Why Print Matters! ? Gerry SkipwithVice President – ServicesCompugenSeptember 23, 2010

Was on a Mission

Toronto to Montreal

7 days

15 km run

90-100 km bike

$100,000+ for Canada Company

Scholarships / camp for the children of fallen soldiers

CompTIA

CompTIA

Solution Providers

Society

Why Print Matters!

Managed Print Services Association +1000 members in less than 1 year

2010 conference – 300+ engaged attendees

• 100 attendees in 2009 (Inaugural)

Growing Print CommunityCompTIA

Expanded Industry Eco System CompTIA

Ancillary

Consultants/ Analysts

Software

3rd Party Supplies

Technology Convergence

Office Copy

CompTIA

FAX

Commercial Copy & Print

Office Print / MFP

Company X

Print Decision Making ShiftsCompTIA

IT/MISPurchasing / Procurement Facilities

Management

Com

pany

XCompTIA

IT/MIS

Operations / Procurement

Facilities Management

68%

20%

10%3%

Other

Print Decision Makers

Companies are Struggling

IDC says 1-3% of Revenue spent on print

All aspects of content creation, management and print

0.5% on hard print costs Content CreationManagementPrinting

Procurement/AdminNetwork InfrastructureIT SupportEqpt, Supplies, Mtce

Solution Providers

Poor supplies management

Solution Providers

Companies are Struggling

Solution Providers

• Low device utilization• Model sprawl

Customers are Struggling

Proliferation of personal printers

Solution Providers

Customers are Struggling

Business OpportunitySolution Providers

2006 2007 2008 2009 2010 2011 2012 2013 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Market Revenue

Billi

ons

Includes hardware, supplies, and services for distributed market.

Source: Photizo Group 2009 MPS Market Size, Share, and Forecast Report.

Managed Print Services

Traditional “Purchase” Model

MPS Defined

Managed print services is the active management and optimization of document output devices and related business processes

Solution Providers

Different needs

Top 4 Contract Items

Monitoring of device utilization 66%

Assessment 61%

Device installation 56%

Help desk services 56%

Bottom 4 Contract Items

Physically moving devices to new locations 39%

Number of service incidents 38%

Same day response time 36%

Average response time per incidence 35%

Photizo Group, 2009

Solution Providers

Resulting In A New Vendor Business Model

Pre-MPS Avg.

Year 1 Year 2 Year 3 Year 4 Year 5 -

100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000

0%

10%

20%

30%

40%

50%

60%

Hardware Margin Supplies + Services Margin Net Margin %

Marg

in (

%)

Source: Photizo Group 2010 Global MPS Advisory Service

Solution Providers

Print is Great

Arguably; Key foundation of education and spread of knowledge

Fostered the spread of religion

Foundation of all legal systems

Low cost print aided growth of modern democracy

Society

Education then, beyond all other devices of human origin, is the great equalizer of the conditions of men, the balance-wheel of the social machinery

Horace Mann

Some history 2400 B.C.: Papyrus appeared in Egypt

618 to 906: Carved wooden blocks for multiple transfers

1309: Europeans first make paper

1456: Gutenberg prints the Bible

1800: Iron printing presses invented

1870: Paper is now mass-manufactured from wood pulp

1891: Printing presses can now print and fold 90,000 4-page papers an hour

1938: Chester Carlson invented electrophotography called Xerox

1953: high-speed printer developed by Remington-Rand

1971: original laser printer called EARS was developed by Xerox

1976: HP invented inkjet printer

1988: HP released the DeskJet inkjet printer, priced at $1000

1992: HP released the LaserJet 4, the first 600 by 600 dpi laser printer

Society

Print Facts

40Percent of global wood harvest dedicated to paper

5.4 million

Tons of paper consumed annually in U.S.

20 millionAcres of trees logged annually (Newfoundland)

10,000

Pages printed by the average US office worker

757 Return trips to the moon using US annual office copy paper

Society

Paper Consumption

Energy Consumption

Carbon Output

Solid Waste

Environmental impacts

• 200m tons of hazardous substances into the air & water

• 3rd largest user of industrial water• 4th largest industrial emitter of GHG• 4th largest industrial user of energy

Paper

• 1 gallon of oil to make a new toner cartridge

• 8 cartridges / second are thrown away in the US

• In NA, 350m cartridges into landfills annually

• Discarded cartridge adds 2.5 lbs of solid waste

• 70% of world’s printer cartridges thrown out

• World’s annual cartridges circle the earth 3 times

Toner Cartridges

Society

Print is a great privilege that brings great responsibility

Gaining the full benefits of corporate print in an environmentally responsible manner