September 2013 Office Technology

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Contents Volume 20 • No. 3

Feature Articles 10

Cloud Services For many, a welcome direction & opportunity

Courts & Capitols BTA District Events Providing information, resources & guidance

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by Robert C. Goldberg BTA General Counsel

by Brent Hoskins Office Technology Magazine

One of the most beneficial investments of my time is attending BTA’s district events. I just returned from the Capture the Magic event, hosted by BTA West in Las Vegas, and I look forward to presenting at the Sept. 26-27 Grand Slam event in Baltimore, Md.

The cloud. In recent years, these two words together have taken on an additional meaning, particularly within the office technology industry. Today, cloud services are improving business workflows, saving money and providing countless opportunities.

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Capture the Magic BTA West hosts district event in Las Vegas

by Brent Hoskins Office Technology Magazine

p r i n c i pa l i s s u e s Media Briefing: Canon Manufacturer hosts editors & analysts Aug. 8

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by Brent Hoskins Office Technology Magazine

On Aug. 1-2, BTA West hosted its Capture the Magic district event, focused on providing office technology dealers the opportunity to learn from experts, network with fellow dealers and gather new ideas and strategies. The event was held at the Mandarin Oriental in Las Vegas.

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Pursuing Managed Services Are you considering buying an IT company?

With the goal, in part, of showcasing its new headquarters, reporting on the company’s sales performance and sharing details on its strategic direction, Canon U.S.A. Inc. hosted office technology industry editors and analysts on Aug. 8 in Melville, N.Y.

Collision Course Dealers eyeing managed services, MSPs eyeing MPS

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by Mitch Morgan & Chris Ryne Growth Achievement Partners

by Mike Lamothe Office Document Consulting Inc.

Many dealers are attracted to the managed IT services business for a variety of reasons. The reasons include: an adjacent growth market, increased revenue with current and new clients, and the recurring revenue model. Frankly, the last item is one of the more attractive components.

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Unraveling 3D Printers Success rides on your desire, dedication & dollars

by Greg Gondek Advanced Copy Technologies Inc.

There is so much buzz about 3D printers lately that everyone seems to ask me the same questions: “How do you get into it?

And what does it take to be successful?” Actually, “3D” also refers to the formula you need — desire, dedication and dollars.

Much of what I have been saying about MPS for the past three years became more apparent at CompTIA’s July 29-31 ChannelCon in Orlando, Fla. The message was rather clear: There will be a collision between managed print services (MPS) providers and managed services providers (MSPs).

D e pa r t m e n t s Business Technology Association

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• BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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Executive Director’s Page

Fall Colors Retreat Set for Oct. 25-26

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ach year, attendees of the annual Fall Colors Retreat not only have the opportunity to learn from industry experts, network with fellow dealers, and gather new ideas and strategies, but they also have the chance to enjoy a particularly relaxing setting. I know. I have attended the event since 2006 and look forward to it every year.

Hosted by BTA’s Southeast district, this year’s Fall Colors Retreat is scheduled for Oct. 25-26 at the historic Waynesville Inn Golf Resort & Spa in Waynesville, N.C. This is not your typical office technology industry event setting. Nestled between the Great Smoky Mountains and the Blue Ridge Parkway and Balsam Mountains, the resort (the main lodge was built in the 1920s) and surrounding area provide an experience you will not soon forget.

The event kicks off at 4:30 p.m. on Oct. 25 with a round-table discussion, “Additional Revenue Sources from Service,” led by members of the BTA Southeast dealer volunteer leadership team. Of course, the format of the round table allows attendees to learn from one another. These round tables always remind me of the foundational purpose of BTA: Dealers helping dealers.

A welcoming dinner reception will be held from 6:30 until 8:30 p.m., giving attendees time to network with peers and the event’s exhibiting sponsors: EverBank Commercial Finance, Frontier Imaging, GreatAmerica Financial Services, Lexmark, Parts Now, PNC Equipment Finance, SmartPower Systems, Supplies Network and TonerCycle/InkCycle.

The next morning, Oct. 26, attendees will have breakfast from 7 to 8 a.m. Breakfast will

be followed by three educational sessions: “Recruiting Best Practices — Developing a Recruiting Strategy for Your Dealership,” with R. Thomas Bruguiere, vice president of recruitment at Crawford Thomas Recruiting; “Optimizing Your Service Operation to Reduce Expenses & Satisfy Your Customers,” with Ken Staubitz, national sales manager at BEI Services; and “Managed IT Is Not For Me ... Or Is It?,” with Lindsay Dick, director of sales at Collabrance. There will also be breaks between sessions, giving attendees time to visit with peers and exhibiting sponsors.

The day’s educational sessions will wrap up at 12:30 p.m., leaving the afternoon free for attendees to explore the Waynesville area. They can drive the Blue Ridge Parkway and see the fall colors, play a round of golf at one of the Waynesville Inn’s three, nine-hole courses or just relax. There are also opportunities for fishing and boating, hiking and shopping in the surrounding area. Waynesville is located just minutes away from Asheville, N.C., home of the majestic Biltmore Estate.

The Fall Colors Retreat will wrap up at 6:30 p.m. with cocktails, dinner and a closing presentation in the Waynesville Inn Cork and Cleaver restaurant. I can attest that this always proves to be a great networking opportunity for attendees.

BTA member registration is $159 (an additional attendee from the same dealership is $129) and includes the Friday round table, Saturday educational sessions, Friday welcoming reception, Saturday breakfast (Waynesville Inn guests only), cocktails and dinner. Non-member registration is $209.

For more information or to register, see the ad on page 7, visit www.bta.org/BTA SoutheastEvent or call (800) 234-8996. I hope to see you in Waynesville. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Robert C. Goldberg, General Counsel Business Technology Association Greg Gondek, Advanced Copy Technologies Inc. www.advancedcopy.com Mike Lamothe, Office Document Consulting Inc. www.officedocumentconsulting.com MItch Morgan, Growth Achievement Partners www.growthachievementpartners.com Chris Ryne,Growth Achievement Partners www.growthachievementpartners.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: iStockphoto. Cover created by Bruce Quade, Brand X Studio. ©2013 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA President’s message 2013-2014 Board of Directors

Join Me in Thanking These BTA Members

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hile the core members of the Business Technology Association have always been independent dealers, you are undoubtedly aware that we have many hardware, software, supplies and service providers that are members as well. They fall into two categories — Vendor Associates and Service Associates.

