Printing & Documentation Special by Bhupinder Sharma

Vol 02 issue 05 January 2010 | Rs. 50

S E L ECT

S E R IES

PRINTING & DOCUMENTATION SPECIAL The segment is abuzz with a host of new technologies, products, consumables and outsourced services in the works

Laser Printers

Growth will be driven by speed and lower cost PAGE 10

Document Management Vendors and partners are targeting medium enterprises PAGE 18

Inkjets

Propelled by multifunctionality and upcountry markets PAGE 14

editorial

The Printer Is Not Out

sanjay.gupta@9dot9.in

Instead of making printers extinct, the Internet has put more printing power into the hands of users.

hen French writer Alphonse Karr said, ‘The more things change, the more they remain the same,’ printers and papers were probably not on his mind. But his famous remark envelops them just as well as it does most things in life. Not very long back, many industry experts were predicting the death of printers and printing as we know it – office printing at least. Why, they argued, would people want to print when most documents were going to be available on the Web? Today, a lot of things indeed are available online, but then, so are the various printer models to choose from on e-commerce sites! Far from vamoosing from our office bays, the machines now come in more shapes and sizes – and constitute a bigger business for vendors and dealers than before. And that’s not all: the way businesses buy printers, and create and manage their documentation work today has become more complicated than it used to be. Ironically, the Internet, instead of making printers extinct, has put more power into the hands of users as to how, when and if they want their printouts to be taken. The multiple sites that have become the leitmotif of existence in a corporate worker’s life – from company intranet and search engines to social and professional networking and blogging platforms

– store a growing tapestry of documents, presentations, pictures and other data that seem indispensable to their existence. How can they cope with it all? Not to worry: today’s printing and documentation solutions provide an increasingly sophisticated way to access, retrieve, manage and, of course, print what users must print (yes, they do send and receive those end-of-email environment-friendly messages about avoiding printing but still...) The going may still be good, but there’s a caveat. We may have reached or will soon reach a saturation level in terms of numbers of printers selling each year, particularly in big cities. So growth will come from deeper channel penetration into upcountry markets or from domains such as managed printing, consumables and documentation solutions. Moving the customers from black-and-white to more colour printing is another potential opportunity. Some things may be changing once more. Let’s wait and see what remains the same.

SANJAY GUPTA Editor Digit Channel Connect

sounding board sounding board Ranjan Chopra, Managing Director, Team Computers: “Managed Print Services (MPS) help enterprises in managing the entire printing infrastructure optimally.” BB Somani, CEO, Abbee Consumables and Peripherals: “The consumables segment is a highly fragmented and unorganised market as one can find any Tom, Dick and Harry sitting to refill ink cartridges at 1/10th the original cartridge’s cost.”

Write to the Editor E-mail: editor@digitchannelconnect.com Snail Mail: The Editor, Digit Channel Connect, K-40, Connaught Circus, New Delhi 110 001

Narendra Dhanuka, Galaxy Computech: “The volume of laser sales is certainly growing as laser technology is becoming increasingly affordable. Besides monochrome, which still governs the laser market in terms of the units sold, the entry level colour market is likely to grow considerably this year among the SMB and corporate users.” n

DIGIT CHANNEL CONNECT

JANUARY 2010

contents

Printing & Documentation

SPECIAL

VOL 02 ISSUE 05 | JANUARY 2010

Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh EDITORIAL Editor: Sanjay Gupta Sr. Correspondents: Charu Khera (Delhi), Soma Tah (Mumbai) DESIGN Sr. Creative Director: Jayan K Narayanan Art Director: Binesh Sreedharan Associate Art Director: Anil VK Manager Design: Chander Shekhar Sr. Visualisers: PC Anoop, Santosh Kushwaha Sr. Designers: Prasanth TR & Anil T Photographer: Jiten Gandhi BRAND COMMUNICATION Product Manager: Ankur Agarwal

MULTIPLE ADVANTAGE

17 10

With lasers offering faster printing at increasingly lower acquisition costs, users are gravitating towards them

“Canon intends to bring a range of WiFi printers in 2010” VP SAJEEVAN, DIRECTOR, CONSUMER SYSTEM PRODUCTS, CANON INDIA

INKJETS

PRODUCTION & LOGISTICS Sr. GM Operations: Shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP Singh, Mohd. Ansari, Shashi Shekhar Singh

VIPIN TUTEJA, EXECUTIVE DIRECTOR - MARKETING AND BUSINESS SUPPORT, XEROX INDIA

The Next Phase of Growth

FOCUSED ON GROWTH

CUSTOMER ORIENTATION

“Digital Printing will be the focus area for most”

With demand for all-inone machines increasing among companies, multifunction printer sales are set to grow LASER PRINTERS

SALES & MARKETING VP Sales & Marketing: Navin Chand Singh National Manager - Events and Special Projects: Mahantesh Godi (09880436623) Business Manager (Engagement Platforms) Arvind Ambo (09819904050) National Manager - Channels: Krishnadas Kurup (09322971866) Asst. Brand Manager: Arpita Ganguli Bangalore & Chennai: Vinodh K (09740714817) Delhi: Pranav Saran (09312685289) Kolkata: Jayanta Bhattacharya (09331829284) Mumbai: Sachin Mhashilkar (09920348755)

DOCUMENT MANAGEMENT Ending the Paper Nightmare

Managed Print Services bring cost efficiencies in enterprises, and the segment is set to grow with the entry of more players

PRINT SERVICES Leaving Printing to the Pros

Why content security is important and how to protect it

CONSUMABLES Original, Remake or Refill?

