10 MPS TRENDS IN

#1 GrowthIn 2010 managed print services grew to more than a quarter of the global imaging revenue for business. Photizo’s Market Size, Share and Forecast report showed the market continuing to grow at a rate of 22 percent for the next five years, and becoming $68 billion market by 2014. Asia Pacific is currently the fastest growing market (64% CAGR).

#2 Alliances Bloom

The MPS industry saw a lot of friendships blooming in 2010. The deals are beneficial to both sides. For example, HP and Canon sell hardware and FedEx gets foot and Web traffic in their alliance. Some of the most notable:

• HP, Canon and FedEx form printing alliance• Canon France and Accenture• HP and Toshiba in Asia Pacific• IBM and Ricoh for Tivoli software interoperability.

#3 Acquisitions Flower

Besides alliances blooming, companies got into the M&A spirit and began make strategic moves to strengthen their competitive position in MPS:

• Xerox completed the ACS merger and integrated offerings as part of its IT-focused initiatives for ITO and BPO. • Fuji Xerox acquired Australia’s largest independent MPS provider – Upstream Print Solutions• Lexmark acquired Perceptive Software

#4 OEMs Marketing Shifts from Hardware to Services - Globally

This was the year OEMs really launched worldwide marketing efforts around services, with several firms showing a clear shift from selling hardware to marketing services.• Xerox – The document solutions company, launches Real Business Campaign with iconic brands, Mr. Clean and Bullseye the Target Dog• Ricoh – Managed Document Services – a global service• HP launches $40 million “Let’s Do Amazing” Campaign marketing both products and services

#5 Device and User Data Married

This was the year MPS providers married device data with user data to present a complete view of the printing environment. Several companies took a lead role and announced new products and partnerships including:

• NewField IT behavior-based mapping functionality• NewField IT and Print Audit partnership• Supplies Network and Preo Software partnership

#6 Consolidation

The MPS industry’s growth is attracting investor attention and as the industry starts to mature consolidation will surely occur. A prime example of this was found in this series of events:

• NER Data sold several divisions to Clover Technologies• Golden Gate Capital acquired Clover Technologies and West Point Products• United Stationers then took a minority interest in NER Data

#7 Executive shake ups and awards

Executives hit the MPS news in positive and not so positive ways. In some cases, the impact of their actions will not be known at least for a few more years:

• HP’s Mark Hurd resigns• Paul Curlander stepping down as CEO of Lexmark• Marko Tarkiainen leaving Lexmark and joining HP EMEA• Innes Thomson and Paul Vella leave HP and join Canon Australia• John MacInnes won Ernst and Ernst Entrepreneur of the Year Award• Valerie Belli becomes CRN’s Power 100 Winner

#8 Who’s not doing Mobile Printing?

“By next year, there will be more printing from the Web than from word processing,” stated Vyomesh Joshi, executive vice president of HP’s IPG . It seems like every player in the MPS industry and outside the industry announced new mobile printing apps, apps that can be downloaded from Web sites or mobile printers. Even Apple and Google have announced their solutions. Don’t expect a paperless office anytime soon.

#9 MPS Goes Vertical

Much like Lexmark has done with their vertically-oriented strategy to sell printers, MPS has seen the first of many companies that has taken a vertical and developed a deep vs. wide strategy. Auxilio has established itself as a force to be reckoned with. Since its inception, Auxilio has pioneered best practice print strategies for health care. They are the first and only health care exclusive, vendor independent MPS company in the nation. We expect other companies to follow suit.

#10 Photizo Expands Globally

To meet the growing interest and emerging MPS market in AP, Photizo hired Keng Keng Tan to head up an office in Singapore. Now Photizo has six offices throughout North America, Europe and Asia. In addition, the first Asia Pacific MPS Conference was held in Singapore in September with over 100 MPS attendees. This has spurred the second annual Asia Pacific MPS Conference that will be held in Sydney, Australia in 2011. Photizo now has consultants and analysts in North America, Asia and Europe, with events spanning to Australia, Brazil, Germany and a global conference in Orlando in 2011.

Copyright and Notices

© 2010 Photizo Group Inc.

These slides may be used and copied as long as full credit is given to the Photizo Group for authorship.

For questions regarding this presentation, or to request a quote for articles and to inquire about speaking engagements, please contact mhamel@photizogroup.com

Contributors:Mike Huster Sr. ConsultantMisty Hamel MPS Insights Editor and PublisherEdward Crowley CEODavid Cameron Sr. Client AdvisorRob Sethre Sr. ConsultantKen Stewart Sr. ConsultantSteven Swift Sr. ConsultantKeng Keng Tan Sr. Consultant, MD Asia Pacific