By joining the association, the companies in these two membership categories have demonstrated their support of the dealer channel. They joined with the knowledge that BTA was created by dealers, is governed by dealers and has benefit programs primarily or exclusively intended for dealers. Since you may not be aware of which companies support the association as Vendor and Service Associate members, I wanted to take this opportunity to publicly recognize and thank them.

BTA’s Vendor Associate members: ACM Technologies Inc.; Autotask Corp.; Azerty/A division of United Stationers; Color Imaging Inc.; Densi; Digital Gateway Inc.; Digitek Computer Products; Diversified Computer Supplies Inc.; DocuLex Inc.; DocuWare Corp.; ECi Software Solutions; ECi/FMAudit LLC; ESHA Corp.; ESP Inc.; Falcon Technology Solutions; FileBound; Frontier Imaging Inc.; Global Printer Services Inc.; Image Star; Impression Solutions Inc.; Innovolt Inc.; Intec Printing Solutions; Katun Corp.; Konica Minolta Business Solutions USA Inc.; KYOCERA Document Solutions; Lexmark International Inc.; LMI Solutions; MAPA Systems; Mars International Inc.; Memjet Office; Micro Solutions Enterprises; Miracle Service; Muratec America Inc.; MWA Intelligence Inc.; NA Trading and Technology; N-able Technologies; Niche

Equipment; Nuworld Business Systems; OES Technology; OKI Data Americas Inc.; Paessler AG; Parts Now; Pinnacle Sales Inc.; Polek & Polek Inc.; Print Audit; Printer Essentials; PrintFleet Inc.; Q2 LLC; Roxbury Technology; RPT Toner; Samsung Electronics America; Seine Tech (USA) Co. Ltd.; Sharp Electronics Corp.; SINDOH America Ltd.; Smart Power Systems; Square 9 Softworks; Supplies Network; Supplies Wholesalers; Synnex Corp.; TonerCycle/InkCycle; Toshiba America Business Solutions Inc.; UniNet; Universal Laser Systems; West Point Products; and Xerox Corp.

BTA's Service Associate members: Balboa Capital Corp.; BEI Services; Buyers Laboratory Inc.; Caley Enterprises; CBAC LLC; CIT; Continuum Managed Services; Copier Careers; CP Office Solution Inc.; Crawford Thomas Recruiting; DataVault; Dealer Marketing Systems; DirectCloud; EverBank Commercial Finance; Evolved Office LLC; First Call Office Products; GE Capital; GreatAmerica Financial Services Corp.; Hytec Dealer Services Inc.; IBPI; Industry Analysts Inc.; InfoTrends; Insights53 LLC; International Imaging Technology Council (ITC); Kingston Training Group Inc.; LEAF Commercial Capital; Lease Corporation of America; ManagedPrintMarketing.com; Market Mentor Online; Marlin Leasing Corp.; Melissa Whitaker International; Moving Office Equipment; MPS Connect; NPRN; Office Document Consulting; OnePak Inc.; PNC Equipment Finance; Power Appointment Setting; Print Management Solutions Group; PROs Elite Group; Prosperity Plus Management Consulting; SalesFish; SalesForce Solutions; Sentry Insurance; Sostilio & Associates International Inc.; Strategic Business Associates; US Bank Office Equipment Finance Services; and US Fleet Tracking. n — Todd J. Fitzsimons

President Todd J. Fitzsimons Automated Business Solutions DBA Network Imaging 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.com President-Elect Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com Vice President Dave Quint Advanced Systems Inc. 2945 Airport Blvd.

P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA Southeast Linda Hayes Purcell’s Business Products 222 E. 1st St. Campbellsville, KY 42718 linda@purcells.com BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Ex-Officio/Immediate Past President Terry Chapman Business Electronics Corp.

219 Oxmoor Circle, P.O. Box 531066 Birmingham, AL 35253 tchapman@businesselectronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Cloud Services For many, a welcome direction & opportunity by: Brent Hoskins, Office Technology Magazine

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he cloud. In recent years, these two words together have taken on an additional meaning, particularly within the office technology industry and IT world beyond. They immediately bring to mind a simplified means of accessing software applications via the Internet.

Today, cloud services are improving business workflows, saving money and providing countless opportunities.

Increasingly, those opportunities are being presented to BTA dealers. They bring to mind the opportunities resulting from the transition from analog to digital, the rise of color, the emergence of software solutions, and the ascent of both MPS and managed IT services. So, one could say, “The Cloud” is merely the title of the latest chapter in the story of the office technology industry — the latest iteration of its progression.

The traditional partners to BTA dealers are demonstrating not only enthusiasm for the cloud, but a commitment to helping dealers take advantage of the opportunities. For example, Ricoh Americas Corp. recently introduced its Integrated Cloud Environment or ICE, a cloud platform providing a single interface connecting workers to cloud services for document storage, management and printing via Ricoh MFPs. ICE currently provides connectors to 16 cloud services, including Google Drive, Dropbox and Evernote.

“Ricoh’s ICE solution has resulted in an incredible cost savings for our business,” says Fritz Hovey, operations manager for Ricoh customer Hearth Real Estate, San Francisco, Calif., which is now using the Internet as its IT infrastructure. “By scanning directly to the cloud, we’ve been able to remove the step of saving scanned documents to the server, ultimately streamlining the entire process.”

The customer’s use of ICE is an easy undertaking. “It is based upon having a browser,” says Craig Temple, director of software marketing at Ricoh. “Any Ricoh device that has been introduced in the past couple of years is supported by a browser option. So, for the existing customer who wants to take advantage of ICE, it is simply a matter

of getting a browser installed and purchasing the ICE license.”

Jason Dizzine, vice president of technology marketing at Ricoh, says ICE is ideal for dealers.

“We knew the product would be useful to them, particularly because in the SMB environment, it provides a great opportunity to offer a current or potential customer the ability to work within the existing workflow, but without a lot of the complexity onsite,” he says. “The value for SMB customers of having less complexity onsite, but still staying connected to the applications they need, is huge.”