OFFICE ADDRESS

20 22

OEM vendors are gaining back the space lost out to local refillers – but not without a tough fight

OTHERS

Going Strong

CHANNEL CHAMPS Sr Co-ordinator - Events: Rakesh Sequeira Events Executives: Pramod Jadhav, Johnson Noronha Audience Dev. Executive: Aparna Bobhate, Shilpa Surve

EDITORIAL.......................................................... 03

Nine Dot Nine Interactive Pvt Ltd., KPT House, Plot 41/13, Sector 30, Vashi, Navi Mumbai - 400 703 Phone: 40789666 Fax: 022-40789540, 022-40789640 Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd. C/O KPT House, Plot 41/13, Sector 30, Vashi (Near Sanpada Railway Station), Navi Mumbai 400703 Editor: Anuradha Das Mathur C/O KPT House, Plot 41/13, Sector 30, Vashi (Near Sanpada Railway Station), Navi Mumbai 400703 Printed at Silverpoint Press Pvt. Ltd, TTC Ind. Area, Plot No. : A - 403, MIDC, Mahape, Navi Mumbai - 400709

TRENDS.............................................................. 06

Multifunction devices and upcountry markets are propelling demand in this segment

HP INTERVIEW................................................... 12 DMPS................................................................. 16 GARTNER INTERVIEW........................................ 21 GUEST EXPRESSION........................................... 26

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cover design : prasanth t r

trends

S E L E C T

S E R I E S

HP launches 360 degree initiative in printing space

s a par t of its ongoing ‘Small is Big’ regional outreach prog ramme, HP India is undert a king multiple initiatives for its customers and channel partners across regions in the country to offer its best sellers in the portfolio of HP LaserJet solutions. To make its best-seller campaign a successful one, HP India is working closely with its channel partners to increase awareness about the HP advantage. This includes HP demo zones for customers in the retail shops, ongoing trainings for partners to update them on the latest HP laser technology, and roadshows that will give channel partners an opportunity to explore the possibilities that HP’s LaserJet portfolio creates for customers. Additionally, HP is also making maintenance of its LaserJet printers an easy affair for

Ajay Rawal displaying a printer at an event

Cyberstar launches E260 series printers

yberstar Infocom has launched Lexmark E260 series - E260d and E260dn monochrome printers. Raj Rathi, Managing Director, Cyberstar Infocom said, “The Lexmark E260 is a simple solution for hassle-free printing, in turn saving time on documenting and providing more time adding value to business.” E260d and E260dn are designed to tap the individual users or small businesses and

are enabled with a built-in network, thus enabling to print from multiple computers located anywhere with wireless networking. Both printers are small in size and are economically priced. As per the company, they come in compact design with sound being as low as 48dB in quiet mode, delivering true 1200*1200 dpi print quality and also print quickly with the first page out as fast as 6.5 seconds with instant warm-up fuser. n

Rashi concludes its fifth channel forum Rashi Peripherals successfully completed the western and southern leg of the ongoing fifth edition of Channel Business Forum (CBF) winning some accolades conferred by various IT resellers associations. The wester n leg star ted from Durg and Mehsana, followed by Amravati, Bhavnagar, Jalgaon, Jamnagar, Ahmednagar, Gandhidham, Satara and Belgaum. The January phase saw CBF V teams also cover southern towns like Villupuram, Guntur, Thanjavur, Kakinada, Tirunelveli, Vizag, Thrissur, Erode, Vizag and Mysore. “It was really a new experience not only for me but for all the dealer friends who attended CBF V. Rashi has set a new benchmark on how to conduct the meets,” said G Dasha Kumar, President, Deal IT – Mysore. Asus team at Mysore CBF V was led by Vinay

DIGIT CHANNEL CONNECT

JANUARY 2010

Dasha Kumar from Deal IT (left) being felicitated by Vinay Shetty of Asus at CBF V

Shetty, Country Head – Component Business, Asus (India) and Jacob Meshack, Channel Sales Manager - Component products, South India, along with reps from Logitech, SanDisk and Netgear. The IT Association of Mysore was felicitated by Vinay Shetty. n

customers through the free service camps that have been set up across cities. This will enable customers to get their HP printers checked at no cost, and replacement of parts will also be a part of this customer care initiative. For those who are looking to begin the year with a brand new printer, HP will also offer buy-back programs where customers can exchange their old HP LaserJet for a brand new one on select SKUs. According to Ajay Rawal, Country Category Manager – Commercial Volume LaserJets, Imaging & Printing Group, HP India, “The ‘Small is Big’ is our approach to the regional markets. The SME clusters set up in the country are some of the most critical ones, and need technology expertise to help their businesses boom. HP India is here to help them leverage technology to its best!” n

Xerox earns JD Power certification

erox has been recognised by JD Power and Associates for providing “An Outstanding Customer Service Experience.” This is the fourth consecutive year the company has achieved the certification for excellence in technology service and support. “At Xerox, our mission is to become a trusted business partner with our customers by ensuring that they get the maximum value out of their Xerox products and solutions,” says Bill Steenburgh, Senior Vice President, Xerox Services. The certified technology service and support program was developed by JD Power and Associates and the Technology Services Industry Association and is one of the customer service industry’s most prestigious recognitions. Qualified companies must first pass the TSIA’s Excellence in Service Operations audit conducted by on-site technical support experts over six days. Xerox’s success in the audit phase allowed the company to enter the second research phase conducted by JD Power and Associates auditors who surveyed over 1,000 Xerox customers. Those surveys solidified Xerox as a leader in providing customer support satisfaction in 2006, 2007, 2008, and now 2009. n

S E L E C T

trends

S E R I E S

Aten launches 32-port Matrix KVM switches

ten International introduces the latest Matrix KVM switches that have been added to its ALTUSEN Enterprise KVM Solutions line. These new Matrix KVM switches provide good video quality and secure control in real time over all equipment in the server room or data centre. The KM0532 and KM0932 allow 5 and 9 consoles to independently and simultaneously manage up to 32 directly connected servers. The switches can be daisy chained, cascaded, or both, providing flexible expansion configurations that allow up to 9 consoles to control thousands of servers. Daisy chaining KM0032 switches offers an additional cost-saving configuration, since the use of dedicated chain ports allow all of the switch’s KVM ports to be utilised for server connections.

