Behind the rollout of its newly enhanced partner program, Xerox is now focusing on helping solution providers make the jump to managed services and recurring revenue models.
The vendor introduced its unified, global partner program Tuesday, and now the company is focused on promoting recurring revenue models that will bring channel partners lucrative benefits along with the integration services around print products. Today, printing products can no longer just sit idly, said Toni Clayton-Hine, vice president of channel and global marketing at Xerox, and that's exactly where managed services partners will come in.
"Everybody considers it obvious to manage networking, infrastructure and end-point devices, but not as many people think about it from the printing perspective," said Clayton-Hine. "However, end customers are saying enough is enough -- we want you to manage the whole thing. It’s the simple fact that customers want one source of management of an entire infrastructure."
Having a more personalized solution tied into a managed services opportunity will help to capture recurring revenue, especially around device management, said Clayton-Hine. "Seeing the device is one thing, but imagine if [partners] can charge for making sure it's secure, never out of toner, and that toner is shipped to you, and it all happens in a managed services way," said Clayton-Hine. "It makes it easier, simple and expands a partner's source of revenue by connecting what they already sell today and adding that print component and a recurring service."
Recurring revenue services is extremely profitable for partners, especially around post-sales opportunities, according to Xerox.
"We're not talking two or three points -- we're talking about 60 to 70 points a margin on post-sales supplies, and just in the SMB market alone, it's a $35 billion opportunity," said Clayton-Hine. "There is a lot of money to be made, especially in post-sales services because it's a contract."
Xerox will further enable MPS (managed print service) partners through tools like the company's new Personalized Application Builder, as well as educating and training around developing recurring revenue models, said Clayton-Hine.
"Our managed print services offering is the largest offering to manage Xerox and non-Xerox devices," she said. "[Now there's] one contract to manage all Xerox, Canon and HP [print products], see it and have recurring services for supplies and maintenance. There isn’t a need for 15 contracts, and that's a powerful message."
Gunner Fransson, CEO of solution provider Xllnc, a Xerox partner based in Stockholm, is looking forward to the benefits from the new partner program and its recurring revenue model education.
"I really think the best part is that partners can start talking to other Xerox partners, and the program will give us a chance to interact, sell and get new solutions to the end customer," said Fransson. "From a technical perspective, now we have more developmental tools and the recurring revenue piece will allow us to profit from managing services for our customers."
Clayton-Hine said recruiting and enabling MPS partners and solution providers will be a crucial goal for Xerox this year,
"Our goal is about helping more print-centric partners have a more solution-oriented approach that has our brands on it," she said. "We want to make sure they retain and grow their customers and have the ability to easily close deals and manage and monitor devices. When they grow, we grow."
PUBLISHED MARCH 19, 2014