Temple adds that ICE provides an easy means for dealers to advance their dealerships. “The dealer has realized that just ‘selling the box’ is soon going to result in a lost customer,” he says. “You have got to provide advanced features and services. ICE helps dealers make the transition from box selling to services and solutions. This is an easy way to make that transition without a tremendous investment.”

Others are likewise emphasizing the low investment cost for dealers. “The cloud infrastructure not only provides a cost benefit to end users, but it also provides a cost benefit to the channel,” says Dennis Amorosano, senior director of solutions marketing and professional services at Canon U.S.A. Inc. “It makes it more cost-effective for the channel in terms of delivering applications to the end user, as compared to the traditional methods of software delivery. This has a very direct impact on channel profitability.”

Canon is providing the cost savings to dealers through Canon Business Imaging Online or CBIO, the company’s cloud services platform. “CBIO provides a framework for hosting different types of discrete applications,” Amorosano says. “For example, we have connections to Google Drive and to Microsoft SharePoint Online, now migrating to Microsoft 365. We also developed forms and print services for Salesforce, a solution that integrates with FedEx Office for remote printing. Plus, we recently announced our cloud-based Intelligent Grading Solution for imageRUNNER ADVANCE, allowing educators to develop and grade exams, then generate

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analytical reports directly example, photos from the from an MFP.” holiday party onsite, and data “We have partners that have Amorosano says the curfrom inventory software, acone customer and we have rent cloud services accescounting software, mail servpartners that have thousands sible via CBIO are only the ers and databases for other of customers. As a result, we beginning. “Our intention specific applications offsite.” have partners making a few is to continue to build appliSecure, cloud-based data hundred dollars each month cations on the platform,” he backup provides a welcome says. “They will be a combiand simplified alternative to and others that are making nation of both Canon intertraditional methods, Hannihundreds of thousands of dollars ... ” nally developed applications bal says. “We give you a nice, — Tim Hannibal as well as third-party applieasy solution, with one inVaultLogix cations. There are a number terface, so that you can back of applications in the pipeup onsite or offsite without line, but they just have not been announced at this point.” the hassle of using a tape pickup company or a courier,” he Given that applications such as Google Drive are deliv- explains. “And, you don’t have to worry about tapes being ered at no cost, some may wonder about the benefit to the rotated or having the tapes themselves not work or break. dealership that connects the end user to the cloud-based Plus, you don’t have to worry about encrypting the data on service via an MFP. The benefit is clear, Amorosano says. tapes, because we do all of that for you.”

“When you are connecting your customer to the types of Hannibal says VaultLogix seeks partners that have beservices made available by Google, you are providing your come “trusted sources” for their customers. The company, customer with the ability to integrate into an infrastructure he says, has three levels of partners: agents, not providing that promotes collaboration and promotes document stor- any technical services to customers, but focused on conage and document management, which ultimately leads to necting customers to VaultLogix, with an eye on establishscanning and printing,” he says. “So, from the perspective of ing a recurring revenue stream; partners that do handle dealers, clearly the more integration they can provide their VaultLogix services implementation and technical support; customers to these types of services, the more likely cus- and partners that own and host their own data centers, protomers are going to utilize the technology to capture docu- viding Internet access, etc. ments for delivery into Google Drive, for example, and print Emphasizing that VaultLogix’s services are “very simple information that is stored in that infrastructure. So, it does, to sell and install,” Hannibal notes that the company has a in fact, promote further utilization of the MFP.” broad range of partners. “We have partners that have one Tying the MFP more intricately into the workflow at the customer and we have partners that have thousands of cuscustomer location “certainly puts the dealership in a much tomers,” he says. “As a result, we have partners making a few different position than if the dealership is just supplying a hundred dollars each month and others that are making basic standalone device that doesn’t have any type of hooks hundreds of thousands of dollars each month.” into workflow,” Amorosano continues. “Obviously, this can Despite the opportunity to make hundreds or thousands produce added revenue and certainly more tightly connect of dollars monthly by reselling cloud services such as those the dealer to the customer, helping them to maintain a lon- offered by companies like VaultLogix, and the promise of ger-term relationship.” tighter and advancing customer relationships through While traditional office technology industry vendors like initiatives such as Ricoh’s ICE and Canon’s CBIO, it is true Canon and Ricoh are offering their dealers the ability to that not every customer is transitioning to the use of Web provide customers with cloud services, there are, of course, services. Hannibal, for example, notes that there are still many other companies offering similar opportunities. Con- many companies using onsite tape backup. Amorosano ofsider, for example, VaultLogix, a provider of cloud-based fers a similar perspective. “It is important to point out that data backup services. The company offers online backup so- the cloud is not for everyone,” he says. “There are still many lutions to meet the data protection and regulatory require- customers in the marketplace who, for specific types of apments of a wide range of businesses. plications, quite frankly are not ready to move to the cloud.”

“Primarily, what we are doing is enabling customers Nevertheless, says Amorosano, the market is driving the to use a single interface to back up important data onsite growth of cloud services. “There is no doubt about that,” he and critical data offsite,” says Tim Hannibal, president and says. “It has become quite evident that the marketplace is CEO of VaultLogix. “We give them the ability to back up, for demanding a different type of delivery model for software 12 | ­w w w. o f f ic et ec hno log y m a g.c om | S e p t e m b e r 2 0 1 3

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probably be in the latter part and services and is, in fact, of this decade before we see showing preference toward “As the marketplace gets that transition,” he says. “I the cloud as that model.” educated ... you will find think it will be sometime It is just a matter of time more and more applications after 2016 or 2017 before you before those companies not ... move into the cloud. see that crossover occur.” currently using cloud serUltimately, the economics of Ricoh’s Dizzine points to vices, often out of concerns moving in that direction will a key driver of the transition about data security risks, outweigh any risks associated to the cloud that dealers will become converts, Amorosawant to consider. “We are no says. “As the marketplace with protecting data.” seeing changes occur with gets educated, I think you — Dennis Amorosano the new generation of workwill find more and more apCanon U.S.A. Inc. ers,” he says. “They are interplications, even those misested in and, in some cases, sion-critical applications housing sensitive data, move into the cloud,” he says. “Ulti- demanding to have cloud workflow. They mately, the economics of moving in that direction will out- have found the obvious benefit of not needing as much on-site support with the cloud.” n weigh any risks associated with protecting data.”

