Can Staples, OfficeMax, and Office Depot Really Play at MPS?

One of the most challenging things in today’s market is the collision of markets. This trend started many years back with HP trying to play in the copier space, Dell moving into the printer space or the small mom-and-pop printer servicing company suddenly appearing as a major threat in your backyard.

But not until recently have so many vectors of attack appeared on your radar. Competitors light up  your radar like fireflies in the summer at twilight and the competitive differentiators have fluttered away like moths after you turn off your porch light.

Some interesting players in the managed print services (MPS) space are the big office supply chains: Staples, OfficeMax and Office Depot. In a recent LinkedIn discussion regarding some potential changes in IKON’s selling direction, Jason Aramoonie made an astute observation:

“… an advantage that a Staples has over a box manufacturer is the ability to produce outsourced print (e.g. training manuals, HR new hire packets, stationary, print on demand docs, etc.) in their retail centers and to include this as part of the MPS offering.”

While most people would snub their noses at this type of new player, all providers are seeking to reinvent themselves.

This is the key strength and leverage point for these players! In effect, these types of providers offer the customer a Software-as-a-Service-equivalent (SaaS) in the form of outsourced, production-quality services. While the per transaction cost is naturally higher, there is no upfront investment in the large capacity, production-quality devices, the hassle of upkeep, the hassle of power provisioning, and the benefit of floor space reclamation!

Hmmm… SaaS, virtualization, data centers and outsourced print…

These leverage points speak to an underlying migration to reach utilization saturation, thus bringing the overall cost per transaction down to a level that quite possibly could end around where in-sourced transactions might have been. Now we are no longer talking concepts of mass production at the factory level, but at the information level!

After all, people only buy the hardware, software and training to get a result. If you “rent” them the road to drive on, the car to drive in, and the driver to drive them there – isn’t it the same beach to lay on (and the same sunburn)?

Ken Stewart’s website, ChangeForge, focuses on the collision between the constantly changing worlds of business and technology in an information-centric world. Ken serves on the board of the new Managed Print Services Association, an international industry organization seeking worldwide best practices for the managed print services industry. He is also the founder of Seeking the Son. He is always interested in connecting with you.