50 Percent Reseller Attrition by 2013, Photizo Predicts

How important is managed print services (MPS) to your business if you are currently a company who specializes in document output? Is MPS a fad, or a get rich quick scheme? Is MPS a platform to simply sell more hardware?

While predictions at the start of any new year abound, those who keep their ear closest to the heartbeat of an industry seem to have an ability to pull what most might see as wisps of data into an actionable direction – predicting a stark shift in existing paradigms.

Leaders in this new paradigm will see an opportunity while followers will be paralyzed by the inability to cope with change.

Pulling back the curtain:

As a benefit of being a member of the MPSA, I registered for a free web event presented by the Photizo Group. CEO and Founder, Ed Crowley, outlined what the group’s market research suggested what both the present- and future-state of this industry may look like in just a few short years:

• MPS moves from being a ‘enterprise focus’ to a mainstream offering, including SMB’s.
• Due to the evolution of software technology and third party infrastructure, efficient providers will be able to provide MPS to even the smallest of businesses.
• The competitive focus will shift from developing a basic MPS market strategy to planning for and realizing operational efficiency on a local, regional, and global scale.

So far, nothing terribly earth shattering? … Well, this should prove a stark wake up call,

• By 2013, 50% of the resellers in North America will be acquired or go out of business due in a large part to their inability to be successful with MPS.

Are you awake now?

According to Photizo:

• Market evolution will accelerate.
• Staying ahead of the competition requires market intelligence, well defined strategy, and flawless execution.
• The opportunity is to establish a significant market position which will provide long term revenue and profitability.

As I’ve said time and again, the tide has turned. It is the natural order that change in the environment requires evolution or extinction. I suggest managed services to be an evolution necessary for survival – at least if you intend to maintain the profit margins and market share you have come to enjoy.

As the saying goes, “No man is an island.”  No industry is exempt from being impacted  by the movements of another. Technology and innovation continue to drive consumer expectations, while maturation in need coupled with the quickened pace of information delivery increase end-user demand.

You have to choose whether you want to ride the wave or go down with the ship.

Let me know what you are doing to position for your survival and success. You can connect with me here, or look me up at the 2010 MPS Conference.

Image courtesy of silverman.

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.