Brent Hoskins, executive director of the While today’s standard “server-based, behind-the-firewall” Business Technology Association, is editor type of delivery still prevails in the marketplace, Amorosano of Office Technology magazine. He can be adds, the day will likely arrive when software services will be reached at brent@bta.org or (816) 303-4040. “predominately delivered” by a cloud infrastructure. “It will

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Capture the Magic BTA West hosts district event in Las Vegas by: Brent Hoskins, Office Technology Magazine

O

n Aug. 1-2, BTA West hosted its Capture the Magic district event, focused on providing office technology dealers the opportunity to learn from experts, network with fellow dealers and gather new ideas and strategies. The event was held at the Mandarin Oriental in Las Vegas.

Comments shared in event evaluations reflect those of many attendees. From Tony Pezeshkian, Summit Business Systems, Edmond, Okla.: “If anyone plans on staying in the business we are in, they should attend BTA events like this to realign their business plans.” From Jerry Miceli, ABS, Fountain Hills, Ariz.: “Kurt Schmelz was excellent.”

The event featured a keynote presented by Kurt Schmelz, president of North American Resellers (NARS) of the Channel Partner Organization at Xerox Corp. There were also five other educational sessions led by Edward McLaughlin, CEO, Valderus LLC; Tibor Shanto, principal, Renbor Sales Solutions Inc.; Mitch Morgan, partner, Growth Achievement Partners; Ken Staubitz, national sales manager, BEI Services; and John Mancini, president, AIIM. The schedule also included a welcoming reception and a performance of Cirque du Soleil’s O show.

The exhibiting sponsors: Autotask, BEI Services, Buyers Lab, Crawford Thomas, Densi, Digital Gateway, DocuWare, ECi FMAudit, Esha Corp., ESP, EverBank, Falcon Technology Solutions, Frontier Imaging, GreatAmerica Financial Services, Image Star, The Imaging Channel, LEAF, LMI Solutions, MSE, Muratec, NA Trading and Technology, OKI, Print Audit, Smart Power Systems, Square 9, Supplies Network, Supplies Wholesalers, TonerCycle/InkCycle, Toshiba, Universal Laser, West Point Products and Xerox.

For information on or to register for the Sept. 26-27 BTA East-hosted Grand Slam district event, see the ad on pages 2-3 or visit www.bta.org/BTAEastEvent. For information or to register for the Oct. 25-26 BTA Southeast-hosted Fall Colors Retreat, see the ad on page 7 or visit www.bta.org/ BTASoutheastEvent. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

Clockwise from top: Capture the Magic, hosted by BTA West, featured six educational sessions; attendees visit with representatives of Esha Corp.; John Mancini presents “Changing Market Dynamics & Exploding Opportunities in Document Management”; Michael Ehlers, BTA West president, serves as emcee during the Capture the Magic event; Kurt Schmelz gives his keynote presentation, “Business Model Strategies for Growth.”

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Strategies for Growth F

Clockwise from top left: Mitch Morgan presents “Business Model for Managed Services”; attendees network during lunch; Tibor Shanto (left photo) presents “Proactive Prospecting”; Jim Brown (top right photo) of Dictronics, Needham, Mass., asks a question during a session; Roni Tavor (bottom right photo) of Universal Laser Systems visits with Frank and Penny Fukui of Woodburn Company, Everett, Wash.; Robert Golowenski of Summit Business Systems, Edmond, Okla., visits with Jason Thomas and Amy Dills of NA Trading and Technology; Edward McLaughlin presents “If I Were You”; John Hines (right) of Copiers Northwest Inc., Seattle, Wash., visits with Craig Fitzpatrick (left) and Brad Sorensen (center) of Digital Gateway; Ken Staubitz presents “Service & Operational Opportunities to Improve Your Profitability”; Donna Hulina of OKI presents Dave Quint, BTA vice president, with a prize from one of the drawings.

aced with the changing nature of the marketplace, more dealers may want to consider a new or augmented business model, but will want to make sure they are considering all of the right factors going forward. This advice was the core message of keynote presenter Kurt Schmelz, president of North American Resellers of the Channel Partner Organization, Xerox Corp.

Schmelz began his presentation, “Business Model Strategies for Growth,” with a look at key industry trends that have led to the need for a new business model among dealers. He cited declining page volumes; the focus on managed print services; and opportunities presented by the cloud as an alternative means of accessing software applications.

Sharing a personal story, Schmelz also cited the arrival of a new generation in the workforce among the key industry trends.

He spoke of his college-aged sons and his gift of a printer for the first as he entered college and then the re-gifting of the same printer to the second son when he entered college. The printer remains in the box, never opened. “These are the kids who are going to be making decisions about businesses,” he said, looking to the future. “They are going to be making IT decisions and they are used to doing things in a different way.”

Noting that today’s trends will continue to have an impact on the office technology industry going forward, Schmelz offered some fundamental advice. “The trends indicate what trends have indicated since trends have existed, which is: business changes,” he said. “Every day — every year — business changes. We just need to recognize those changes and adapt as best we can.”

As dealers seek to identify the best ways to adapt to the changing industry, Schmelz emphasized the importance of ensuring the continuation of a recurring services revenue model.

“The thing I love about recurring services revenue is the fact that it is predictable and consistent,” he said. “So, a dollar today in recurring service revenue is a dollar next month and the following month through the life of the contract.”

Keeping the need for recurring services revenues in mind, Schmelz suggested the basis of several alternative business models for dealers to consider: managed print services, managed IT services and the cloud. He also emphasized that there are others in the marketplace pursuing these models.

“Managed IT service providers [MSPs] are looking for additional sources of revenue and wanting to grow their businesses,” he said. “They are increasingly looking at managed print services. So, if you have a managed print customer and there is a provider of managed IT services, there is a chance they could be coming after that business.”

With MSPs and managed-print dealers potentially going after the same customers, Schmelz said he believes dealers have the advantage: “I think it is much easier for a managed print provider to take on the managed IT services piece of the business than the inverse.” The reason, he said: MSPs lack experience and expertise in such areas as car stock, parts inventory and pricing.

