\u201d McDonald lamented. \u201cWe\u2019re not very good at elected change in the office equipment world, but we\u2019re very good at reactive change. The market reality with what\u2019s happening at some of the OEMs…the pies aren\u2019t growing and they\u2019re fighting for the existing pies. Those that are doing a good job are faring OK, and those that aren\u2019t are suffering badly, because there\u2019s no new market. Once conditions become unavoidable and the dealers get into reactive mode, then I think (SBB proliferation) is going to happen overnight. I just don\u2019t know when that is or what the catalyst will be.\u201d One SBB trigger could lie in St. Cloud, MN-based Marco, which is approaching the $400-million plateau for sales and is one of the nation\u2019s largest dealerships. According to Steve Gau, vice president, Copier Division, Marco is currently evaluating and testing the concept on a smaller scale and is pleased with the results. As the dealership has been offering its managed IT services on a user\/seat basis, Gau believes it will dovetail nicely on the managed print side. \u201cThe key will be to roll it out on a larger scale. We believe in the concept, and firmly believe SBB is the next phase of the copier\/printer space,\u201d he said. \u201cPeople have become accustomed to having a monthly payment forever. It\u2019s about taking and combining the different elements of the as-a-service business into single-platform billing that customers will benefit from, and moving away from meter collections and other things.\u201d The key will be to roll it out on a larger scale. We believe in the concept, and firmly believe SBB is the next phase of the copier\/printer space Marco currently offers managed print and managed IT, and has annexed voice, video and cloud as a service. Its ongoing movement toward XaaS is strategic, and Gau notes that in the past 30 days, he has learned about two instances of Konica Minolta direct operations quoting print on a per-device basis as opposed to usage. Marco has enlisted the help of an industry veteran to develop its own strategy to stay ahead of local and national competitors who have the twin capabilities of MPS and managed IT. \u201cOur intent is to be seen as a technology mutual fund,\u201d noted Trevor Akervik, senior director of managed services for Marco. \u201cWe want our customers to feel we are consultative. If we offer a broad suite of what clients are consuming, in a way they want to consume it, then we can educate them on the pros and the cons of each and they can make the best decision for their organization, backed by our knowledge and expertise. If we were only one deep in a particular solution, then it would feel like we\u2019re going to give all the reasons why that\u2019s the best way to do something, and it might not necessarily be best way for that individual client.\u201d Our intent is to be seen as a technology mutual fund. We want our customers to feel we are consultative. Akervik points out that Microsoft Office 365 played a role in prompting the IT space\u2019s heavy hitters to move toward more subscriptions. The dealer\u2019s as-a-service platform, while incorporating various vendor tools, are Marco-delivered offerings. \u201cWe\u2019re following the trend that clients are moving to a consumption through operating expense-type of mode,\u201d Akervik said. \u201cWe\u2019ve been forward-thinking in the way we provide offerings and now our as-a-service offerings really cover the gamut of our […]<\/p>\n","protected":false},"author":166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1641],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/30146"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=30146"}],"version-history":[{"count":3,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/30146\/revisions"}],"predecessor-version":[{"id":30154,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/30146\/revisions\/30154"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=30146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=30146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=30146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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