At a time when there is a growing emphasis on IT moving from a Capex to Opex model and the associated benefits it brings for customers in these cash-straitened times, I was brought up short by a comment made in passing during a recent phone conversation that seemed to spin the prevailing orthodoxy on its head.
Cloud computing, managed services and managed print services (MPS) are all touting the benefit of longer term relationships and a shift away from the transactional model to a contract-based, recurring revenue one. Channel partners are being encouraged to adapt their business models to reflect this shift so that they don’t get left behind when the mass conversion to the subscription-based model occurs.
There’s no doubt this trend is happening but it’s also fairly obvious that it isn’t happening for everyone and it might not happen for everyone any time soon. Which brings me back to my conversation. We were talking about the adoption of MPS in SMEs, in particular, and the fact that for many it might not make sense for a number of reasons.
First off, there’s the issue of print volumes. Some of these businesses and organisations just might not generate enough page prints to justify a MPS contract. For them, it could still make more sense to buy a printer or multifunction device and use it whenever they needed it.
But of more interest is that there probably are quite a few businesses that could viably and profitably use an MPS contract, but have no intention of doing so. Why? Because they are reluctant to sign a contract, cautious in fact. A contract is a legally binding document and most MPS deals last for three to five years. In these uncertain times, some businesses are even more reluctant to sign a long-term deal with a company.
With growth rates difficult to predict and the economic situation changing from month to month, it’s no wonder some companies are shying away from making a three-year commitment when they have no idea what next month might bring. MPS contracts can offer flexibility but they can also, just by being contracts, bring a level of commitment that companies just don’t want to make at this point in time.
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