Dealers considering changing or augmenting their business models should carefully consider at least four factors in order to make the right decision, Schmelz advised: the dealer’s exit strategy; current customer relationships; local competition; and access to both capital and talent. “When you are making business decisions, I would encourage you to stick to the facts,” he said. “What are the facts about your business?” n —Brent Hoskins www.offi cetechnol ogymag.com | Se p te mb e r 2013 | 17

BTA West Sept 13.indd 2

8/29/13 4:46 PM

Pursuing Managed Services Are you considering buying an IT company? by: Mitch Morgan & Chris Ryne, Growth Achievement Partners

M

any dealers are attracted to the managed IT services business for a variety of reasons. The reasons include: an adjacent growth market, increased revenue with current and new clients, and the recurring revenue model.

Frankly, the last item — recurring revenue — is one of the more attractive components. The copier/MFP industry was built upon it. However, many dealers overlook the fact that recurring revenue, by its nature, builds slowly. The managed services business is not a business that generally brings large equipment takedowns that build top-line revenue quickly. This revenue is built one contract at a time; starting a managed services business does take some patience. The good news is, the revenue is “sticky” and a single managed services contract will grow over time through the sale of additional products and services within the contract.

Earlier in the year, we asked a group of companies entering the managed services business what their expectation for managed services as a percentage of total company revenue would be in three years. The median expectation was 30 percent, meaning $3 million for a $10 million dealership.

There is more than one way to get there.

Many dealers seek to acquire a company that is currently in the network services business to gain critical mass quickly. This approach allows an immediate entry and, hopefully, a client base. The best candidates for acquisition will have the people, processes and technologies that are traits of a high-performance managed services provider. The reality is that most IT companies are not all the way there, so even after acquisition there is much work to be done.

According to industry analysts, less than 40 percent of network services companies in the United States have fully transitioned to remote services and cloud computing-led business models and are still primarily in a reactive, service-

or project-based business model.

Growth Achievement Partners (GAP) has helped a number of companies successfully analyze, negotiate, acquire and integrate IT services companies into their dealerships to accelerate entry into the business. If this is a direction you are considering for entry into the market or if you are already in and want to increase your presence, the following are some of our observations and insights for guidance.

The Business Model When GAP and Continuum built and released the Business Model for Managed Services earlier this year, we did not fully anticipate the benefit it would bring dealers when assessing and valuing IT services businesses. The model is a composite financial model that assumes 100 managed services contracts. When done right, this number of contracts gets a dealer pretty close to the revenue target of 30 percent as outlined earlier.

By plugging the acquisition candidates’ financials into the model, it is easy to see where improvement needs to be made. The model includes income statement components, but goes much deeper into areas such as contracts and account expansion, margin and mix, head count and productivity, and service types. By comparing the target company with the composite of “what good looks like,” it is easy to see strengths, weaknesses and trends. Additionally, we have built a model component that provides a valuation template, taking these issues into consideration.

Culture & Team Fit In our (GAP’s) past, we participated in and then led the acquisition and integration of 35 technology services companies into a national office equipment provider, the integration of those companies into the bullpen and, ultimately, into the expectations, quotas and compensation plans of

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everyone involved. We were able to see, firsthand, how cultural integration impacts success. It is likely that the target company has a strong technical foundation with a limited sales and marketing orientation. On the face of it, bringing together technical resources with a salesdriven organization looks like the perfect marriage. However, this is not a natural fit for either side. Attention needs to be given to bringing disparate cultures together to create this synergy.

team often do not have a history of driving strategic growth within the busiBuilding an end-to-end ness. These businesses often command process — ­ from the initial a premium value, especially if they have sales appointment all the successfully transitioned to being manway through ongoing aged service providers. It is not uncomaccount reviews — will mon to see valuation based on top-line recurring revenue. The way to achieve a help you to achieve the positive return on invested capital is to growth you are seeking. significantly grow the business.

But what is the capability and desire of the management team to achieve this level of growth? Additionally, in spite of the fact that the majority of staff memIs There a vCIO? bers are highly technical, they often do not have client enIn many ways, the presence of a quality virtual CIO (vCIO) gagement processes in place to facilitate the growth you are is the most important factor in the growth of this business. seeking. Building an end-to-end process — from the initial The vCIO is a trusted adviser to your clients and plays a crit- sales appointment all the way through ongoing account reical role in the sales and delivery of managed services. In our views — will help you to achieve the growth you are seeking. experience, this role is critical to the success of the program. As described, this growth is needed to pay for the acquisition.

In short, this individual provides a “technology road map” We believe that the right acquisition, with the right manto your clients, acting as a consultant to the process. agement focus, cultural integration and implementation of When considering an acquisition, ask yourself if employ- business processes for growth, is a great formula for success ees of the company you are considering acquiring can lead for dealers seeking accelerated growth into this market. For a conversation with the owner of a small-to-medium-sized many dealers, it is the right answer. We have participated in business about applying technology to support the compa- a number of transactions that have resulted in a positive outny’s business goals. Often it is difficult to get inside the busi- come for all parties. By adhering to the initial components ness and interview potential vCIOs before the deal is struc- outlined in this article (before and after the transaction), your tured. However, there is a common behavioral profile for opportunity for success will be greatly improved. n these individuals and some consistency to the background Mitch Morgan (below left) is a partner at Growth Achievement that successful vCIOs have, so seek them out during the vetPartners. He founded the Connectivity Dealer Program from ting process to identify if they are part of the business today.

NIA in 1991. After his business was acquired by IKON Office Solutions in 1996, he led its Technology Services division.

Client Base In 2001, he formed the Professional Services division Does the existing client base fit the target market you for IKON. Morgan has been consulting with CEOs are seeking for these services? We tell our clients the target on strategy, operations, organizational development market is 10 to 100 users, with 20 to 50 being the sweet spot. and sales since 2005. He can be reached at Some smaller network services companies have a large pormitch@growthachievementpartners.com or (913) 269-7255. tion of their client base below this threshold.

Chris Ryne, a partner at Growth Achievement Partners, In addition, when reviewing an acquisition, dealers brings significant experience in driving growth should ensure that the existing pricing to the client fits and profitability, possessing a comprehensive understanding with the revenue and margin requirements that the dealer of the industry that includes traditional and emerging is seeking. (See “The Business Model” section earlier.) In markets from both a sales and operations perspective. short, does the company’s service pricing (for hourly as well His tenure includes 10 years with IKON, where he built and as recurring services) fit with where it needs to be for your led a successful professional services business unit business? It is often difficult to raise the price following acfrom startup to a wellquisition, but it can be done over time with proper planning. integrated team. He can be reached at chris@growth Management & Appetite for Growth achievementpartners.com or Many IT services companies are relatively small “lifestyle (913) 522-5454. businesses.” A typical network services company will have Visit www.growth fewer than 50 active accounts. The owner and management achievementpartners.com.

