competitive analysis idc marketscape: emea managed print...

Filing Information: January 2013, IDC #KD01V, Volume: 1, Tab: VendorsEuropean Print and Document Managed Services and Solutions: Competitive Analysis

C O M P E T I T I V E A N A L Y S I S

I D C M a r k e t S c a p e : E M E A M a n a g e d P r i n t S e r v i c e s 2 0 1 2 H a r d c o p y V e n d o r A n a l y s i sArnaud Gagneux Tosh Prabhakar

I D C O P I N I O N

This IDC study assesses nine hardcopy vendors that are participating in the managed print services (MPS) market in EMEA. Vendor selection included vendors with existing and developing MPS programs. This assessment discusses both quantitative and qualitative characteristics that explain success in this important market. Growth of print services will continue to escalate as companies of all sizes recognize the savings and efficiencies that can be realized under such programs, and vendors compete aggressively to expand market reach and gain share.

Despite the continued uncertain economic outlook across Europe and downward pressure on overall IT spending, IDC believes the conclusive benefits of print services will lead to a greater increase in vendors shifting focus toward a service-led operation. With this, IDC continues to be positive regarding the long-term outlook for the print services market. But as the market matures, it is evidently becoming increasingly competitive as additional players such as systems integrators (SIs) and IT managed service providers (MSPs) enter the market to capitalize on increasing demand.

Customers need consistency of delivery. MPS needs to be delivered in a similar manner across EMEA. This is far from being simple as local laws and regulations in addition to local languages make it very challenging and more resource-intensive.

Appropriate go-to-market strategy. Few vendors are able to cater for all types of companies in all countries. While most can demonstrate success at the local level, only a few are able to also support large multicountry and multibrand deployment and support on a global basis.

Customers need security requirements. Technological solutions should be adopted to expand to accommodate increased numbers of mobile and remote workers. Support services also should be implemented.

Alliances and partnerships. Strategically growing via alliances or partnerships with third-party providers will help enhance management capabilities around services and support and can help provide access to a larger customer base.

Moving above and beyond cost savings. Leading providers are able to offer customers comprehensive document management and workflow optimization solutions that will allow companies to gain efficiencies and reduce costs.

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In This Study 1

Methodology ............................................................................................................................................. 1Definitions................................................................................................................................................. 1

Situat ion Overview 2

Introduction............................................................................................................................................... 2IDC MarketScape Vendor Inclusion Criteria ...................................................................................... 3

Key Industry Trends.................................................................................................................................. 3Focus on Consistent Global Delivery................................................................................................. 3Verticalization .................................................................................................................................... 4MPS Through Indirect Distribution Channels..................................................................................... 4Cross-Environment Approach............................................................................................................ 4Commoditization of Software Solutions ............................................................................................. 4Increased Security Concerns............................................................................................................. 4MPS and IT........................................................................................................................................ 5

Market Strategies...................................................................................................................................... 5Strategies .......................................................................................................................................... 5Capabilities ........................................................................................................................................ 8

Future Out look 10

IDC MarketScape: EMEA MPS Market Vendor Assessment.................................................................... 10Vendor Summary Analysis ....................................................................................................................... 13

Canon................................................................................................................................................ 13HP ..................................................................................................................................................... 15Konica Minolta ................................................................................................................................... 16Kyocera Document Solutions ............................................................................................................ 17Lexmark............................................................................................................................................. 18OKI .................................................................................................................................................... 19Ricoh ................................................................................................................................................. 20Sharp................................................................................................................................................. 21Xerox ................................................................................................................................................. 21Other Vendors ................................................................................................................................... 23

Essent ial Guidance 24

Learn More 25

Related Research..................................................................................................................................... 25

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1 Key Strategy Measures for Success: Managed Print Services .................................................... 5

2 Key Capability Measures for Success: Managed Print Services .................................................. 8

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1 IDC MarketScape Worldwide Managed Print Services Vendor Assessment ............................... 12

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I N T H I S S T U D Y

This study is IDC's first annual vendor assessment of the EMEA MPS market using the IDC MarketScape model. This assessment discusses both quantitative and qualitative characteristics that explain success in this important and growing market. This study is composed of two sections. The first section describes characteristics that IDC believes would lead to success in the MPS market. These characteristics are based on vendor surveys conducted for this study, IDC's end-user surveys, and analyst observations of best practices.

The second part of this study is a visual presentation of the resulting vendor analysis in a single bubble chart. This concisely exhibits the quantified scores of the reviewed vendors along two axes — strategies and current capabilities — which determine if the vendor is a leader, major player, contender, or participant. In addition, vendor market size (as determined by direct MPS and BPS revenue) is indicated by the size of the bubble. This section also provides vendor summaries that discuss IDC's positioning of each vendor in the market along with commentary on strengths reflected in their scoring and opportunities for improvement.

This study concludes with IDC's essential guidance to vendors in support of growth and improved offerings.

M e t h o d o l o g y

IDC MarketScape criteria selection, weightings, and vendor scores represent the extensive research foundation used to study the market and specific vendors. IDC analysts base individual vendor scores and ultimately vendor positions on the IDC MarketScape graphic on detailed surveys and interviews with the vendors, publicly available information, and end-user experiences to provide an accurate and consistent assessment of each vendor's characteristics, behavior, and capabilities.Market weightings are based on surveys and interviews with vendors andend users and the input of a review board composed of IDC experts in the market.

D e f i n i t i o n s

The definitions distinguish between MPS and basic print services (BPS). MPS is the subject of this IDC MarketScape analysis, covering vendor strategies and capabilities. However, vendor revenue estimates used to determine the bubble size in the IDC MarketScape graphic reflect both MPS and BPS revenue. This revenue was generated from products and services delivered directly from the manufacturers to their end customers.

Both BPS and MPS must include the following:

Contract scope refers to third-party management of a group or fleet of printers and/or MFPs (may also include other device types such as scanners).

Contract length is multiyear.

Environments cover distributed office environment and may include in-plant, CRD, or datacenter in addition to office environment. However, contracts that only include centralized facilities are excluded.

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Coverage includes one of the following product and service combinations:

Ink/toner and maintenance/repairs

Ink/toner and maintenance/repairs plus printer/MFP hardware (purchases and leases)

Consolidated fleet billing refers to a single bill for at least consumables(ink/toner), maintenance, and repairs (break/fix) for all the printers/MFP fleet ofdevices under management. Billing may have a hardware component.

Fleet usage monitoring tracks print/copy volumes. The service includes a remote monitoring solution while acknowledging the fact that non-network connected machines would require manual monitoring.

