About Me

I'm the President of LaserNetworks, North America's largest independent MPS Reseller. My team and I are focused on continuing LaserNetworks's innovation and leadership across the company's core business of its MPS Cost Per Page® program, established in 1996. 

I am also a founding member of the MPSA and currently sit on the board. 

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The Future of Managed Print Blog

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Is the Primary Objective of Managed Print Services to Rip & Replace?

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As more copier companies enter the print market touting their new & improved MPS offering, many are pushing MPS as being the centralization of print.  Why?

 

I found a recent case study addressing the centralization of print.  It's an American University with 500 printer-based devices and the study was led by Ricoh.  The findings suggested the University was paying an average of $0.09 per page for mono laser printing (supplies only).   The laser colour printing cost was pegged up to $0.32 per page.  Wow!!!

 

NOTE: watch for a future blog on consumable pricing.  As a teaser, the blog will confirm that mono laser print supplies, purchased independently, are expensive.  However, it's highly unlikely they'll cost $0.09 per page without significant abuse from the users. 

 

OK, back to the case study.  According to the Ricoh assessment, these 500 printers supported a total annual page volume of approximately 750,000 pages.  Based on this info, the volume equates to fewer than 1,500 pages per device per year...or 125 pages per device per month.  Wow!!!  Admittedly, I've never seen this type of scenario and, accepting the Ricoh assessment, would suggest the installed laser printers may last another 20 years before needing an upgrade.  However, Ricoh chose the ‘Rip & Replace' scenario and installed approximately 70 Ricoh MFPs at a cost approaching $500,000.  Ricoh called the solution a Managed Print Solution with the belief it would solve the problem of ‘printer creep' within the University.  It also notes the removal of personal printers.  Please see this earlier Blog on the personal printers & how best to manage cost & productivity.

 

Certainly, the University requires a managed print solution...but managing the solution doesn't mean throwing the baby out with the bathwater.  It doesn't mean a measureable reduction in user productivity.  It doesn't mean an outlay of capital to replace newish equipment with brand new equipment.  It doesn't mean a radical change in print culture and intense user backlash.  It DOES mean managing the environment...and the starting point should be managing the existing environment.  It's less disruptive to users.  It's less expensive to the company.  It's better for the environment.  It's a lasting solution that eliminates rogue purchases of print devices and contains the cost of supplies & service. 

 

As the recession eases, many companies are attempting to rebuild revenues and profits without adding employees.  I believe it's part of the jobless recovery.  Decisions around print must focus on both cost savings AND improved productivity...and the ideal MPS solution will provide both every time.  Unfortunately, the above Ricoh case study may not provide either.

Comments

I agree that "centralizing print" and CPC are not MPS - although it could be a componenet of an Engagement. 
 
 
 
Technically, the traditional copier transaction with service agreement could be called MPS - if the copier is connected. 
 
 
 
But you are correct, the key is "managed". We can be sure that there really won't be an management of output resources in this deal, until the existing lease gets close the the expiration date...
Posted @ Tuesday, December 08, 2009 10:32 PM by Greg Walters
Good post... 
 
We've written a lot on "manage, then optimize" vs. "optimize, then manage" MPS -- pros/cons for vendors and customers, deployment considerations, etc. Ping me if you're interested. 
 
That said, you're absolutely right that change management and planning is more critical when optimizing first... HP has a whole set of "Your print fleet is about to change" collateral it deploys prior to modifying the fleets of enterprise customers.
Posted @ Wednesday, December 09, 2009 8:05 AM by Omri Duek
The "rip and replace" strategy will be the undoing of the manufacturers and offer opportunities to those of us able to deliver a device agnostic support model.  
 
 
 
As more consulting centric model's emerge the hardware companies will find it more and more difficult to force clients into doing what only enriches the manufacturer (short term). Every day we hear stories of companies that embraced MPS but feel trapped and uninformed by providers that mislead on change management concerns. Brochures and training only go so far...
Posted @ Wednesday, December 09, 2009 11:47 AM by Myles McPartland
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