Do HP, Xerox and Ricoh compete with their channel partners for MPS Clients?
I recently attended a meeting with a group of professionals from various levels of managed print services (MPS) and managed document services (MDS) experience. The group included a wide representation of the hybrid dealer network of the most recognizable original equipment manufacturers (OEMs) in the industry. All the big ones were there. We were all experienced MPS Professionals with various positions, and everyone felt passionate about the strengths and weaknesses of the MPS/MDS industry today. To paint a picture, the exchange of information was heated at times, non-competitive and revealing all at the same time.
What was Revealed?
During one of the discussions, it was heavily debated whether or not there was growing competition between the OEMs and channel partners when it came to pursuing MPS clients. It was agreed all around that yes, there is increasing competition between direct and indirect MPS pursuit models. Of the stories I’ve heard recently, the outcome of the dual competition is 50/50. The question is, what is driving CIOs and CFOs to choose an OEM over the other?
Size Matters
Depending upon the size of the company, the amount of contention between the OEM and channel will vary. That makes it easy to see the potential overlap for increased competition. Based upon industry research, the OEM’s are targeting large enterprise accounts and the Channel is focused on the SMB market space, yet they all see to have dreams of landing a “big one”. Here’s the story:
Many channel providers are known for engaging MPS strategies with their clients, however, some have large “transaction-based” clients that are in some sense “paying the bills”. There are tough ones. If I help them transform, what will happen to the revenue and profit? Some are waiting too long, and the OEM’s are coming in with a direct MPS strategy.
Morale of the Story
As an MPS provider in the channel, when you look at your current traditional transaction based customer list, know that the OEM’s are hunting the largest ones down first. Here are the numbers to back the story:
DM Tracking stat = Customer engagements reported:
1) 41% OEM involvement
2) 30% Dealer/Reseller involvement
3) 29% both OEM and Dealer/Reseller involvement.
WW MPS Forecast stat: Direct Channel = 66%, Indirect Channel = 34%
Sources: 2010-2H MPS Decision Maker Tracking Study + 2010 MPS Worldwide Forecast
If you are a Channel Partner and wanting to begin, transform, or improve your delivery and success with MPS/MDS, then consider Photizo’s Partner Transformation Program.
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