In addition, MPS must include the following:

Detailed upfront assessment. Provider analyzing a sample of the organization's actual print/copy usage and recommends an output strategy for optimization with defined goals

Fleet usage analysis/reporting. Ongoing analysis, reporting, and recommendations against predefined goals

Ongoing optimization. Ongoing optimization with proactive management using the provider's resources to continuously manage the environment toward contract goals

Change management. A formal program with education and incentives to get employees and their managers to achieve and sustain contract goals for printing and document workflows

S I T U A T I O N O V E R V I E W

I n t r o d u c t i o n

The MPS market continued to grow at a healthy rate of 12.5% across EMEA in 2012,mainly (and paradoxically) driven by the negative macroeconomic conditions, disruptive technology trends, and a shifting business model in the hardcopy imaging space that has rapidly evolved toward a service-focused industry. The continued economic uncertainty surrounding EMEA has forced businesses to reassess their purchasing behavior and processes and consequently seek greater assistance from print providers and print service providers to help them effectively with cost control, controlling print volumes and improving organizational efficiency and employee productivity by enhancing corporate workflows. The difficult economic climate is a key driver in pushing customers toward employing a print service offering. In many cases,cost savings are attainable very quickly and for relatively low upfront investment, with companies also being able to shift financing their print estates from a capex to an opex model.

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There are many print services on offer from a wide variety of suppliers, and individual vendors themselves offer several solution packages dependent on the type of customer they are targeting and customer requirements. The term "managed print service" is often quoted by many for service offerings that don't necessarily feature the specific requirements for full MPS as required by the IDC definition. If the offeringdoes not include ongoing optimization or change management, then by definition,these are BPS offerings provided they feature a multiple device type and multiyear contract.

Although MPS essentially will help in the areas we have highlighted above for midsize and large organizations, MPS offerings may also be used in areas such as staffed services (e.g., copy/printing reprographic centers and the teleworker sector). Print service offerings can also extend to include development and enhancement to document security and help environmental impacts with device power consumption factors.

Growth of print services will continue to escalate in EMEA as companies of all sizes recognize the benefits print services can offer, from cost savings to greater efficiencies for working processes. IDC expects both the MPS and BPS markets to continue to grow healthily in the next five years. IDC forecasts the MPS and BPSmarket to grow at a CAGR of 14% from 2011 to 2016.

The major markets across Western Europe continue to drive the MPS and BPS markets. Germany, France, and the U.K. remain the top 3 big markets in Western Europe, accounting for over half of the region's revenue for contract value.

IDC MarketScape Vendor Inclusion Criteria

Participation in the study was extended to hardcopy vendors that offer MPS and BPS. IT outsourcing companies that either offer print services as part of their IT services or subcontract those services to hardcopy vendors were excluded from the study. Companies deciding not to participate in the study were scored using publicly available information and the analyst's knowledge.

K e y I n d u s t r y T r e n d s

In our research for this IDC MarketScape analysis, several key trends became apparent. Many of these trends reflect vendor initiatives to expand their MPS portfolios as "traditional" fleet management and optimization become commoditized and more players enter the market.

Focus on Consistent Global Delivery

Virtually all of the leading vendors emphasized the ability to deliver consistent print services globally as an important differentiator. Consistency refers to global uniformity of products (both hardware and software), services, and pricing; standardized training of sales and support personnel; and billing at regional and global levels. The importance of this trend was validated in customer interviews. It is important to note that despite uniformity in promotional messaging, hardcopy vendors demonstrate varying levels of planning and execution.

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Verticalization

Several vendors have structured solutions, go-to-market strategies, and support around specific vertical industries and workflow processes within those industries. Examples are patient admissions for healthcare providers, new account processing for financial services, and testing and grading solutions for education. The result isgreater differentiation for the vendor and value for the customer that reaches beyond cost savings through fleet optimization.

MPS Through Indirect Distribution Channels

Indirect distribution of MPS refers to a variety of distribution models ranging from the channel partner functioning as an agent for an engagement that is wholly owned and delivered by the hardcopy vendor to an engagement in which the channel partner owns the contract and delivers hardware, software, and services from a number of hardcopy vendors. Some vendors distribute MPS products and services primarily through their office equipment dealers and IT reseller channels. Others are just ramping up this model. A thorough discussion of the various models is beyond the scope of this analysis. However, it is an important trend to watch because it enables vendors that have predominantly served the enterprise market to expand into the growing SMB space, putting them in competition with vendors that have traditionally served SMBs.

Cross-Environment Approach

Another way vendors are expanding their market reach is by offering management of centralized print environments (copy center/CRD, datacenter, and mailroom) or procurement of external print as a component of an MPS engagement. Some vendors supplement onsite production print facilities with their own or a partner's external production capabilities. The value for the vendor is greater share of the customer's wallet. For the customer, benefits include rightsizing of the entire enterprise for greater cost savings by ensuring that jobs are produced on the most appropriate device. Some vendors are pursuing this business aggressively, while others take a more opportunistic approach in response to customer needs. Vendors that were key players in the print facilities management market are well positioned to leverage those capabilities in combination with management of office distributed fleets. Partnerships are also leveling the playing field.

Commoditization of Software Solutions

In the past, a vendor's software portfolio could serve as a key differentiator, but in today's market print management solutions are a given utility component of any contract and, in many cases, are sourced from the same third-party software provider. While we are seeing innovation in the delivery of these solutions (e.g., cloud enabled), most offer little competitive differentiation. Exceptions are software implementations that manage specific business processes and/or specific vertical industry applications.

Increased Security Concerns

Driven by the ubiquitous presence of network-connected devices, cloud-enabled solutions, and an increasingly mobile workforce, MPS customers are turning greater scrutiny on the security of their document production, transmission, and storage. Vendors are responding with a variety of solutions from "follow me" printing to virtual shredding.

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MPS and IT

Several vendors are leveraging existing IT resources or building IT capabilities that parallel MPS offerings. We expect to see greater convergence of IT outsourcing and MPS as customers seek a single source to manage all desktop, printing, and imaging resources and vendors develop the capacity to do so. Past IDC research has shown that the ability to integrate MPS with other IT projects and the breadth of IT outsourcing capabilities rank highly with all company sizes.

M a r k e t S t r a t e g i e s

This section includes definitions of market-specific factors and their weightings that were used to evaluate the vendors in this IDC MarketScape. The MPS market exhibits characteristics that suppliers must consider when crafting future strategiesand leveraging existing capabilities to best advantage. The factors were weighted because IDC believes that some are more important than others in maximizing market opportunity and realizing market success.

This IDC MarketScape is brand new in EMEA and is based on interviews conducted in the second half of 2012 to early 2013. It relies on the methodology of the worldwide MPS MarketScape with adjustments in the weighting of criteria to reflect regional idiosyncrasies.

Strategies

The strategies category (see Table 1) focuses on high-level strategic decisions and underlying assumptions about offerings, customer segments, business, and go-to-market plans for the next three to five years. This category considers whether or not a vendor's strategies in various areas are aligned with customer requirements (and spending) over that time period.

T A B L E 1

K e y S t r a t e g y M e a s u r e s f o r S u c c e s s : M a n a g e d P r i n t S e r v i c e s

Strategy Criteria Criteria for Success Subcriteria Weighting

Offering strategy

Functionality or offering roadmap

MPS' current functionality and architecture is extensible to meet future customer needs. Future needs include but are not limited to capabilities such as document security, auditability of document processes, green initiatives, capture and document processing, mobile printing, and support of line-of-business (LoB) and vertical complex business processes. The architecture supports both paper and electronic document workflows, manufacturing and/or procurement of production print, direct and indirect channel delivery/support, and both local and global delivery.