They offer audio and virtual media features and being audio enabled, the sound output and beeps from the servers allow administrators to identify and troubleshoot system problems easily. The sound capability is also ideal for presentation facilities, or studio ap p l i c at i o n s . T h e Vi r t u a l Media function allows USB storage devices to be shared among all servers. Operators can perform file transfers or install applications and OS patches across the installation from a single console, thereby reducing down-time and saving maintenance costs. Wi t h a u t o m at i c s ke w c o m p e n s at i o n a n d Au t o S i g n a l Compensation (ASC), Matrix KVM switches ensure better video quality via Cat 5e/6 cabling - 1280x1024 @60Hz over distances of up to 300 meters. n

eScan announces 2010 roadmap

Scan has announced a series of targets and forecasts for the year 2010. As per the company, it wrapped up 2009 successfully with its penetration in the Southern and Eastern parts of India and into a large number of tier-2 and 3. In 2009 alone, eScan roped in 5,000 partners to its channel network through innovative schemes. Speaking on the upcoming technological enhancements to eScan in 2010, Sunil Kripalani, Vice-President, Global Sales and Marketing, eScan said, “The number of Malware has more than doubled, making the Malware signature database huge. To offset this increase, the eScan cloud service that will be released next year will reduce the system footprint by hosting the Malware database in the

cloud thereby not affecting the system performance. eScan for Mac systems and eScan for iPhones will be the new solutions that we are planning to launch in 2010 as the there has been a significant increase in their user base. Shortly, we will also be launching the eScan Rescue Software that will help in cleaning computers that have highly advanced Malware infections.” Adding to this, Anil Gupta, Head of National Sales said, “In 2010, eScan will continue to expand their presence in the tier-2 and 3 cities with aggressive marketing and promotional activities. We aim to make eScan as the preferred Information Security solution provider for all computer users in India be it SMBs or home users.” n

Emerson launches ‘2010 ka dum’ offer

merson Network Power has launched ‘2010(Dus) ka Dum’ offer for its channel partners across India. The scheme is applicable on the sale of Emerson products - Iton series, Liebert GXT MT series, Super 400 D series and Powerbank UPS systems. The scheme is aimed at driving partners to push the sale of UPS systems. Channel partners can look to fetch as many as 40 points for sale of 1 unit of MT 6 kVA with maximum of 200 points for Super 400D 20 kVA. Channel partners can buy Emerson UPS systems and earn points. They can then exchange the points against prizes. For convenience of its partners, Emerson has kept two different prize options for each point slab. Partners can select any one of the options based on their preference. The prizes range from Titan watches and LG DVD players to BlackBerrys and Macbooks. n

HP broadens Mini notebook range

H HP Mini210

P has expanded its Mini notebook portfolio with the launch of Mini 210 notebooks. As per the company, it provides all-day computing, optional high-definition (HD) video playback, mobile broadband connectivity, and is GPS capable. Mini210 comes with Atom 450 instead of Atom 280 and features like Chicklet keyboard, Chicklet Touchpad with multi-gesture support, stereo speakers, wireless LAN, integrated webcam, Bluetooth, Microsoft Windows 7 OS and battery life of more than 9.5 hours. It even offers optional 3G broadband connectivity. Starting at 1.22 kilos (with HDD) and measuring less than 1-inch thin, Mini 210 is available in Black Crystal, Silver Crystal, Pacific Blue and Sonoma Red finishes. It further comes with 10.1-inch diagonal standard or optional BrightView Infinity HD LED widescreen display and a QWERTY keyboard. It is priced at Rs 16,000. n

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trends

S E L E C T

S E R I E S

ABBYY launches FineReader 10 Corp Edn

BBYY, a leading provider of document recognition, data capture and language software, has announced the availability of ABBYY FineReader 10 Corporate Edition, the newest version of its optical character recognition (OCR) software for small- and medium-sized businesses. In addition to all the functions and technologies available in ABBYY FineReader 10 Professional Edition, this corporate-level version provides an array of powerful workgroup and networking capabilities. It allows businesses to easily add OCR functionality to every computer in the office, saving employee’s time spent on labour-intensive routines when working with documents, and to streamline document conversion, digitization and archiving processes.

ABBYY FineReader 10 Corporate Edition comes with concurrent licenses that can be shared among several users providing significant savings to organizations. It ensures automated installation from the server onto several or all workstations within the local network and provides support for multiple network MFPs. With significantly enhanced ABBYY Camera OCR technology, the product expands the traditional ways of acquiring images for recognition from scanners and standard digital cameras to mobile phone cameras. For more efficient document sharing and to save valuable storage space, FineReader’s advanced MRC compression technology optimizes the size of output PDF files, reducing it up to 10 times while preserving visual quality. n

D-Link slashes prices of wireless routers

-Link has announced to go all out with its new aggressive and competitive pricing strategy for Wireless N Routers. Beginning this year, D-Link had shared its plans to concentrate further on strengthening its channel strength. Now moving further, D-Link has decided to increase its penetration in consumer space. As a result, D-Link has announced new and attractive pricing for its existing range of N standard wireless routers. The prices of D-Link N standard wireless router have been slashed by 20 percent. D-Link N standard wireless router includes model number DIR-615, DIR-635 and DIR-655. As per the company, thus consumer can now enjoy the benefit of high speed wireless internet at affordable pricing. “Customers today are demanding speedy Internet and better coverage. N standard routers suffice all these requirements, as they offer high speed with better flexibility and scalability. Further, with this new pricing policy on N standard router we intend to make internet affordable for the masses,” said Jayesh Kotak, VP-Product Marketing, D-Link (India). n

