The VAR Guy is learning at the Managed Print Services Conference that MPS knows no boundaries. Take the business model of Auxilio, which focuses entirely on the healthcare vertical by acting as a MPS provider to hospitals. CEO Joseph Flynn sat down with The VAR Guy to offer a deep dive into MPS and share some advice on the space. The VAR Guy loves hearing things straight from the horse’s mouth, so read on for some interesting perspective.
First, The VAR Guy wanted to know why managed print services don’t generate the buzz that other managed services do.
“It’s the low-end of the totem pole,” said Flynn. “What [big vendors] end up doing is going up to the desktop, and then they stop. They assume that there’s already a [MPS] relationship. They’re not handling the print process [but] it’s a great opportunity. It’s crazy that they don’t.”
Is there a boundary, then, that MSPs and VARs need to break through to provide MPS? The VAR Guy asked.
“Yes,” said Flynn, “but it’s an artificial boundary.” Flynn said Auxilio‘s success is because the company is made up of “high-end people in a low-end world.” “Print’s a problem, but not a big problem. It’s not a threat to the network [so] it’s not [viewed as] a problem that needs to be solved. But big IT service providers don’t want to go there.” Sometimes customers don’t even like to admit they have a printer problem, which can often be a hurdle as well. If a customer isn’t turned on to a sale, a sale can’t be made.
The VAR Guy wondered: What’s the secret sauce in that success? Where does the revenue come from?
Flynn said that part of it comes from Auxilio’s vendor-neutral approach, allowing for a best-in-class offering at all times, but there is more. “We look at volume price and wrap our service into that. Every expense related to product of print in a hospital is charged in our rate, all wrapped together. No minimums.” But the real opportunity is in institutions or organizations with staggering printing requirements. “Half a million or 750,000 pages a month. That’s the threshold,” said Flynn, “Below that, there are MPS opportunities, but not with the same impact.”
Flynn noted also there are often different definitions of what managed print services are. Auxilio’s definition, he said, is based on his company’s success as being the company that’s “on it” at all times. “Without people, you can’t manage the process,” he said, adding that simply having a remote web-admin to check on a few printer statuses isn’t enough. But he also noted it’s possible to oversell a company on a solution, which creates an inefficient use of resources and money. Again, this is mitigated by having real people connecting with the needs of the institution.
Definitely information for The VAR Guy to chew on. As far as Auxilio, “We’re sitting on top of an iceberg and only scratching the surface,” Flynn said — there are 5,700 hospitals in the United States, and Auxilio is just gettin’ started.
Flynn had a few words of wisdom for aspiring managed print services MSPs or VARs: “Think vertical. There are lots of vertical markets that are underserved. We’ve seen success with it. But, present yourself as someone provides services to [the MPS] industry. Stay focused and show that you love and know the vertical [you serve].”
http://www.thevarguy.com/2011/...cusing-on-verticals/
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