Additionally, both the technical infrastructure of the delivery and ability of the architecture to sustain additional services were considered. The architecture has been tailored to cater for regional requirements.

3.00

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T A B L E 1



Delivery model MPS can be delivered in a variety of ways including software as a service (SaaS), cloud computing, onsite, offsite, or a combination or hybrid of all of these. Determination of the appropriate model needs to reflect the size of the customer as well as the channel delivering the service.

The delivery model has been adapted to the regional demands and constraints.

2.00

Cost management strategy The vendor has a well-defined strategy to reduce the cost of professional and support services to replicate and scale software solutions across customer sizes, verticals, and geographies and maximize margin and competitive pricing of its offering.

The strategy must be specific to MPS components, including software, consumables, maintenance, and support for multiple brands and for both direct and indirect distribution.

2.00

Portfolio strategy The MPS offering is well-supported and enhanced by a portfolio of complementary offerings provided by the company or its ecosystem of best-in-class partners. The vendor has a well-defined acquisition strategy and funding ability for both software and services. The vendor has demonstrated the ability to leverage other divisions in its organization.

All of these components reflect a future vision for the MPS market, such as role of print vs. electronic document workflows, support for vertical and/or LoB processes, direct vs. indirect distribution, country/regional vs. global customers, and support for office/home workers and manufacturing and/or procurement of production print.

2.00

Other offering strategies The vendor has plans to offer or enable financing for both direct and indirect MPS customers. The vendor's strategy includes contract term flexibility such as contract length, variable break/fix response time to meet customers' varied needs, guaranteed cost savings, and support for mixed brands.

1.00

Offering strategy total 10.00

Go-to-market strategy

Pricing model The vendor realizes that customers want pricing models that match their unique interests. MPS contract pricing models include but are not limited to cost per copy, number of devices managed, monthly device pricing aligned with or without usage, a cost-saving sharing arrangement, or a hybrid of several of these types.

2.00

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T A B L E 1



Sales/distribution strategy The vendor understands that an MPS offering can be sold by either direct or indirect channels to serve a broader range of customer sizes and requirements. In understanding this, the vendor has committed the appropriate field resources to support multiple channels with an array of right-sized offerings. Vendor has a demonstrated strategy to grow depth and breadth of indirect distribution channel.

The strategy has been adopted by regional and local management teams.

4.00

Marketing strategy The vendor understands that MPS will be a significant revenue stream for this market both currently and in the future. Comprehending this, the vendor has taken the appropriate steps to educate the market on the value and extent of its MPS service and provide differentiable features that help separate it from competitive offerings. Planned marketing investment clearly represents the importance of the MPS business.

The strategy has been adopted and adapted by regional and local management teams.

2.00

Customer service strategy The vendor understands that the "ability to deliver" is one of the most critical facets of a successful MPS offering. In addition, vendor can demonstrate that beyond the technology infrastructure required to meet the service deliverable, it recognizes that the administration and "people"delivery of the service is vital to producing YoY value to the customer. Finally, the vendor can demonstrate comprehensive reporting and measurement of delivery capabilities, including renewal rates and customer satisfaction. Vendor has identified regional idiosyncrasies.

2.00

Go-to-market strategy total 10.00

Business strategy

Growth strategy Management has articulated internally and externally a strong commitment to delivering a robust MPS offering and a plan for achieving growth in this market that aligns well with the market trends anticipated over the next three to five years. Strategy may include the following elements: direct and indirect distribution; SMB and enterprise solutions; regional, multinational, and global reach; home worker, office, CRD/in-plant, and print procurement; business process document workflow; and portfolio extensions for differentiation.

3.00

Innovation/R&D pace and productivity

The vendor understands that to increase the capabilities of its MPS offering, it will need to tap not only its internal development resources but also partner with other companies to bring differentiable and innovative capabilities to the market. Vendor has a clear strategy for both R&D investments and partnering.

3.00

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T A B L E 1



Financial/funding model The vendor has proportionally allocated the financial resources to deliver a robust MPS offering in the marketplace to the current and emerging market opportunity. Commitment of funding and percentage of total revenue are used to score these criteria, including investment in R&D, marketing, and channel programs at regional or local level.

2.00

Employee strategy The vendor has in place an employee strategy that provides both compensation and advancement opportunities for personnel associated with the sale, delivery, and administration of MPS. Strategy includes both direct and indirect channels.

2.00

Business strategy total 10.00

Source: IDC 2013

Capabilities

The capabilities category (see Table 2) focuses on the capabilities of the companyand product today. Under this category, IDC analysts look at how developed and good a vendor's capabilities are that enable the vendor to execute its chosen strategy in the worldwide market.

T A B L E 2

K e y C a p a b i l i t y M e a s u r e s f o r S u c c e s s : M a n a g e d P r i n t S e r v i c e s

Capabilities Criteria Criteria for Success Subcriteria Weighting

Offering capabilities

Functionality/offering delivered

Vendor's current MPS offering provides the appropriate balance of resources to deliver the MPS (technology), support (personnel), and administer (e.g., billing integration, change management, and service dispatch) the service. In addition, scores reflect full-featured deployment of capabilities identified in the definitions provided above. In addition to the minimum MPS requirements described in this definition, vendor offers some or all of the following capabilities: document security, auditability of document processes, green initiatives, capture and document processing, mobile printing, support of LoB, and vertical complex business processes. The vendor supports multiple brands, distributed and centralized environments, both paper and electronic document workflows, manufacturing, and/or procurement of production.

3.00

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T A B L E 2



Delivery model appropriateness andexecution

Vendor's current MPS offering can be delivered either remotely or onsite, leveraging a variety of technology models including SaaS, cloud computing, and Internet services linked to either onsite or offsite application servers. Delivery is evaluated based on technical functionality, administration, and scalability.

2.00

Cost competitiveness The vendor has in place a well-defined business model and understands the costs associated with delivering a successful MPS. This model is also predictable, ensuring the profitability of the offering over the life of the contract while meeting customer requirements. The model includes processes to reduce the cost of professional and support services;replicate and scale software solutions across customer sizes, verticals, and geographies; and maximize margin and competitive pricing of its offering.

The model includes software, consumables, maintenance, and support for multiple brands and both direct and indirect distribution.

2.00

Portfolio benefits delivered The vendor has put in place the appropriate resources at regional or local level to deliver the MPS effectively to the customer and provide the ability to complement the offering with other offerings. The vendor can clearly articulate at a granular level hard and soft cost savings expected in the life of the contract.

3.00

Offering capabilities total 10.00

Go-to-market capabilities

Pricing model options andalignment

Vendor's current MPS offering can be obtained using cost per copy, fixed monthly billing, volume-based pricing, or a gain/share pricing model or combination to meet customer requirements.

1.00

Sales/distribution structure, capabilities

Vendor can demonstrate ongoing channel training, supporting infrastructure, solutions portfolio, and other programs required to position and acquire services contracts. Vendor can demonstrate ongoing growth in the depth and breadth of direct and indirect distribution channels at regional or local level.