Jayesh Kotak

Ultra-secure flash from Kingston K ingston Digital has released DataTraveler 5000 USB Flash drive, which is FIPS 140-2 Level 2 certified with Level 3 pending, and features 256-bit AES hardware-based encryption. It uses XTS cipher mode and also uses elliptic curve cryptography (ECC) algorithms to meet Suite B standards approved by the US government. “The DataTraveler 5000 delivers unsurpassed levels of security and encryption to

DIGIT CHANNEL CONNECT

JANUARY 2010

ZyXEL’s green way to home routers

government and enterprise customers,” said Nathan Su, Flash Memory Sales Director, APAC Region, Kingston. It utilises patented Secured by Spyrus technology, which supports hardware-based 256-bit AES-XTS and Suite B cryptography, including ECC. The DataTraveler 5000 is available in 2-, 4-, 8- and 16GB capacities. It will also be available with an onboard Malware scanning application via Kingston’s customisation program. n

yXEL Communications introduces NBG 419N Wireless N Home Router 300 Mbps with superior performance capability. Equipped with user experiences on network gaming and multimedia streaming, easy mode and expert mode for quick navigation and setup, it is a Green product with wireless control for energy savings and Wi-Fi protected set-up. ZyXEL NBG 419N Wireless Router compliant with 802.11n technology is six times faster than the standard 802.11g networks. Furthermore, the NBG 419N has the superior performance capability which is eco-friendly and an easy way for multimedia enjoyments. ZyXEL NBG 419N is also equipped with a Wi-Fi Protected Setup (WPS) and a push button, the WPS takes only a few seconds to set up a secure wireless network without any complication. Rishi Samadhia, Executive Director-Channel, ZyXEL Technologies India said, “ZyXEL’s highperformance router provides stable and reliable wireless connections for high-speed data and multimedia deliveries. Its eco-friendly wireless scheduling saves energy and enables the configuration smoothly.” NBG 419N Wireless N Home Router is priced at Rs 8,500. Key features: n Detachable Antenna n Pure AP mode with full WDS n The latest 802.11n technology to offer a cost-effective solution for users upgrading their networks to the next generation. n NBG-419N’s six-level output power control capability makes it a good wireless neighbour n 64/128-bit WEP, and WPA/WPA2 are supported to provide stringent protection for wireless transmissions. n

PRINTING & DOCUMENTATION SPECIAL

MULTIPLE

Advantage With demand for all-in-one business machines increasing among Indian companies, multifunction printer sales are set to grow manifold Soma Tah

espite the challenging economic environment, multifunction peripherals (MFPs) have led the hardcopy peripherals (which includes printers, digital copiers and MFPs) market in terms of growth in 2009. As per IDC figures, around 17 million units of hardcopy peripherals were shipped globally in Q3 2009, with MFPs accounting for almost 63 per cent. In India, as per IDC’s India Quarterly Laser MFP Tracker, the total market for laser MFPs was recorded at 52,761 units during Q3 2009, registering a small quarteron-quarter (QoQ) decline of 2.7 per cent. Monochrome laser MFP was recorded at 51,197 units during 3Q 2009, while the market for colour laser MFP was recorded at 1,564 units during the same period. In spite of the decline, there’s traction in the A4 laser multifunction segment, which offers the best price performance ratio for volume users in their day-to-day business usage.

Business users’ gain MFPs have started attracting the attention from business users across segments, mainly due to the increased functionalities they deliver and the added value they offer against the price. As Vipin Tuteja, Executive Director, Marketing and Business Support, Xerox India says, “MFPs are fast becoming a

preferred option for enterprises of all sizes as compared to standalone devices. The basic reason is their ability to run various functions like printing, scanning, copying, faxing on a single platform, better print quality standards and cost efficiency over standalone individual devices.” “With the price of acquisition coming down, users are moving from single function devices to entry level MFPs.

As the market for Laser MFDs evolves, the focus is going to shift from solutions being provided to delivering on CXO evaluation criteria such as Life Time Value (LTV) and Total Cost of Ownership (TCO). VIPIN TUTEJA, EXECUTIVE DIRECTOR, MARKETING AND BUSINESS SUPPORT, XEROX INDIA.

“With the price of acquisition coming down, users are moving from single function devices to entry level MFPs. The consolidation of multiple devices into one has been an ongoing accelerator for the industry.” VISHAL TRIPATHI, PRINCIPAL RESEARCH ANALYST, GARTNER

MFPs The consolidation of multiple devices (printer, copier, scanner, and fax) into one has been an ongoing accelerator for the industry and continues to gain more traction,” says Vishal Tripathi, Principal Research Analyst, Gartner. KP Ranjan, Country Manager, Lexmark India, says, “With businesses trying to optimize their printing spends, the future growth in the laser MFP will mainly come from the high-end MFPs and A4 MFPs which offer duplex printing. Inkjet MFPs will take the place of single function and low-end lasers.” Comparatively low upfront costs will encourage the adoption for A4 MFPs, and could even replace A3 MFP usage to a great extent, say industry watchers.

Channel upbeat However, laser or inkjet, the channel is happy. Channel partners say that MFP volumes have been quite good in the last year, mainly because of the demand in the SMB and SOHO segments. While the inkjet market for MFP continues to thrive in the SOHO/SMB space, laser MFPs are expected to do well in the enterprise space. Although the initial purchase price may seem a bit higher, in the long term, it saves the organisation a lot of money which they would have to otherwise spend in buying separate devices for photocopying, network printing, scanning and faxing. These factors will help the channel in convincing cautious customers. The value proposition of MFPs has also come of age. Says Vinod Mulchandani, Director, Aarvee Computers, “Earlier, one would get weak scanning solutions tied to a basic printer and copier in the name of an MFP. But with innovations in this space, customers are a lot more confident about the products now.”