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Morgan Ryne Sept 13.indd 2

8/29/13 4:49 PM

Upsize Your Business While Maintaining Downsized Costs One of the hottest topics in the office technology environment today is how resellers, VARS and MSPs can capitalize on the rapidly growing managed IT services market opportunity — estimated at $118 billion in IT spend among small to medium-sized businesses.

This is where choosing the right technology partner can mean the difference between success and survival. A partner like Continuum, working closely with Growth Achievement Partners (GAP), co-authored an industry-first managed services business model that shows you how to scale your business without adding staff.

Upsize your business. Learn more about our fully integrated managed services platform and see why office product resellers are turning to Continuum for unprecedented levels of automation and efficiency that are not possible with master managed services providers. For more information, please contact us at sales@continuum.net or call (724) 720-9000.

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Unraveling 3D Printers Success rides on your desire, dedication & dollars by: Greg Gondek, Advanced Copy Technologies Inc.

T

here is so much buzz about 3D printers lately that everyone seems to ask me the same questions: “How do you get into it? And what does it take to be successful?” Actually, “3D” also refers to the formula you need — desire, dedication and dollars.

When we started the process two years ago, it was a little frustrating. We had done our research and homework and felt this was a good alternative product, since we already have MPS, software solutions and all of the other services our manufacturer partners are pushing as the only ways for a dealer to survive in the future apocalyptic world of a paperless society. However, used to dealing with our typical equipment manufacturers, we have found that what we are accustomed to is very different than what the world of 3D has to offer.

If you do not have the desire to pursue 3D, you may never make it much further than a meeting or two with a 3D manufacturer. They do not really understand our channel. Try asking them about training, marketing, equipment lead times or any of the things that a good dealer requires to meet a typical customer’s expectations; essentially, they have no responses.

This in no way is a dig at our supplier — which offers as much as any 3D manufacturer — but refers to the industry as a whole, based on our initial investigation of potential partners.

After a solid year of marketing 3D printers, we are lucky that our employees involved with the product category have the dedication to learn about a whole new world; a lot of our pre-conceived notions have been thrown out the window.

3D is a different animal with different players throughout the sales cycle. Just when you think a deal is closed, that is where the real work starts. Engineers do not buy anything quickly, and the dedication and desire need to be peppered with knowledge and patience.

There are 55,000 different materials that can be used in additive manufacturing (3D printing); we have had engineers wanting to know about the specific properties of dozens of materials. Unfortunately, finding the answers to their questions is like learning a new language; this is nothing like speeds and feeds. Fortunately, we are now at a point

where we have a good comfort level with our product knowledge and our ability to research many different technical questions, plus the expertise to compete with some of the seasoned resellers.

Additive manufacturing has actually been around for more than 20 years. As a small niche market, it was off the radar while we were all fighting to hit our latest targets. When 3D Systems, our supplier, said we were the first copier/MFP company to carry their product line, we were excited about the prospect of having a market all to ourselves. We knew there were a few other companies selling different 3D printer brands, but we thought, “We are copier guys; we will blow them away with our ‘turn-over-every-stone’ sales reps.” The problem is, it takes a lot more than finding 20 prospects to generate a sale. 3D prospects are coming out of the woodwork, and separating the 99 tire-kickers from the one real prospect is a job in and of itself.

The other resellers in our market are also more formidable than we expected. Granted, they are not like the 22 copier/ MFP dealerships we compete with every day, but without the knowledge level to deal on a more technical level, you can be the odd man out with just one wrong answer or misstep. So, having a dedicated staff with the desire to succeed — knowing there is a lot of hard work and a long learning curve to being proficient with 3D — is critical to being successful.

Now that we have some numbers history to go on, we can really begin to forecast the return on our investment.

3D takes dollars to do it right and, in hindsight, I am lucky that our entire organization is devoted to only doing everything the right way and not cutting corners. I can think of a dozen reasons why we could have failed miserably if we had treated 3D like just any other line.

We are seeing that a close cycle on anything other than hobbyist equipment seems to be six to nine months. The typical signing of a deal as soon as the prospect says, “This looks good,” just does not happen. I cannot stress enough that the expertise in sales and service is critical before bringing something so different to market. We had inventory in

22 | w­ w w. o f f ic et ec hno log y m a g.c om | S e p t e m b e r 2 0 1 3

Gondek Sept 13.indd 1

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to tell very quickly if you are not an exthe warehouse for six months before we pert. Unlike all of the nightmares we launched 3D and, even then, we might Plan on investing heavily have seen with dealers selling MPS and have been a few months early. in a showroom, demo software when they really do not know We built a separate showroom and I equipment and what they are doing, the 3D client is on would highly recommend doing the same, dedicated service and a whole different level and will put you as there are some potential issues with sales staff, and then to the test. Sometimes, while listening material dust. Contaminating that proto these engineers, I think I am actually duction color copier/MFP is the last thing make the commitment on a different planet. If 3D is something you want to do. Our 3D showroom does get to become a 3D expert. you really want to do, then do yourself all of the action, no matter what a client or a favor and commit to doing it right. n prospect is there to see. It is a very visual sale, and we spent our first six months before launch building Greg Gondek is president of Advanced Copy Technologies Inc., located in Cromwell, Conn. He has held this position for the shelves full of samples and getting our sales and service empast 14 years, during which the company has grown an ployees comfortable with all aspects of the equipment. average of 20 percent per year. Prior to this I firmly believe that 3D printers will be a good additional position, Gondek was the New England product line for us. But it is not a product that you can just regional manager overseeing the direct sign up to sell and throw against the wall — it will never sales operations for an office equipment stick. Plan on investing heavily in a showroom, demo equipmanufacturer. He can be reached at ment and dedicated service and sales staff, and then make greg@advancedcopy.com or (860) 632-9294. the commitment to become a 3D expert. The high-end Visit www.advancedcopy.com. prospects and current users of 3D equipment will be able

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COURTS & CAPITOLS

BTA District Events Providing information, resources & guidance by: Robert C. Goldberg, General Counsel for the Business Technology Association

O

ne of the most beneficial investments of my time is attending BTA’s district events. I just returned from the Capture the Magic event, hosted by BTA West in Las Vegas, and I look forward to presenting at the Sept. 26-27 Grand Slam event, hosted by BTA East in Baltimore, Md. By interacting with dealers and suppliers, my knowledge of the industry and its trends grows significantly. It is one thing to hear the legal issues of dealers on a daily basis, but it is another to learn the directions and the opportunities that exist.