3.00

Marketing Depending upon the vendor's stated target markets (SMB, enterprise, and/or both), the vendor has clearly articulated the value proposition of its MPS offering and comprehends the needs of its target market. The vendor has invested in marketing programs that are consistent with the importance of MPS to the business at local level.

3.00

Customer service The vendor has implemented processes that ensure consistent and high-quality customer service in the local countries. The vendor has demonstrated a level of customer satisfaction in the form of high renewal rates and customer satisfaction ratings.

3.00

Go-to-market capabilities total

10.00

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T A B L E 2



Business capabilities

Growth strategy execution Vendor can demonstrate the success of its current MPS offering in the region and countries. Success can be defined as direct, indirect, and overall revenue growth, projected revenue growth, devices under management, percentage of channel delivering MPS, and joint go-to-market partnerships with other firms. Additionally, it can point to specific programs currently being deployed that are targeted at advancing the market acceptance of its MPS offering.

3.00

Innovation/R&D pace and productivity

The vendor can articulate and demonstrate the results of its internal and external investments in the current MPS offering with particular emphasis on innovative and differentiating capabilities.

3.00

Financial/funding management

The vendor can articulate its investment in the MPS offering and demonstrate the effectiveness of this investment by market share, revenue, number of contracts, or other measurable results.

2.00

Employee management The vendor can articulate and demonstrate its alignment of internal and/or external personnel resources that are helping to make the MPS offering successful in the marketplace. The sales organization is organized and compensated to drive growth for the company at all local and regional levels.

2.00

Business capabilities total 10.00

Source: IDC, 2013

F U T U R E O U T L O O K

I D C M a r k e t S c a p e : E M E A M P S M a r k e t V e n d o r A s s e s s m e n t

The IDC vendor assessment for the MPS market is IDC's evaluation of which vendors are well positioned today through current capabilities and which have strategies that will allow them to gain market share over the next few years. Positioning on the y-axis reflects the vendors' current capabilities and how well those capabilities are aligned to customer needs and how well a vendor is delivering and executing its chosen strategy in the market.

Positioning on the x-axis or strategies axis indicates how well the vendor's futurestrategies align with what customers will require in the next three to five years. The strategy category focuses on high-level strategic decisions and underlying assumptions about offerings, customer segments, business, and go-to-market plans.

Figure 1 shows each vendor's position on the x-axis and y-axis. Additionally, a vendor's market size (as determined by direct MPS and BPS revenue) is indicated by the bubble size.

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Positioning on the grid is broken down into various groupings that reflect the combined view of a vendor with respect to both strategies (x-axis) and capabilities (y-axis). The groupings are defined as follows:

"Leaders" are companies that have led and continue to lead the market in both breadth of offering and strategic intent. These companies have made the investments in service portfolios, go-to-market enablement, and delivery capabilities that set them apart from other vendors.

"Major players" are companies that have established and proven offerings in the market and had demonstrable success in delivering and delighting customers.These companies are "shadowing" the leaders and exert competitive pressures via new capabilities, channel initiatives, and other differentiable capabilities that raise the bar for all vendors in the market.

"Contenders" are companies that have defined MPS capabilities but havedelivery resources, technology infrastructure, and go-to-market coverage that are still being developed.

"Participants" are companies that are in the process of developing a MPS program or have initiated limited releases.

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F I G U R E 1

I D C M a r k e t S c a p e W o r l d w i d e M a n a g e d P r i n t S e r v i c e s V e n d o r A s s e s s m e n t

Note: Vendor revenue estimates used to determine the bubble size in the MarketScape graphic reflect both MPS and BPS direct revenue. This revenue was generated from products and services delivered directly from the manufacturers to their end customers, with the exception of OKI that sells exclusively indirectly. This approach impacts the size of the bubble for vendors that primarily deliver MPS through indirect channels.

Source: IDC, 2013

Based on the final scores on the x-axis and the y-axis, we make the following high-level observations about the various players (see the Vendor Summary Analysis section):

Leaders in this MPS IDC MarketScape assessment have scored the highest among all players in strategic and capabilities categories. All have robust portfolios and well-defined go-to-market strategies targeting growth globally across company size and through direct and indirect distribution channels.

Several vendors are major players. As major players, they have demonstratedin-depth knowledge of the market, the trends impacting the market, and how to leverage those trends for sustained growth.

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Vendors ranked as contenders have programs that effectively address some, but not all, of the key trends and success factors at play in the market. These companies should not be discounted because of their current status. Each company has demonstrable strengths that make it a viable player. Inaddition, each company is aggressively pursuing growth in this market.

V e n d o r S u m m a r y A n a l y s i s

This section covers the various vendors that were assessed in this IDC MarketScape and provides insights into their strengths. The assessment in this section only evaluates vendors' MPS capabilities, not BPS capabilities (for definitions, see the Definitions section).

Canon

IDC positioned Canon as a leader in this MPS EMEA IDC MarketScape, thanks to a new impetus and investment in services and solutions at strategic and tactical level. Canon's print service offering is built on a strong and solid financial reputation within the hardcopy printing industry, a solid and evolving range of multifunctional devices, strong printer line up, and established software solutions. The vendor scored strongly in go-to-market strategy and capabilities with potential for growth in business and offering capabilities, which were still strong but not as much as other criteria.

Following the 2010 merger with Océ, the Europe-based print supplier, Canon EMEA underwent a series of changes and transformation. The Océ partnership is now fully integrated, and Canon can now also delve into Océ's expertise and knowledge and benefit from the synergies of both companies. Canon's counterpart is particularly strong in several vertical markets. Canon is now well equipped to take advantage of this and explore these areas better. Led by its professional services business unit, a greater emphasis and investment in the past 12 months has been placed on initiatives around providing solutions and consultancy and analysis to its customers.

In April, Canon announced the appointment of Rokus van Iperen as the new president and CEO of Canon EMEA, making him the first European to lead Canon's business across the region. Van Iperen was the chairman and CEO of Océ from1999.

Canon EMEA had started to lead within Canon by developing a direct and indirectMPS portfolio of offerings. In 2012, Canon accelerated this strategy by moving toward single group responsible for all MPS across the region, which is merging with Océ Business Solutions.

Unlike in other regions, Canon EMEA sells MPS both directly through its own salesforce and indirectly through partners. This year, Canon's priority has been to design and implement a comprehensive training program for its internal sales force and its channel partners.

The finalized Managed Print Service Accreditation was introduced in November 2012, built upon its existing Partner Program. This is an extensive compulsory training program for its sales force and its partners, focusing on helping them transform their businesses from hardware sales to higher value document solutions and services.

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MPS is becoming one of the separate accreditation levels that Advanced Solutions Partners can chose. The accreditation is for delivery of any MPS based on standards set by Canon but not exclusively for Canon MPS. Canon's Partner Program aims to provide appropriate training and support to ensure partners have the skills required to attain accreditation. This includes the development of a joint business plan with Canon to agree shared targets for the year, access to Canon's PartnerNet communications portal for marketing and sales support, and eligibility for the Canon Premier Partner Club, which rewards top performing partners with exclusive access to Canon Europe's management team.

