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Last February SCC decided to add managed print services to its portfolio as part of its drive to increase the speed of its move away from the traditional reseller business to one deriving revenues from services.
Since SCC purchased M2 the managed print side has grown and delivered on the numbers and supported the shift in the business model to the point where SCC now makes the bulk of its revenues from managed services.
In its most recent results for the year ended March 2015 SCC reported services up by 22% year-on-year to £159m, responsible for 24% of total revenues. Gross profits were also up by 15% with the share of that coming from services increasing by 11% in the fiscal year to account for 55% overall.
Money has also been spent to bulk up the capabilities of M2 with £1.5m going into expanding the salesforce and its regional office network.
The latest proof that the decision to move into managed print was a wise one has come with the contract win to supply MPS across public sector organisations in Devon thanks to a deal with Devon County Council.
The channel player won tenders to provide and maintain 550 devices and to become the preferred MPS supplier to the local authority, education and healthcare organisations across the region.
John Taylor, CEO of M2, said of the award: “Organisations are realising the value of managed print in driving down cost, waste, and risk. With the growing technical, complex nature of managed print, finding quality, service excellence, and a trusted partner is essential."
“In the case of Devon County Council, SCC had to solve the main challenges around managing a multi-vendor fleet of MFD’s and printers, requiring pedigree, local & national capability, and a strong overall MPS business," he added.
Although MPS has been viewed as a major channel opportunity it has only been in the last 18 months that most of the vendors have formalised programmes to drive reseller participation in delivering a services approach to printing.
Research from analyst house Quocirca this summer highlighted a buoyant market with 51% of organisations already using or planning to adopt MPS as part of their plans to tackle escalating print costs.
Quocirca's report into the MPS landscape for 2015 found that those customers who had adopted the technology saved on average 26% on the cost of printing over the course of a year.