Product trends “We have introduced add-on features like colour LCD and SD card slots which we feel can provide value-additions in this space,” says Ajay Madan, Business Head, Digital Imaging System, Panasonic India. “As this market matures, colour laser MFPs are going to become extremely popular. Further, as the market for laser MFPs evolves, the focus will shift from solutions being provided to delivering on CXO evaluation criteria such as Life Time Value (LTV) and Total Cost of Ownership (TCO),” says Tuteja. Indeed, partners can expect a lot of action in the MFP space. n soma.tah@9dot9.in

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JANUARY 2010

laser printers

S E L E C T

S E R I E S

The Next Phase of

mall and medium business users have been showing a strong preference for laser printers for the past couple of years. This is because the prices of monochrome laser printers have come down heavily, offering them an option to get better printing speeds at much lower prices. As per IDC Indiaâ&#x20AC;&#x2122;s Quarterly Printer Tracker, the total India market for laser single-function printers in India was recorded at 1,58,978 units during 3Q 2009, registering a quarter-on-quarter growth of 9.1 per cent . The market for monochrome laser printers was recorded at 1,51,628 units, while the market for colour laser printers was recorded at 7,350 units.

GROWTH With lasers offering faster printing at increasingly lower acquisition costs, a growing number of users are gravitating towards them Soma Tah

Drivers fuelling uptake The sales of laser printers have shown robust growth in the Indian market primarily because of factors such as high reliability, superior quality, better speeds, the ability to handle complex applications and lower per page printing cost in the long run. Laser printers are network-friendly and can easily be set up on large networks. They also have higher-capacity supplies, and are more

DIGIT CHANNEL CONNECT

JANUARY 2010

suited to higher volume printing, which make it more suited to the business environment. Demand from the banking, financial services and insurance (BFSI), education, healthcare, pharma, telecommunications and government verticals is driving the growth. A considerable amount of growth is also coming from the new penetration taking place in the emerging

markets in the B, C and D class cities, where monochrome is driving the market because of low procurement costs. A study conducted by AMI Partners in 2009 found that the adoption of laser printers is a growing trend among Indian SMBs. The study showed that

PRINTING & DOCUMENTATION SPECIAL ADVANTAGES OF LASER PRINTERS n

Prices of laser printers have been dropping drastically over the years and the trend is likely to continue as the market expands and the volumes grow. Though toner cartridges have a higher upfront cost compared to inkjet cartridges, they have a much longer life span, leading to a much lower cost per page. Laser printers are available in many speed variants. The fastest models can print over 200 monochrome pages per minute. The fastest colour laser printers can print over 100 pages per minute. Laser is faster and ultimately more economical for those users who need to print a lot of colour. Laser printers generally have fairly long life-cycles than inkjets and the parts can be easily replaced or repaired.

organisations looking for sharp and quick volume printing are turning to laser printers. Small businesses that used to be the key buyers of business inkjet printers mainly for their relatively lower upfront costs compared to lasers have now turned towards laser printers. This is because the price gap between the inkjet and the entry level laser has reduced over the past couple of years. Inkjets are often sold at nominal margins, as the costs are recovered from the supplies sales. It is also a widely acknowledged fact that the cost per page for inkjet printers is far higher than that of laser printers. This understanding is also driving the uptake of laser printers among small businesses. Interestingly, the adoption of entrylevel laser printers is also growing in the small office space printers mainly due to its cost effectiveness.

The colour play Business users have shown a greater affinity towards colour in recent times

mainly for in-house presentations and other processes. This is helping drive innovations in the colour space. Declining colour prices in the entry level laser segment have also catalysed this growth to a greater extent’. So colour lasers are becoming sensible buys for SMBs these days. But the market is still nascent and it will take time to grow, feel the industry watchers. “There is increased consumption of colour devices and vendors are able to sell colour devices with the decline in acquisition cost and the low running cost. But people in a price sensitive country like India are still very cautious while printing colour. It would be interesting to see how many colour pages are being printed. Two years back colour was said to be in an early stage of adoption in the Indian market and the scenario has not changed much in two years. Though businesses are fast realising the importance of colour in office, the key roadblocks to the adoption of colour are high running costs and the mindset. Till there is no change in the mindset, the number of colour pages printed will remain very low,” opines Vishal Tripathi, Principal Research Analyst, Gartner.

monitor printing by users and accordingly take steps to control printing,” says Anand Kumar, General Manager – Printing & Solutions, Brother International India.

Partner prospects

Laser technology today enjoys about 38 per cent of the total standalone printer market. Customers generally look for a product that is stable as well as affordable and does not create any problem at least in the initial six to eight months. VP SAJEEVAN, DIRECTOR, CONSUMER SYSTEM PRODUCTS, CANON INDIA

Innovate to sell 2008-09 has been a testing time for most of the printer manufacturers as orders from enterprises and corporates were deferred and almost came to a standstill due to a tight check on the operational budget. Flat revenues and declining growth forced the market players to revisit their strategies and to devise new game plans for riding out the unfavourable economic climate. The vendors put an extra effort in improving the channel relationships during the past one year, by planning attractive incentives, offering easy finance options and extended credit support. Simultaneously, they also worked on the pricing and promotions and bring in ingenious and exciting product bundles for the buyers. On the other hand, technology innovations happening in the laser space to drive down the operational cost will also spur the uptake of laser across business user segments. “Many of the initiatives in this space are happening on the software/driver side. Vendors have started bundling print management software with the printers along with job logging features which will help the network administrator to

feature

Vendors have started bundling print management software with the printers along with job logging features, which will help the network administrator to monitor printing by users and accordingly take steps to control printing. ANAND KUMAR, GENERAL MANAGER – PRINTING & SOLUTIONS, BROTHER INTERNATIONAL INDIA