It covers three main areas:

Service delivery and people. Partners must have the capability to meet customer requirements and follow recognized service delivery standards and methods based on Canon's metrics.

Infrastructure and technology. To allow partners to describe and document the services and processes they will sell to businesses supported by a suite of print management tools, business models, and customer experiences, helping the partner grow and adapt their businesses to meet the objectives agreed with Canon and continuously deliver the right services and value-add to their customers.

Canon direct sales force. It is similarly trained with an additional focus on offering full MPS (not BPS) to SMBs.

Canon expects most of MPS growth to originate in West European countries.Subsequently, Canon is delegating responsibility for tactical and operational marketing to each local country that is responsible for the implementation of the European offerings in their market. Marketing and communications on MPS is driven by the regional headquarters, with all countries adapting and adopting these MPS campaigns in the way that they prefer.

There are some notable differences between Canon and other vendors. While services and support is delivered from a central business unit responsible for all consumer and professional products, professional services is a group within services and support. Furthermore, Canon does not offer its own financing on a pan-European basis, but it relies on local subsidiaries to have national agreements with local banks.Although there is a master service agreement in place with two or three partners, it is largely a local initiative. Canon partners can use these relationships should they choose to. However, Canon is able to offer all types of contracts, from simple acquisition of hardware with click and service on the supplies to gain sharing with all the legal intricacies it implies.

Throughout the year, Canon revamped its hardware product range, ensuring that most of its MFPs are designed with MPS and Solutions in mind. Canon's Uniflow and imageWare technology and Océ's own large IP portfolio are seen as key differentiators and would be the foundation of the manufacturers' future platform strategies. Furthermore, Canon maintains strong alliances and partnership with third-party solution providers.

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Canon's rapid execution of its new strategy indicates that it is likely to catch up with itscompetition very soon and — everything else being equal — is on its way to potentially overtake some more established vendors. Canon has now gained greater expertise and experience with larger customers, winning larger global accounts.

HP

In Europe, HP has two distinct offerings and strategies (direct and indirect),which have both been assessed independently before being aggregated to reflect HP's global portfolio. IDC positioned HP as a leader in this IDC MarketScape.

HP scored strongly on its capabilities and strategies in both direct and indirect, and scored extremely high on its go-to-market strategies and capabilities. One area of potential improvement is enhancing its marketing and communications on services as opposed to products and technologies, which are well catered for.

While HP has acquired some significant companies over the past few years, the impact and benefits this will have on its MPS strategy are not yet clear.

In the direct engagement model, HP uses its own sales force to cater to large accounts on a global basis. HP offers direct financing through HP Financial Services, allowing the manufacturer more flexibility than having to rely on third-party credit facilities. As usual for an MPS contract, this would cover multivendor fleet management projects. HP offers three levels of pricing that can be made available in a variety of formula: "level pay" where a fixed fee is paid every month with regular adjustments, basic plus click where a fixed cost covers depreciation and variable costs are charged separately, and all-inclusive click where everything is included in a variable click charge. HP can also offer guaranteed saving pricing or gain-sharing contracts, although these are not in high demand due to the complexity of setting up such contracts.

HP's reorganizations have not stopped the training of the sales force in selling MPS and consultative print solutions. HP's MPS marketing (execution) is owned by the countries (e.g., Germany, France, and the U.K.) and their local subsidiaries, which are focused around product marketing.

HP traditionally communicates extensively on its technology and innovative product features with less emphasis on services and managed solutions than some of its competitors. However, HP has recently announced new innovative A4-based MFP products tightly linked to a cloud-based document solution, Flow CM Professional.

Key to its strategy is building up and maintaining strong relationships with its clients and using these as case studies and customer references with non-clients. HP is keen to prove its local expertise at the country level, thanks to national solutions days and customer events. MPS is marketed to key verticals with more specific messages for each.

HP usually operates its own customer and service centers across Europe that would take over any technical issue at the second level; first-level support being managed by the client's own IT department. Eventually, issues could be escalated to the business unit manager. Customer satisfaction is measured and reported back to management. HP's MPS growth strategy is set at global level but offered and implemented at regional and national levels. In Europe, HP is expanding its MPS reach to production printing and offers BPO through its EDS business unit.

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In the indirect engagement model, through the channel, HP partners can either offer HP-branded MPS or their own (branded) MPS. Under the Smart Printing Serviceumbrella, the HP-branded channel MPS program, the partner leads the sales effort, offering HP or third-party financing to the client. HP then manages the fleet under management according to the needs of the client. The contract can be owned either by HP or the partner.

Under the pay-per-use channel, the partner-branded program, the partner organizesthe financing and management of the contract, usually relying on local financial institutions they may already be working with. Partners have access to dedicated toolsets, discounted hardware, supplies, and spare parts as well as manage the pricing themselves.

HP invested significantly in its training program for partners, covering all aspects of the products and solutions offerings and the sales process.

HP's strategy is to grow both direct and indirect channels, with more emphasis on enhancing and growing the SPS part of the business to nurture its loyal partners and generate mutually profitable opportunities. SPS is available in Western Europe, whileGermany is the single largest market for partners. The challenge is to move partners from a pure transactional business model to a hybrid transaction and contractual one to address customer needs. Some countries such as Russia have a strong appetite for transactional sales and are reluctant to adopt the services business model.

HP's offering in both direct and indirect is very strong as reflected by its leader status. HP's focus on products and technology will need to shift more toward solutions and services. One of the vendor's key strengths is its existing IT partners, although they are being approached by competitors that are rapidly coming up with strong MPS offerings.

Konica Minolta

Konica Minolta's program offering is named Optimized Print Services (OPS), andincludes consultancy as well as hardware and software implementation. IDC positioned Konica Minolta as a major player in this IDC MarketScape.

The vendor has robust scores in go-to-market capabilities and strategies. Konica Minolta has a clearly articulated marketing strategy across channels and regions; it further offers the full range of pricing from cost per page to gain sharing.

While the vendor plays both in the indirect and direct channels, some countries favor supporting dealers to investing in building their own skills and capabilities as a vital part of the strategy. Konica Minolta's direct MPS offering includes vendor-managed financing, while local dealers have the choice to tie in with other finance partners.

MPS' largest demand comes from Western Europe. While Germany has already implemented the channel program, other local countries are either rolling out the European program or already have a local program that they may upgrade to the EMEA blueprint. For the direct sales force, OPS is a mandatory part of their training in Western Europe. Konica Minolta focuses on quality of service, ensuring that it isbetter than the competitor it replaced. Konica Minolta is constantly improving its customer service capabilities, adding ITIL ITSM certification and process design certification to its service delivery.

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Its repair and service support is not subcontracted, which has given it a competitive advantage in some parts. Furthermore, the helpdesk is based in the local country, which benefits customers.

