By Allie Philpin
Gartner, Inc. has just released their latest update of their Magic Quadrant for Managed Print Services, Worldwide 2013 and the top 10 MPS providers worldwide remain the same, including last year’s new entry, Kyocera!
Gartner defines Managed Print Services (MPS) as a service provided to ‘optimise or manage a company’s document output to meet certain objectives’. Those objects could be cost efficiency, increase productivity, or to lessen the load on IT support. MPS is primarily implemented by corporate companies with over 500 users, although smaller enterprises are discovering the benefits of investing in an MPS solution, particularly those that have several locations worldwide. But for this report, Gartner limited it to providers that are single source across a minimum of two regions.
MPS covers a range of services including scanning, document capture, copy centres, telecommuters, workflow optimisation including restructuring of document workflows, document security, reducing print volumes and automating paper-intensive document processes, enterprise content management services and MFPs (multifunction products).
MPS is one of the fastest growing service markets with the top 10 providers of MPS services massing $8.9 billion in direct revenue, demonstrating a worldwide growth of 10%, with SMEs showing the quickest growth overall. Developing regions, such as Asia/Pacific which shows growth at 19%, are also taking up MPS exponentially. As trends continue towards mobility, cloud computing, handling of large amounts of data and analytics, as well as social media, organisations are required to adapt. As workers become more mobile yet demand better access to applications and the sharing of documents, there is a need for automating imaging and print services towards the paperless office.
Criteria for inclusion in the Magic Quadrant for Managed Print Services, Worldwide report is strict and only vendors that meet all the criteria are included. Their evaluation criteria are based on two areas: the Ability to Execute and Completeness of Vision. Ability to Execute examines the providers’ level of success in delivering results, both currently and in the future, and incorporates the quality and efficacy of their processes, methods, systems or procedures to enable competitive performance that is efficient, effective, and affects revenue in a positive way, retention and reputation.
Gartner identified 10 MPS providers that they considered to be market leaders in the field of Managed Print Services, Worldwide, as follows:
1. The largest MPS provider in 2012 was Xerox, and by quite a margin at $2.75 billion in revenue. Xerox work in partnership with Fuji Xerox to support the Asia/Pacific region; and their Enterprise Print Services (EPS) and Xerox Partner Print Services plans are the most popular.
2. Second largest in 2012 is Ricoh, bringing in $2.09 billion in revenue, utilising their wide range of A3 MFPs. In 2009, they launched their Managed Document Services and a single service plan that offers a range of options and variations that can be adapted to meet a customer’s requirements.
3. HP was the third largest in 2012 with revenue of $1.52 billion, but with more customers than other MPS providers. Again, their offering is single source but it is adaptable with additions that can be tailored to a company’s needs. HP also works with Canon and other partners to ensure that what they offer is what the customer requires.
4. Fourth largest was Lexmark who brought in revenue in 2012 of $958 million, and who specialise in organisations that carry out a large amount of process-driven printing, for example, the banking, retail and securities, insurance, healthcare, manufacturing and the public sector.
5. HP partners, Canon, are the fifth largest MPS provider and enjoyed revenue of $810 million in 2012. Canon’s MPS business is built upon their massive MFP sales and service organisations, and is based around their Managed Document Services (MDS) A3-centric product.
6. Sixth largest is Konica Minolta, totalling $391 in MPS revenue in 2012 worldwide and also registers one of the highest growth rates at 48%, principally in Western Europe and North America. Konica Minolta’s Optimised Print Services (OPS) offering has been particularly successful within Europe.
7. Toshiba came in seventh posting MPS revenue of $163 million. Their Toshiba Encompass incorporates MPS and they are also a big supplier of A3-style MFPs, which are often placed in MPS programs.
8. Pitney Bowes is the eighth largest MPS provider and registered MPS revenue of $154 million (according to Gartner’s estimate). Having sold off their UK and Ireland operations, their business is mainly concentrated in North America.
9. Ninth in the list is ARC Document Solutions, with revenue of $72 million. ARC, a large MPS provider, is not an equipment manufacturer and it isn’t closely linked with a single manufacturer.
10. Last in the top 10 of MPS providers is Kyocera. Having improved and up-scaled their MPS program – Managed Document Services (MDS) – recently, it first qualified for inclusion in the Magic Quadrant report last year and whilst their biggest market is North America, their MPS program is more widely known in Western Europe.
If you’re a medium to large organisation looking to evaluate and identify suitable MPS providers, then Gartner’s report is a good starting point; but remember, just because Managed Print Services is the buzzword (or buzzwords!) doesn’t mean that it is right for your organisation. So assess and evaluate based upon your specific needs as a business.
To read the full report, download here .