I have worked with independent dealers as they transitioned from calculators to typewriters to word processors, and from analog to digital copiers — and throw in printers and color along the way. With each new technology, dealers have met the challenges and have prospered. In just the past few months, there has been a migration from managed print services to managed IT services to simply managed services.

Along with this new nomenclature there has been a new financial model introduced as well. The technology is more demanding and the pricing is less exact, but dealers are adapting and prospering. While the technology grows, so does the dealer’s knowledge and expertise. BTA’s district events provide valuable industry information, suggestions, resources and guidance in this changing environment.

What have I learned along the way? The most important lesson is that the independent dealer remains irreplaceable.

Regardless of the brand name, office technology still requires service and support — the industry essentials where dealers have and continue to excel. And it is now even easier to monitor equipment and anticipate problems with industry partners providing software for that purpose.

At the Capture the Magic event, Mitch Morgan of Growth Achievement Partners advised dealers they could enter the services business by building, buying or partnering. I have seen that building a dealer’s IT expertise is often a difficult process. IT technicians are not the same species as copier technicians. The purchase of IT companies has been very successful for many independent dealers, as well as the IT companies they have purchased. Partnering seems the path of least resistance; GreatAmerica’s Collabrance program received significant interest at the Capture the Magic event.

I have learned that the name of the hardware you sell is not nearly as important as your own company name. Managed services brings results to end users; it does not matter if your bat is 30 or 35 ounces as long as it produces runs. Features are

no longer emphasized in the sales cycle; it is the process and savings that are highlighted. Independent dealers are becoming trusted partners to their end users as larger portions of the end-users’ office automation are taken over by dealers.

It is essential that every dealer have an action plan — or, as I have previously suggested — a business plan. Talking is not planning. If a dealer has not set a course for his (or her) business, he is reacting to changes in lieu of planning for them.

Finding a niche with an application, vertical market or solution is more profitable than the endless cycle of beating the competition. Differentiation further insulates you from the price competition that lowers profits and eliminates funds for business development. BTA’s district events have provided the knowledge and tools necessary for change and advancement.

End users prefer to work with a single company for their office technology needs. BTA dealers, with their service and support expertise, meet that need better than any other industry segment. Become the one-stop solution by learning about the best practices, willing partners and proven methods of those that transitioned before you.

I look forward to seeing you in my session, “All Hits & No Errors = Dealer Success,” at the Grand Slam event in Baltimore. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com.

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Goldberg Sept 13.indd 1

8/29/13 1:16 PM

BTA Highlights BTA would like to welcome the following new members to the association:

Dealer Members Danhew Enterprises, Torrance, CA Future Print Services, Reno, NV Illinois Business Systems, Downers Grove, IL Innovative Office Systems, Bossier City, LA Major Business Machines, Greenville, SC ProCopy Office Solutions, Tempe, AZ Rothwell Document Solutions, West Chester, PA Schwegman’s Office City, Batesville, AR World Trade Copiers, Brooklyn, NY Service Associate Members OnePak, Orleans, MA Vendor Associate Members OES Technology, Walnut, CA Q2 LLC, Burnsville, MN Roxbury Technology, Hyde Park, MA Synnex Corp., Greenville, SC For full contact information of these new members, visit www.bta.org.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space.

BTA Vendor Associate Member Roxbury Technology Corp. (RTC) is an eco-friendly, full-service remanufacturer and distributor of recycled toner and ink cartridges. RTC is committed to providing sustainable printing solutions that are good for the environment, the economy and the customer’s bottom line. RTC has been a key diversity partner to Staples Inc. since 1999 and, today, RTC is its sole supplier of the newly launched brand of ink and toner products, Dps by Staples. Additionally, RTC has a broad representation of direct customers, including hospital and university consortiums, that have become strategic partners as well. www.roxburytechnology.com

BTA General Counsel Robert Goldberg has more than 35 years of industry experience.

He provides members with no-fee advice and guidance on a diverse range of topics. He can evaluate legal needs, provide advice and guidance, review and analyze reseller contracts and serve as a third party to help resolve business disputes. BTA members also can download sample legal documents that encompass several categories from the BTA website. Visit www.bta.org/Legal for more information.

BTA Service Associate Member OnePak is a cloudbased aggregator and integrator of the logistics services needed to facilitate equipment returns.

OnePak provides a carrier-neutral, destinationagnostic Web platform to navigate the global network of reverse logistics services. Specializing in handling off-lease, end-of-life, repair-needed or otherwise “not new” equipment, OnePak provides special handling, packing, tracking and reporting for leasing companies, OEMs, equipment lessees, remarketers and recyclers, and anyone who needs to ship something “back.” www.onepak.com

For information on BTA member benefits, visit www.bta.org/MemberBenefits.

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

BTA Legal Services

www.offi cetechnol ogymag.com | Se p te mb e r 2013 | 27

Highlights Sept 13.indd 1

8/28/13 12:59 PM

PRINCIPAL ISSUES

Media Briefing: Canon Manufacturer hosts editors & analysts Aug. 8 by: Brent Hoskins, Office Technology Magazine

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ith the goal, in part, of showcasing its new headquarters, reporting on the company’s sales performance and sharing details on its strategic direction, Canon U.S.A. Inc. hosted office technology industry editors and analysts on Aug. 8 in Melville, N.Y. The meeting was held at the $500 million, 700,000-square-foot Canon Americas Headquarters; the grand opening was July 19.

“When we officially opened this building a few weeks ago, it was the culmination of probably a 25-year dream,” said Seymour Liebman, executive vice president, chief administrative officer and general counsel at Canon U.S.A., as he welcomed the meeting’s attendees. “It wasn’t easy finding the space. It wasn’t easy to build this building; it took three years to build.