Konica Minolta has aggressive targets for its OPS program and has demonstrated significant success in the past few years. Germany is Konica Minolta's largest and most advanced market in Western Europe, and it is particularly strong in Central Europe, France, and some of the Nordics and is focused on extending opportunities in the U.K. and Latin Europe.

Kyocera Document Solutions

Kyocera Document Solutions' highest scores were in business strategy and go-to-market capabilities. Kyocera's Managed Document Solutions (MDS) offering promises reduced costs and improved performance to customers via a traditional multistep project management process. Kyocera, more than other vendors,emphasizes its green IT credentials — this has been one of the manufacturer'sdifferentiators for years and is ingrained in the company's culture. The Konica Document Solutions business is largely indirect, although it also has a direct touch model, which it can use if needed. IDC positioned Kyocera Document Solutions as a contender in this IDC MarketScape.

While Kyocera Document Solutions is moving from pure hardware manufacturing to a services and solutions focus, it is keeping its green IT background and association within the new business model. Kyocera develops and markets its own capture process, device management, and output management solutions under its own brand.

Kyocera Document Solutions continues to sell via its traditional indirect channels route while investing in a direct channel route via a global initiative. Global Services, the direct arm of Kyocera Document Solutions, brings hardware-based value-added solutions to market under a managed document service umbrella. Kyocera's MDSdifferentiators are strongly product-based via its TASKalfa and ECOSYS offerings.

Furthermore, Kyocera Document Solutions is seeking to enlist developers, thanks to its hybrid platform for advanced solutions (HyPAS) program. HyPAS aims to provide developers with comprehensive tools to develop applications to extend the capabilities of the firm's hardware.

While Kyocera Document Solutions strives to offer its branded solutions, it also partners with best-of-breed alternatives when needed. Local Kyocera Document Solutions subsidiaries are free to adopt local initiatives.

Kyocera Document Solutions is aiming to protect its traditional hardware business and grow in multibranded solutions and services. Kyocera Document Solutions isstrong in midsize businesses and local governments and needs to demonstrate its capabilities to deliver on a global basis.

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Lexmark

Lexmark scored high on its business strategy and capabilities and very high in offering and go-to-market capabilities. Channel program development is an area of potential growth for Lexmark, whose strength resides in the direct route to market. Lexmark pioneered MPS in Europe before expanding the activity to other regions. It is now an experienced player in the region with a proven track record with over 13 years of MPS experience and a claimed MPS renewal rate of 96% over the past five years. Lexmark's strategy is to evolve from being a leading hardware vendor to becoming a leading service and solution provider. IDC positioned Lexmark as a leader in this IDC MarketScape.

Over the past few years, the company has conducted an aggressive and targeted strategy of acquisition (e.g., Perceptive, Brainware, ISYS, Nolij, Pallas Athena,and Acuo). This allows the manufacturer to own its intellectual property and technology. At the same time, it also exited segments that no longer fit with this strategy.

Lexmark uses internal resources at all levels to support the MPS activity from its worldwide headquarters in Kentucky, regional EMEA headquarters in Switzerland,and local national organizations that have great flexibility to tackle each market's idiosyncrasies. It also ensures worldwide consistency in the delivery of solutions and services as well as facilitates leveraging best practices across the regions.

Lexmark offers MPS directly to customers and also through partners. Lexmark provides financing directly to customers but will also work with third-party financecompanies if requested by the customer.

Lexmark has a financing subsidiary, Lexmark Financial Services, used to finance businesses for customers. MPS contracts can be priced in a variety of ways from traditional cost per page to more advanced gain-sharing agreements for large contracts with a mix of variable cost and fixed cost packages.

Its direct MPS, called Enterprise MPS, is delivered by Lexmark's sales force (including the Perceptive family subsidiary) or through selected key partners such as Fujitsu, Computacenter, and IBM.

Its channel program, formerly known as Lexmark Value Partners (LVP) and recently relaunched as Business Solutions Dealer, is available to IT and copier resellers alike with the aim to target SMBs as channel MPS is seen as the fastest-growing opportunity across Europe. There has been some significant investment in human and marketing resources in Europe to grow this business.

The EMEA Business Solutions Dealer program has been launched to replace the Lexmark Value Partner program. Its purpose is to assist Lexmark's channel partners,providing a more solution-focused offering for its customers in order to benefit from incremental business opportunities generated by managed services and document solutions and software.

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As with LVP, channel partners receive exclusive access to a range of special devices and consumables. Lexmark provides the infrastructure and support to its dealers. As of 2H12, MPS dealers also get a differentiated set of hardware printers and MFPs. This product line includes models from low-end monochrome laser printers to departmental color multifunction devices, allowing channel partners to offer tailored output strategies and attractive cost-per-page offerings. Lexmark also helps its partners with lead generation should they require it.

Lexmark has tailored its services to support both a horizontal account-based sales strategy and a vertical-based approach with consultants aligned to each vertical. Customer support is provided at the local level and with backup from a shared service center outside of Europe. Customer satisfaction is regularly measured and reported to all levels of management.

While local countries have the responsibility to take these offerings and tailor them to suit their markets, marketing and communications on managed services is an area of potential improvement the vendor could address on regional and global levels.

The most significant development in the past year has been the integration of the new companies in the extended Lexmark family and the impact it has on the company as a whole. Lexmark is very rapidly transforming into a services and solutions provider without relinquishing its strength in hardware and consumables. It is on the way to offering a comprehensive set of unique solutions that will allow companies to manage their hardware fleets, reduce their print costs, and also optimize their processes through the use of proprietary document solutions

OKI

OKI's route to market is a 100% indirect offering and has no direct sales presence, which differs from its main competitors. In our MPS IDC MarketScape survey results,OKI scored relatively high in its go-to-market capabilities and strategies, helped by investment in early 2012 in its 100% indirect MPS channel program. The organizationsupports its channel partners with training, lead generation, and tools. Local OKIsubsidiaries provide customer service support. IDC positioned OKI as a major player in this IDC MarketScape.

OKI's strategy is not global but regional, which means U.S. offerings are different fromEMEA offerings, and programs are set up by regions and implemented and tailored by local subsidiaries.

OKI's MPS ambitions were hampered by logistic issues due to the nuclear accidentand tsunami in Japan that forced the vendor to dedicate resources to MPS customersto ensure that they could always print. Huge emphasis was placed on toner management in this period. As a result of this delay to execute its MPS strategies, OKI intends to catch up on lost ground. The second half of 2012 was a challenging period for OKI as OKI EMEA was dealing with internal accounting problems identified in Spain.

OKI's channel program, Total Manage Print (TMP), covers all aspects from demand generation, sales process automation, communications and marketing support, training and certification, and framework agreements for financial offering. The organization does not offer its own financial services but has built both European and country-level relationships with financial institutions so deals can be used and chosen— OKI Data acts as a warrantor for this.

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OKI offers two types of MPS program, one for copier dealers and one for IT dealers.Copier dealers brand their own MPS program, while IT dealers resell OKI Data's prepackaged MPS offering.