“Laser printers have emerged as revenue generators for both vendors and partners as they can position the products as a must-have for corporate buyers. Laser technology today enjoys about 38 per cent of the total standalone printer market and the market is rising incredibly. Customers generally look for a product that is stable as well as affordable and does not create any problem at least in the initial six to eight months. Laser printers meet these buying criteria perfectly,” says VP Sajeevan, Director, Consumer System Products, Canon India. But a continuous erosion of margins mainly due to the stiff price competition among the principals, is also making it increasingly difficult for partners to sustain themselves in the market and retain customers. “The task of convincing customers will also get a bit tricky with the consolidation of the printing infrastructure and managed print services coming into the picture. The market scenario might get even more challenging for the partners, as an increasing focus on the green environmental initiatives will make organisations work more digitally and print less paper in the times to come,” says Tripathy. “In this scenario, it is essential for the partners to have a right product mix and to look out for newer ways to make revenues. They can do it either by mixing low end and high end boxes or donning a solution provider’s role by providing managed printing services in their very own way,” said KP Ranjan, Country Manager, Lexmark India. But the market sure looks brighter these days as the economic scenario has started to look up slowly. Partners are hopeful of increased sales, once the corporate and SME start buying. Narendra Dhanuka, Galaxy Computech says, “The volume of laser sales is certainly growing as laser technology is becoming increasingly affordable. Besides monochrome, which still governs the laser market in terms of the units sold, the entry level colour market is likely to grow considerably this year among the SMB and corporate users.” n soma.tah@9dot9.in

DIGIT CHANNEL CONNECT

JANUARY 2010

PRINTING & DOCUMENTATION SPECIAL

“COMPANIES WILL BECOME MORE COST CONSCIOUS WITH REGARD TO PRINTING AND IMAGING” Ajay Rawal, Country Category Manager, Commercial Volume – LaserJet, Imaging & Printing Group, HP India

RAWAL ANSWERS QUESTIONS ON THE COMPANY’S GROWTH PROSPECTS, ROLE OF PARTNERS AND PRODUCTS FOR SMEs IN AN INTERVIEW WITH CHARU KHERA. EXCERPTS: DCC: What are your key target verticals and where does HP see growth coming from in 2010?

Our g rowth oppor tunity comes from the fact that SMBs are looking at partnering with IT solutions providers to leverage their existing imaging and printing environment, and also adopt new printing solutions that will help them save costs during today’s difficult economic times. For HP, growth will be determined by these trends in organizations: adoption of MFDs; green initiatives; creation of in-house marketing collaterals; and adoption of colour in the office. Also, in the near future, companies will

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become more cost conscious with regard to their printing and imaging environment. HP’s growth will come primarily from these factors. DCC: What channel initiatives do you plan to undertake during 2010?

Channel is clearly our extended sales force and an integral part of HP. We have an extensive channel partner network across the country comprising Premium Business Par tners, Business Par tners and Registered Resellers. We at HP regularly undertake initiatives such as training programmes, roadshows, seminars to ensure that partners are in sync with HP’s product strategy.

JANUARY 2010

We believe that innovation is the need of the hour, and our solutions are designed to help SMEs grow. HP’s printing solutions provide multiple features, greater flexibility, convenience and ease of use.

DCC: How are your products placed in the growing SME market?

HP has the widest portfolio of imaging and printing solutions. As the leader in this segment, we believe that constant innovation is the need of the hour, and our solutions are designed to help our SME customers grow. HP’s printing solutions provide multiple features, greater f lexibility, convenience and ease of use, and latest technology at an increasingly af fordable price. In this sense, ‘Greater value for money’ is the driving force behind the company’s performance. Our products are also designed to ensure that customers can reduce the ‘total cost of ownership’ through in-built maintenance features that help save ink and enhance ease of use, thereby making printing more cost effective. For our commercial customers, HP has over 25 new printing solutions making it easier, faster, and more affordable for companies to market their business, including the opportunity to create and print exactly what they need in-house. n charu.khera@9dot9.in

PRINTING & DOCUMENTATION SPECIAL

canon

“CANON INTENDS TO BRING A RANGE OF WI-FI PRINTERS IN 2010” VP Sajeevan, Director, Consumer System Products, Canon India

VP Sajeevan, Director, Consumer System Products, Canon India, shares with Charu Khera the company’s strategy for 2010 in the printing segment DCC: As per recent IDC figures, Canon holds the No 1 position with a market share of 41 per cent in single-function laser printers. What are Canon’s two or three most important moves that secured the top slot?

We are glad to be the No 1 brand in this consistently growing category with 41 per cent market share. To achieve this, one of our most important moves was to focus on initiatives that helped us penetrate into tier-2 and 3 markets. In recent times, we penetrated to 324 towns in India. With various campaigns like Print City and City Specific campaign, we have unleashed focused programs for partners through consistent channel dialogues. We could organise 123 channel dialogues in 2009 alone. Technology was the key highlights that ensured brand loyalty among our customers. Such achievements encouraged us to perform better and capture larger market share. Also one of the key reasons that helped Canon secure top slot was our unique product proposition. DCC: How does the market for colour laser printers look in 2010?

Colour printing, be it laser or inkjet, is rising. As per IDC, colour laser printers are expected to witness a significant growth in 2010. Another report by IDC says that the Indian colour laser printer (both single and multifunction) market is projected to grow at 23 per cent CAGR in unit terms for 2007-12. However, 2009 was not a

good year for colour due to recession waves. Most of the corporates and SME deferred their purchases. Hence 2010 holds more opportunities. DCC: Some industry watchers believe that the market for single-function lasers will shift to multi-function printers (MFPs). Please comment.

Yes, certainly, as business demands increase, the printer is transforming beyond its core functions, offering customers more value for money. Multi-function devices are progressively redefining office life, helping organisations to strengthen investment, maximise space and simplify workflow processes. MFDs also simplify supply ordering and minimise maintenance calls, saving time, money, and critical resources for SMBs. For volumes below 20,000 pagesper-month, printer-based MFPs are typically more economical. In addition, you have the option to buy several MFPs and reduce the number of users per device without significantly increasing total cost. DCC: Can you share with us a few key technologies that will rule the printing industry this year?

