HP is upping its game in the managed print services business, and this could be a boon to its distribution partners, namely Synnex. Part of this strategy, however, will include a component – a global business unit for direct business – that will compete against the channel.
The reality is, the transition to managed print services has been slow, even though it seems inevitable as hardware margins are squeezed into oblivion. Still, there has been some resistance by resellers and customers alike to move over to this model – perhaps, simply, because it represents change, and there hasn’t been a lot of consistent information available out there.
So HP is trying to get more resellers on board with managed print services, estimating enterprise print to be a US$100 billion market. This includes a new channel partner program, new printer products and an enhanced relationship with Canon that will expand its copier portfolio.
Synnex has been selected as an HP Collaborative Infrastructure Partner in the U.S. to offer resellers a full suite of managed print services using HP printing and imaging hardware. Aside from the fact HP and Synnex already have an established relationship in this area, Synnex is an ideal distribution partner since it offers PrintSolv, a managed print solution, to the VAR community.
PrintSolv, which provides a usage-based billing model, is vendor-agnostic and works with new and existing printer networks. Synnex also has a dedicated PrintSolv sales team that includes field sales, inside sales and sales support to help resellers through the managed print learning curve.
This latest deal with HP is part of Synnex’s drive to differentiate itself from the competition through the provision of incremental revenue opportunities for resellers. Just over a year ago, Synnex launched its On Demand Services program to help VARs achieve longer-term contracts with customers and gain a recurring revenue stream. This includes four areas of on-demand services: field services, managed services, professional services and edge services (which includes PrintSolv).
HP is also teaming up with niche distributors in the U.S., including Supplies Network, NER Data and United Stationers, which will work with resellers to deliver managed print services through a shared sales, infrastructure and print model.
As part of this initiative, HP has also created a global business unit called Managed Enterprise Solutions for direct customers – and this will be active in Canada. HP says this is aimed at enterprise customers, but most business will still go through the channel – and this includes new printer products designed specifically for channel partners (with warranties, for example, that maximize opportunities for services revenue).
There appears to be a potentially lucrative market out there, and it’s really a no-brainer for VARs feeling the margin squeeze, yet the managed print services market has endured a long, bumpy road. Synnex has been trying to address this through PrintSolv, and its latest partnership with HP could provide a big boost to the market – and to resellers looking for new business opportunities.