OKI differentiates the hardware between the ES range exclusively for MPS contracts and BNC range solely for transactional dealers. Pricing varies from standard cost per page up to guaranteed savings but does not offer gain sharing. Each country can further tailor the European blueprint for the MPS channel program.

Areas of improvement for OKI would be the marketing and communication program. Further investment in customer service is recommended. Despite recent upheavals,OKI's partners remain extremely loyal, showing trust in the company and its commitment to the channel.

Ricoh

Ricoh scored highly in its go-to-market strategies and current portfolio offerings.Business capability scored relatively high but lower than some of its close competitors. Ricoh's MPS offering is part of a global document management service. Ricoh is already leading beyond MPS, educating the market on the benefits of document management process efficiencies in addition to pure print cost savings. In Europe, former IKON expertise is proving to be a competitive advantage. While Ricoh's solutions can be tailored to SMBs, the strength of the vendor is in global, multinational, and multibrand contracts. IDC positioned Ricoh as a leader in this IDC MarketScape.

Ricoh's offering mostly follows a direct sales engagement model, with some significant support to partners in most developing and developed countries. In the rest of the world, Ricoh uses an indirect route to market through distributors.

Ricoh has embraced cloud technology by introducing the RICOH Global Clariti tool set for centralized control of device-related information and processes. This tool is vendor-agnostic, supporting multibrand and multilocation environments.

Marketing is coordinated and centralized with strong investment in a new channel program (MDS). Ricoh MPS supports multibrand, and the company's internal financing arm supports its own products. Ricoh has standardized its service portfoliosacross the world. It offers a variety of financing options potentially extended to third-party finance providers at the request of the customer. All types of pricing are available from click charge, pay-per-page, rent, and lease up to gain share.

Ricoh has set aggressive growth targets in Europe, backed up by significant investment in training its salesforce and channel partners as well as indirect partners, service and delivery support, and marketing and communications through thought leadership campaigns. While Ricoh adapts its MDS offering to individual customer requirements, the methodology is defined in a globally consistent strategy and framework.

Ricoh's MDS dealer certification program is aimed at supplying partners with the tools to transform their business from box selling to services, solutions, and consulting. The focus is on change management rather than products.

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All the Ricoh operating companies provide local call centers with local language support and are moving to a 24 x 7 availability model. Ricoh offers a wide range of support options from fully managed service to first and second line support on hardware, software, and solutions. Customer satisfaction is benchmarked and measured at local and regional levels.

While cost reductions are met, potential areas of improvement would include speed of execution. Other areas of opportunity for Ricoh beyond vertical would be further expansion into IT services.

Sharp

Sharp has been offering MPS services for less than five years in Europe.Sharp's services strategy is regional and not global, and its program in EMEA is called Optimized Services. Although Optimized Services is primarily a direct offering, dealers can market their MPS under that name. Sharp offers finances directly through framework agreements via banks and underwrites its dealers' contracts.IDC positioned Sharp as a major player in this IDC MarketScape.

Sharp's pricing model is based on cost per page, rental, and leasing. Sharp does not commit to guaranteed cost savings or gain sharing. Traditional services can be tailored to customers' needs. Sharp's offering is similar to its competitors' but is different on price.

While Sharp is experiencing some organic growth, the vendor pursues a strategy of selected acquisitions at the national level throughout Europe.

In terms of presence in EMEA, with the exception of Poland, Sharp relies on distributors throughout Central and Eastern Europe.

Sharp does not run an exclusive channel program, but it offers advanced training to its multibrand dealers. Training is voluntary and does not lead to accreditation and certification. Sharp partners with printer vendors on occasion.

Sharp's client base is mostly SMBs, local government, and public sector. Sharp's newly created global services is aiming to target major accounts across borders. Sharp is embracing the cloud and moving its assessments and reporting solutions into a decentralized 24 x 7 platform. Sharp aims to offer customers with more flexibility and customization in device control and management, leading to strong proactive maintenance. Sharp is keen to develop deep relationships with customers and requires consultants to engage on a quarterly basis.

Sharp has demonstrated that it can partner and deliver MPS to a variety of customers across EMEA and has major potential for growth in new geographies, verticals, and large multinational environments.

Xerox

IDC positioned Xerox as a leader in the EMEA MPS IDC MarketScape. Xerox scored extremely highly in its offering and go-to-market strategies as well as go-to-market and business capabilities. Xerox has one of the longest-running MPS programs in the industry and through the years has demonstrated its ability to deliver and execute on worldwide/global and local/national projects.

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Xerox offers MPS and BPS to global and multinational enterprises through its direct sales and alliance partners and to SMBs through its channel partners. Key features of the Xerox MPS offerings include support for both Xerox and non-Xerox devices, fleet management, multiyear contracts, consolidated billing, document workflow, centralized print, copy center, and print outsourcing. Xerox offers two pricing models the most popular being the price-per-impression model (i.e., a "pay as you click utility"model in which the customer is not required to sign a lease). The other option is the base-plus-click model that requires the customer to sign a lease and bundles the services in the base amount for this price plan.

Xerox acquired NewField IT (a print consultancy and software solutions provider) in 2011. This led to some reshaping of alliances across the industry. The NewField IT acquisition helped enhance Xerox' position in MPS assessment and design.

Up to 90% of Xerox's direct sales force worldwide are trained to sell MPS. Individuals can be certified and accredited in three different areas, namely sales, operations, and technical. Channel partners have a dedicated tiered certification training program. These programs are managed centrally to ensure consistency of training.

Xerox's integrated marketing program has focused on lead generation through seminars, awareness, sales engagements, and public relations. Xerox is also using social media and virtual events as part of its integrated marketing campaigns. Xerox MPS helps customers optimize their print devices and supplies, automate business processes, and reduce print costs in their office, mobile, remote worker, and production print environment called centralized print services. Other Xerox MPS capabilities include advanced security in conjunction with Cisco and McAfee (two of Xerox's strategic alliances), tools, and practices to improve customer sustainability and put emphasis on business intelligence and analytics to reduce customer print.

Xerox's main MPS service delivery center is based in Dublin, with additional scale and capacity through a satellite operation in Lisbon. Furthermore, Xerox has support centers in Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, and Switzerland to support MPS contracts where Xerox is delivering IT outsourcing (ITO)and business process outsourcing (BPO) value-added services. Customer satisfaction is accurately and rigorously measured and acted upon.

Xerox has experienced strong growth in MPS and is expected to continue with this in the future. Opportunities for Xerox are to successfully capture the SMB space through its channel partners and provide additional document, BPO, and ITO services to large enterprise customers.

As with the most experienced MPS vendors, the expansion into SMB is a key opportunity for future growth, helping fight off would-be new entrants to the MPS space and the commoditization of the MPS in the larger account segment.

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Other Vendors

The following vendors were not included in this year's MPS EMEA MarketScape.

Brother

Brother's newly introduced MPS program allows small and medium-sized companies to lease the hardware and then pay for the supplies on a "per click" basis. It is primarily aimed at enabling companies to reduce their total printing cost through one-off device consolidation and management of Brother's devices exclusively.