The industry is moving towards Wi-Fi and 2010 will witness an array of products featuring this technology. Since all most all laptops toady comes with built-in Wi-Fi, going for a Wi-Fi printer makes more sense. Canon intends to bring a good range of Wi-Fi printers in 2010.

To achieve the top slot, one of our most important moves was to focus on initiatives that helped us penetrate into tier 2 and 3 markets.

Multifunction devices are progressively redefining office life, helping orga nisations to strengthen investment, maximise space and simplify workflow processes.

Moreover, the IPM (images per minute) standard of printing is certainly going to be one of the key technologies in 2010. This new standard would mark the transition from the earlier measurement of PPM (pages per minute). IPM makes it easier for users to choose products according to their printing and copying needs. Simultaneously we foresee FINE (Full-Photolithography Inkjet Nozzle Engineering) - a technology for high nozzle counts and nozzle densities to be doing well in 2010. In this, printer ensures fast photo printing performance even in the default mode. DCC: Canon recently invested Rs 12 crore in its Print City project, and eyes 33 per cent of the Indian printing and imaging market. Can you share the details of the project and your strategy?

The Print City campaign was launched with the perspective to regionalise all communication and promotional activities to connect better with the local customers. The first phase of the project was kicked off with an investment of Rs 4.7 crore. Later, Canon replicated the project with another Rs 7 crore. As the Print City campaign has been very successful till now, this year again we aim at increasing our market share in India and hence would definitely plan other such initiatives from time to time. n charu.khera@9dot9.in

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JANUARY 2010

inkjets

Going The market is moving towards multi-function inkjet devices, but single function devices continue to hold their ground. Growth for the market will come from B and C class cities SAKET ANUPAM

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STRONG T

oday, in most organisations, printing is not just any other function; it has emerged as an effective medium of communication. The reason for this is the gradual adoption of the colour printer. According to a report by AMI Partners, the SMB industry spent over $1.3 billion on printers and printing supplies in 2009, and the colour inkjet printer has the maximum penetration among all verticals. It accounts for almost half of all printers used by Indian SMBs. According to industry experts, among the various types of printers in the market today, inkjets are the most popular among SMBs. “Soon after their launch, inkjet printers picked up in the Indian market. Research in inkjet technology has resulted in enormous improvements in performance, usability, and output quality,” explains Milind Diwanji, Pace Computer Consultant, Ahmedabad. He adds that inkjet printers are reasonably priced and easy to use and maintain, which explains their popularity among small enterprises. Inkjet printers can be categorised into two vari-

JANUARY 2010

ants: inkjet single-function printers and inkjet multi-function devices (MFDs). While single function printers just perform printing jobs from the PC or via a network, MFDs come with built-in scan, copy and fax functionalities, besides the standard printing function.

Market trends Vishal Tripathi, Principal Research Analyst, Gartner, says that in the first half of 2009, the inkjet printer market totalled 1.1 million units. HP, the market leader, captured 72 percent of the market, while Epson and Canon had 12 and 15 percent of the market, respectively. He adds that the key adopters of inkjets in 2010 will be the home, SMB and education sectors. S M Ram Prasad, Senior Business Manager – Consumer Product Group, Epson, says that even during the slowdown, the company witnessed an increase in the market share for inkjet printers. “Thanks to the support of our loyal partners, we have managed to grow in the inkjet space. We

PRINTING & DOCUMENTATION SPECIAL

have launched various cost-effective printers in the Indian market, like the B500 and B300 printers. In addition, we have been involving customers in activities like roadshows, seminars, etc, to break the myth that inkjet printers have a higher running cost than laser printers,” says Prasad. HP too recently announced its new inkjet printer with touch-screen and Wi-Fi, with the price range beginning at Rs 6,000 only. The company has launched various campaigns (such as Rethink Inkjet Strategy in 2007) to redefine the inkjet printer business in India. Sharing further insights on the same, Rajkumar Rishi, Director – Inkjet and Web Solutions, Imaging and Printing Group, HP India, says, “HP has constantly innovated to address the needs of consumers and businesses in inkjet printers. Our recently launched Touchsmart printing portfolio resonates style and convenience, and allows users to indulge in and experience the magic of one touch printing. These innovations, coupled with the strong relationship that we share with our channel partners ensures that HP will continue to lead in the inkjet segment in 2010 too.” One of the biggest reasons for the high market share of inkjet printers is their low cost. A wide range of inkjet colour printers is available in the market today, with the most basic priced as low as Rs 3,000. A key trend that is picking up in the inkjet market is an increased focus on multi-function all-in-one devices, as they provide better value for money. “The

WHAT DEFINES A GOOD INKJET PRINTER? n

Cartridge can be obtained easily and does not cost much

Offers good print quality of images.

Has good speed. Vendors mention speed in PPM or pages per minute, but this often turns out to hold true only in cases where the printer is printing at a low resolution, and not for highquality prints

Provides various connectivity options such as Wi-Fi, card reader, direct USB printing, etc

Comes with a display screen for simple and quick editing

Works across various operating systems such as Windows, Mac, Linux, etc

market will continue to move towards multi-function inkjet devices throughout 2010,” says Tripathi. Network-ready devices are also becoming common. They are most popular in the SMB segment, as networked printers can be used across connected PCs. According to IDC figures, multi-function inkjet printers held about 90 percent of the inkjet market in Q3 2009. Says Tripathi, “Today, as most PCs are Wi-Fi enabled, vendors see a huge market for Wi-Fi inkjet printers too,” he explains.