But, it was definitely worth the wait.”

Liebman highlighted some of the noteworthy features of the building. “Our new headquarters reflects our belief in environmentally responsible development,” he explained. “We have such elements as daylight harvesting, drought-resistant vegetation and we also have electric car charging stations in our garages. The garages were quite expensive, but otherwise a big part of this land would have been covered with blacktop. So, we made the investment to retain this campus-like setting.”

The 52-acre campus includes eight acres of treed land with paved trails where employees can walk during the lunch hour.

“We designed this building as a place for our employees to grow and thrive and really enjoy the facility,” Liebman said.

“We spent a lot of money and a lot of time designing this facility. We hope that it will be our home for a very long time.”

The meeting featured presentations by several executives, including Canon U.S.A. President and CEO Joe Adachi, who took the opportunity to report on the company’s global financial results. “For the first half of 2013, sales revenues were approximately $18 billion — $5.2 billion in all of Canon Americas, including South America, $5.5 billion generated by the European group, $4 billion in Asia and Oceania, and $3.4 billion in the Japanese market,” he said. “By business unit, almost $10 billion was generated by the office machine group, $6.9 billion by the consumer group and $1.6 billion by the industrial group.”

Adachi noted that Canon spends about 7 to 8 percent of revenues on research and development. “This is very important for us,” he said. “In the last five years we have always been among the top four in the U.S. patent market. Last year, IBM was first, Samsung was second and Canon was third. We are not big at all among the top 10 [global] companies, but over the last 20 years,

Clockwise from above: Canon U.S.A. Inc.’s new headquarters; Sam Yoshida; Joe Adachi; and Seymour Liebman. in terms of the number of U.S. patents, we are number two.”

Sam Yoshida, vice president and general manager of marketing for Business Imaging Solutions at Canon U.S.A., was also among the presenters. In his presentation, he provided a look at the strategies for Canon’s office equipment expansion going forward. They are: drive a consistent architecture approach across the product portfolio; extend the product portfolio, particularly in the A4 space; enhance platform tools, driving down the cost of implementation, management and service delivery; and enhance integration of technology with cloud, mobile and business process workflows.

Canon’s strides in pursuing its growth strategies have ensured greater market share for the company, Yoshida said. “I’m happy to report that we are commanding a top market leadership share,” he said. “If I use the Gartner results for last year, Canon took 25 percent market share in the A3 MFP space, which is a 2 percent growth. Based upon our year-to-date results this year, I believe we can further increase that number.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040.

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PRINCIPAL ISSUES

Collision Course Dealers eyeing managed services, MSPs eyeing MPS by: Mike Lamothe, Office Document Consulting Inc.

I

n my most recent article (“Breaking it Down,” August 2013 Office Technology), I addressed those of you who want to offer MPS, but have not made the transition yet. I also provided you some suggestions on how to simplify the process. If you have read any of my other articles, you are probably saying, “Enough already.

We get it.”

I totally understand how some of you may feel, but much of what I have been saying for the past three years became more apparent at CompTIA’s July 29-31 ChannelCon in Orlando, Fla. The message was rather clear: There will be a collision between managed print services (MPS) providers and managed services providers (MSPs).

You might be asking yourself: “How does that affect me?” Take a look at the top diagram on the right and you might get a better understanding of the significance. Today, in many cases, your customer is buying from multiple channels and the reality is (and I have said this before) all four channels have a vested interest in the customer. If you are not prepared to take a dominant position, you could end up being the odd man out.

But back to CompTIA’s ChannelCon. The conference floor was packed with a significant number of value-added resellers (VARs ­— printer and software resellers), MSPs and IT service providers who were very interested in securing their customer bases. Many were searching for answers to the proverbial questions: “What is MPS?” and “What do I need to do to begin offering these services to my customers?”

For the record, up until now, many of these companies have said they have no interest in “crossing the road.” But the reality of how to best secure their customer bases is pushing them in that direction. On the other side, there was a group of MPS providers in attendance who had similar questions. The only difference was they were asking about MSPs, focusing on extending their services inside current base customers. The bottom diagram on the right illustrates the optimal state, bringing MPS and MSP together.

Another factor that is driving this convergence is the customer. If you review CIO key initiatives over the last couple of years, much of the focus has been on eliminating more operational tasks and focusing on value-added services that will

help drive profitable growth.

I reviewed the top CIO priorities for the last three years (2011, 2012 and 2013) and mobile technology, business intelligence and cloud computing all appear. The only change is that, in 2013, the number-one priority is correcting the 80/20 factor. That is, 80 percent of IT’s budget focuses on operational costs and 20 percent focuses on improving technologies that drive value to the bottom line. CIOs want that reversed; their www.offi cetechnol ogymag.com | Se p te mb e r 2013 | 29

Lamothe Sept 13.indd 1

8/30/13 9:43 AM

Now that we know where all this is headroles within the executive hierarchy deed, I hope what I am saying makes sense. pend on it. ... Managed print The good news is, BTA dealers are in a The relevance is that managed print reremoves a portion of the much better position to evolve into MPS moves a portion of the operational cost operational cost from providers/MSPs, due to the extensive infrom IT and helps to redirect those reIT and helps to redirect frastructures they have in place. For the sources to more effective business-relatthose resources to more record, I will continue harping on the fact ed improvements. MSP managed services that you need to transition your business (IT-related tasks like cloud computing, effective business-related so that you are in a position to take advanmanaging desktops, laptops, servers and improvements. tage of what our customers will be asking other related applications) provide an adfor — if they are not already. n ditional reduction in cost, allowing interMike Lamothe is president of nal resources to focus on the core business.

Office Document Consulting Inc. (ODC).

By the way, do not be surprised if mobile applications are next.

ODC specializes in MPS strategies, Our industry is changing before our eyes, driven by the dedeveloping software tools and implementing mand of our customers and the need to change many of the MPS programs at dealerships trends we have witnessed over the last couple of years. These across North America. trends include everything from equipment commoditization He can be reached at to declining gross profits, to little to no profit on equipment ml@officedocumentconsulting.com. sales and, finally, to erosion of service, which, for the most Visit www.officedocumentconsulting.com. part, has been the foundation of our businesses for years.

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Lamothe Sept 13.indd 2

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