Brother's MPS package includes installation, training, and service plus a web portal to make printing devices easy to manage. It does not offer continuous fleet optimization with proactive management but does fall under our BPS definition. Brother's program is offered through selected dealers.

Brother has the opportunity to grow in the SMB space, thanks to its strong position in this segment. Brother would need to support multibrand devices first as a supplier of BPS.

Epson

Epson's print management service, while targeted at medium-sized and large businesses, would also be categorized as a BPS. Epson's package includes a detailed upfront assessment with fleet usage and reporting. Cost of hardware, supplies, and services is spread over the client's contract period as a monthly "click charge" service. Consolidated invoicing and management reporting is also part of the Epson package. Change management and continuous optimization of the fleet would be required for it to qualify as MPS. This is a channel offering. Epson has an opportunity to expand and would need to enhance its program to comprehensively support multibrand devices and an extended set of software applications.

Del l

Dell markets a managed service that encompasses all IT hardware. Dell offers asset management, configuration and deployment, onsite services, and service desk. Printers are included in the list of hardware that Dell would manage. However, the current offering does not qualify as MPS as it includes neither continuous fleet optimization nor change management. IDC believes Dell has a strong opportunity to develop and evolve its managed services division going forward, and we believe that Dell will intensify its MPS through this channel offering.

Samsung

Samsung was not included in this year's MPS review as the vendor does not have an MPS offering in EMEA yet. This will be reviewed in the next study. With the introduction of a new A3 range, Samsung is positioning itself to become a supplier of BPS and MPS in the industry.

Pantum is presently building its distribution in EMEA and is not focusing on services.

Kodak does not have a presence in the region.

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E S S E N T I A L G U I D A N C E

A number of key trends are emerging in the dynamic MPS marketplace. In many cases, these trends translate into factors for vendor success. These, in turn, drive our essential recommendations for hardcopy vendors and MPS suppliers.

MPS providers should thoroughly consider the best route to market.IDC recommends MPS providers consider various factors ranging from the impact of the maturity of economic markets, market dynamics, and strong cultural market/brand relationships before choosing to opt for a multichannel model or considering either direct or indirect routes to market. It is wrong to assume that adopting a multiroute to market is always and necessarily the correct option.

Take hardware out of the equation and focus on solutions and services.Technology is no longer a major differentiator in the industry. The intelligence built on the devices as well as their upgradability, connectivity, security, and scalability is far more important than incremental gains in print engine speeds and feeds. Leading vendors have taken the decision to gradually focus on solutions and services, either through alliances or acquisitions, to ensure that customers have access to complete business solutions that help them reduce cost, create efficiencies, and focus on their core activities.

Embrace new technologies. As we continue to see the print and hardcopy industry in transition, it is essential that hardcopy vendors/MPS providers seriously consider the impact of cloud, mobility, and security on their business needs and offerings. For instance, businesses accepting mobility as an important process across their infrastructures should open up vast opportunities for MPS and solution providers via security and mobile support services.

Documents and processes are hybrid paper and digital; vendors/MPS providers should identify inefficiencies and offer best practices.IDC research shows that processes are mixed paper and digital. Aiming to migrate to digital only is fraught with risks and creates its own problems; not only are the inefficiencies of the paper-only processes transferred to digital, but ancillary problems also emerge. Expertise in hybrid solutions and the history of business cases in real situations help ensure that knowledge gained from past experiences is used.

SMBs desire and call for fully featured MPS packages. Comprehensive MPSsolutions need to be tailored and adapted to SMBs. This usually means that the cost of such solutions needs to be revised. Vendor should not only simply and automatically defeature a comprehensive MPS offering in order to reach a given price point. SMB solutions need to be as comprehensive as the ones offered to larger companies and the public sector. Developing vertical solutions and owning a part, if not all, of the technology can help a vendor achieve such an objective.

Owning an intellectual property is not an option. Vendor/MPS providers should seriously consider developing a strong alliance and partnership with third-party organizations. Partnerships can provide access to broader opportunities and customer bases.

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L E A R N M O R E

R e l a t e d R e s e a r c h

Western European Document Solutions 2012–2016 Forecast and Analysis (IDC #KD03U, December 2012)

Worldwide and U.S. Managed Print Services and Basic Print Service 2012–2016 Forecast Update and Analysis (IDC #238570, December 2012)

Market Analysis Perspective: Worldwide Managed Print Services (MPS), 2012 (IDC #238130, December 2012)

MPS and BPS Vendor Satisfaction (IDC #237624, October 2012)

Western European Imaging Hardware and Document Solutions Market Update: August 2012 (IDC #KM57U, September 2012)

Worldwide and U.S. Managed Print Services and Basic Print Services 2012–2016 Forecast and Analysis (IDC #236686, September 2012)

Western Europe Managed Print Services, Forecast & Analysis, 2012–2016 (IDC #KD01U, June 2012)

S y n o p s i s

This IDC study is our first vendor assessment of the MPS market using the IDC MarketScape model. This assessment discusses both quantitative and qualitative characteristics that explain success in this growing market. This study is composed of two sections. The first section describes characteristics that IDC believes lead to success in the MPS market. These characteristics are based on vendor surveys, IDC's buyer surveys, and analyst observations of best practices. The second part is a visual presentation of vendor analysis results in a single bubble chart. This concisely exhibits the quantified scores of the reviewed vendors along two axes (strategies and current capabilities) that determine if the vendor is a leader, major player, contender, or participant. In addition, vendor market size and growth relative to the whole market are shown. This part also provides vendor summaries that discuss IDC's positioning of each vendor in the market along with commentary on strengths reflected in their scoring and opportunities for improvement. The study concludes with IDC's essential guidance to vendors in support of growth and improved offerings.

The MPS market continues to grow across EMEA, and it is maturing and evolving its offerings in order to offer customers greater assistance with assessments, control, and productivity. This is resulting in service providers greatly focusing to evaluate and enhance its service offerings to fulfill customer demands. Going forward, IDC believes we will see a greater emphasis on areas such as change management or an end-user support program as part of the service contract for helpdesks(e.g., user training).

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The hardcopy and printing industry in transition as we see areas such as mobility having greater impact on business operations and processes. Therefore, IDC believes it is important that MPS contracts consider some type of support for mobile devices as an option for customers that have adopted such devices to their infrastructures.

This IDC MarketScape study will identify the leaders, major players, contenders, and participants that make up the current MPS landscape and reflect on the strategies and capabilities needed to be successful.

It is evident that the MPS market continues to mature and develop as the marketplace becomes more congested with the entry of new players.

"Ongoing economic uncertainties force businesses to reduce costs and optimize their operations. This creates an opportunity for hardcopy vendors to promote their managed print services to a larger audience of small, medium, and large enterprises. An increased competitive landscape forces vendors to adapt and differentiate their MPS offerings and to look for alliances and partnerships to ensure that they provide the right service to the right company through the right channel, at the right price,"said Arnaud Gagneux, research director, European Imaging, Printing, and Document Solutions.

C o p y r i g h t N o t i c e

This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or [email protected] for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights.

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