Print firms have been living on borrowed time, or at least you might think so if you’d been reading anything in the tech press for the last 20 years or more.
The paperless office was originally to have been brought about by desktop PCs, then the internet, then laptops, then smartphones, then tablets and – most recently – the cloud.
The decline and fall of a print and imaging business – Kodak – is taught as economics 101 to demonstrate the madness of not embracing our all-digital future.Paper and printing is the past, cling to it at your peril.
What goes around
“We need to start thinking in cycles,” says Ricoh SA’s director for direct channel operations, Robert Janssen. “Print isn’t dying, because there’s a social aspect to it. Just as in Europe, banks are opening physical branches and in the US, Amazon has bricks and mortar shops, we’re seeing people interested in really old-fashioned technology like duplicators again.”
What’s interesting about print, Janssen says, is that trends aren’t as globalised as in other industries.
“It’s bizarre, I don’t know who’s in front or behind in the cycles anymore.”
Conversely, in South Africa, the falling price of colour laser printers is still a key driving force in the market. It’s not the only one, though, and as new technologies and prices appear, they drive new trends.
“What we’ve seen is a shift in the way people use printers,” says Frans Smit, head of sales, Rectron. “Where you used to have a small A4 machine on your desk, you now have an Office Automation (OA) machine doing three times what that one does, it looks better and is the same size. So we’re seeing the move into OA as it becomes more affordable.”
More so than many other areas of IT, however, vendors around the table seem confident in their ability to differentiate against each other and, as a result, a variety of sometimes conflicting themes come up.
“The beauty is that we all sell differently,” De Waal says. “The market is stable, but it’s moved from black and white to colour, from A4 to A3 and now back again. The printing industry is becoming so diverse in all segments. In our view, it's one of the most exciting times to be in printing.”
Managing it all
What everyone does agree on, however, is that the move to Managed Print Services (MPS) is real and well under way.
“We’re seeing a large shift to MPS,” says Gavin Meyer, executive director of Itec SA.
“For us it works because it can remove a lot of a customer’s pain points. It’s about moving away from focussing on the box and the basic output on a page, and gives you the ability to bundle services with intelligence behind them, which will allow an IT department to make decisions.
“A lot of the software in those bundles is directly linked to workflow and moving away from the traditional desktop and copier kind of environment.”
The key to MPS, Meyer says, is the intelligence in the network, using analytics to understand what a business really needs and make more efficient use of the available resources. That means giving an IT department the ability to reduce its device footprint.
Jamie Scott, general manager for technology at Datacentrix, agrees, and highlights the upside to taking on that job.
“There’s a lot of interest in MPS right now,” Scott says. “In its purest form, MPS makes printing something a business can totally outsource, from the supply of hardware and installation to the maintenance, management software layer and automated delivery of consumables. Everything can be outsourced, and it’s something IT departments are happy to give away because they can see the cost benefit, and it’s one less thing for them to worry about.”
Growing footprint
As the MPS landscape has evolved so have the degrees to which companies are happy to outsource their print and imaging needs.
That’s not to say that each vendor has a single approach to the market.
“MPS is about the customer, not us,” says Kyocera Document Solutions SA’s COO, Nancy Meyer. “Our role should be to challenge the customer and act in their best interest; to ensure they’re getting true return on investment and are hitting their objectives. We have to constantly manage that relationship and be honest about it. If the pain point for a customer is cost, we need to get the cost down. If it’s security, we need to focus on that. We have to train our sales people to have big ears.”
The shift from unit sales to trusted consultant is one that has been a clarion call across the whole IT industry for a decade, but specific skills are required to be successful in that quest.
“The landscape has changed, we’re not just dealing with the IT people in a business any more. We’re talking to the finance people as the costs change from capex to opex and managing cashflows. Technology is changing at such a rapid pace as well, and the speed at which we’re turning out new technology makes managed services preferable; customers don’t want to invest in technology that will be redundant in 12 months.”
"HP Inc. has been making the shift to ‘Everything as a Service’ for some years," says local MD David Rozzio. “Customers want flexibility. There are more and more requests coming from customers, but we need to push them and educate. They’re focussed on their core business, but if you provide the right solutions or predictive analytics, customers will use it as long as there’s benefit.”
Selling the benefits can be tough, but all agreed that it’s part of the move to digital transformation of the workplace, although that’s not generally how customers think when making a print purchase. They like their sales pitches fairly simple and, on the whole, know what they want before they even call in
a reseller.
“Our first aim is to get the printers down. Let’s outsource the fleet, then we can start having the full ‘digital transformation’ talk,” says Datacentrix’ Scott.
Beyond paper
When low-cost, desktop 3D printers began to appear in the market, it was assumed that companies involved in traditional printing would see them as an opportunity to recover some growth and quickly build out new product lines. That hasn’t happened, and even HP Inc.– which does have some high-end
industrial 3D printers – doesn’t see much crossover in the usecases.
“Blended reality, where physical and digital exist together, is where the printing world is going for office use,” says Rozzio. “However, 3D printing isn’t the same world. It’s a manufacturing process.”
“We’ve looked at 3D printing,” adds Itec’s Gavin Meyer, "but it's not in the same space. The word is the only similarity, it’s just not somewhere that we see ourselves in the future.”
Printer on lockdown
For the most part, printers are a key part of an office network and the journey to full managed print services began with workgroup printers many years ago.
As recent malware attacks have proven, however, cyber criminals are becoming more adept at attacking non-PC devices, raising security concerns for the print business that haven’t been front of mind until recently.
“Traditionally, IT departments have been very concerned about laptops and computers, but they assumed the printer was safe,” says HP Inc.’s OPS category manager for South Africa, Richard Stainforth. “The responsibility is on us to ensure that the security is there at the hardware level, so that you can automatically shut down devices behaving unusually, for example.”
“We’re winning a lot of business based on security,” says Canon's Jimmy de Waal.