Key challenges The biggest challenge is the laser printer segment. As compared to inkjets, laser printers are expensive, but have a lower cost per page. Because of this, the laser printer market has seen enormous growth. According to IDC, 14,000 units of laser printers were sold in comparison to 4,500 units of inkjet printers in Q3 2009. This indicates the huge demand for laser printers, and their threat to inkjet printers. “With the growing popularity of MFDs, standalone inkjet printers will soon perish. One could say that the inkjet printer, as a technology, gave birth to MFDs,” says Diwanji. He adds that as MFDs offer multiple functions in a single device, they are expected to revolutionise the entire work culture by offering space optimisation. A prime consideration for SMBs when is the amount of usage an enterprise expects for the device. Inkjets work well for text documents or in situations where some type of colour printing (for example, printing photos) is required. However, most inkjets are not designed for printing large volumes, and ink cartridges may need to be replaced quite often. For high volume usage, laser printers work best. Another challenge to the inkjet segment is the growth of refillers/ re-manufacturers like Cartridge World, Cartridge Café, Cartridge Junction, etc. The business model of most inkjet printer vendors revolves around selling the printer device at a low price, and then earning profits through the sale of ink cartridges. However, with local ink cartridge refillers (gray market) coming up, and with places like Cartridge World and Cartridge Café allowing ink cartridge refilling at a low price, cartridge sales have been declining. This has hampered the overall business model of inkjet printer manufacturers.

What lies ahead MFDs have been accepted in the market

Soon after their launch, inkjet printers picked up in the Indian market. Research in inkjet technology has resulted in enormous improvements. MILIND DIWANJI, PACE COMPUTER CONSULTANT, AHMEDABAD

HP has constantly innovated to address the needs of consumers and businesses. Our recent Touchsmart printing portfolio allows users to indulge in and experience the magic of one touch printing. RAJKUMAR RISHI, DIRECTOR – INKJET AND WEB SOLUTIONS, IMAGING AND PRINTING GROUP, HP INDIA

feature much faster than inkjets, but the future still holds great potential for the inkjet segment due to the price difference between the two. The MFD market is growing in the country. It has also grown much faster than expected in international markets. However, standalone inkjets still hold a major share in the international market. At the moment, the ratio is about 60:40 between standalone inkjets and MFDs. In the Indian market, smaller towns will be the focus for inkjet printer manufacturers as well as resellers. According to the MAIT Peripherals Industry Performance Review 2008-09, smaller towns and cities accounted for three-fourths of the overall printer consumption in the country, and registered a growth of 6 percent. This trend indicates the increasing demand for printers in B and C-class cities, and also signals key players’ shifting focus towards these cities. For example, in 2009, Canon launched city-specific campaigns for its products, which resulted in the company emerging on top of the competition in Q3 2009 as well. Tripathi believes that inkjet printers will continue to grow in India throughout 2010. “From 2008 to 2009, the market grew by 2 percent, and this growth will continue in 2010, with B and C-class cities accounting for the maximum share,” he says. The difference in the prices of MFDs and standalone inkjets will ensure that they both find a place in the huge Indian market. With entrylevel inkjets available for less than Rs 3,000 in India and laser MFDs for less than Rs 5,500, small businesses and home users will continue to choose standalone inkjet printers over laser MFDs. The latter products are for people who have evolved over a period of time after using entrylevel inkjet printers. According to Gartner, in Q3 2009, the combined printer market in India stood at nearly 6 lakh units. The growth seen in the printer market towards the end of 2009 is expected to continue through 2010 as well. The inkjet segment too is expected to flourish in 2010, with all major inkjet printer manufacturers taking initiatives and running campaigns to convince consumers and businesses of the benefits of inkjet printers. n editor@digitchannelconnect.com

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JANUARY 2010

PRINTING & DOCUMENTATION SPECIAL

DMPs

DOTTING Along

Dot-matrix printer vendors are expanding their product portfolio based on customised applications Azeeza

n As per IDC’s India Quarterly Printer Tracker 3Q 2009, the total India dot matrix printer market was recorded at 108,089 units during the quarter, registering a quarter-onquarter (QoQ) growth of 32.4%. This was because vendors bagged large orders from Indian Railways and other government organisations.

IDC expects that in CY 2010 the India market for dot matrix printers will record a decline of 5% as compared to CY 2009.

According to Computerworld magazine, the dot matrix printer figures in the top 25 products that refuse to die.

own, but not out. That describes dot matrix printers (DMPs). They continue to screech and hammer in many organisations, despite the tough fight they face from rivals in the printing space. Interestingly, while the overall printer market slumped last fiscal, the dot matrix tribe survived, even though the growth was almost flat at 2%. Epson carried the leadership flag, by keeping over 54% of this market. The market leader grew 48% in the third quarter of 2009 as compared to the same period in the year before. This was due to a 22 % growth in serial DMPs and 27% in flatbed inkjet devices. There is no denying the fact that many distributors and channel partners exited this business as they saw the segment breathing its last. But the market is still very optimistic that DMPs are here to stay at least for another decade as there exists a niche need, that of SMBs and not large enterprises. “Government organisations, public sector banks and Indian Railways are

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NEVER SAY DIE

currently the only large customers for dot matrix printers, while most corporate users are migrating to other emerging technologies,” says Pankaj Chawla, Lead Analyst, Peripherals and Emerging Technologies Research, IDC India.

The opportunities Acknowledging that the growth in the DMP segment was flat last year, Narendra Babu, Product Manager, TVS-E, says, “The way forward is to create opportunities and customise. There are niche requirements that continue to exist.” Explaining the opportunities further, Babu says, “Dot matrix applications basically comprise PoS, which is bill printing, a single copy print; and the other extreme is data processing, which includes managing books.” Analysts say the vendors are keen on expanding their portfolio keeping in mind the market requirements. The focus for vendors now is to make the product more service-centric. It may be status-quo as far as the growth of the dot matrix sector is

JANUARY 2010

There is no denying the fact that many distributors and channel partners exited this business as they saw the segment breathing its last. But the market is still very optimistic that dot matrix printers are here to say at least for another decade as there exists a niche need.

Vendors are focusing on new distribution networks and partner training programmes. The focus has shifted too and is now concentrated on C and D class locations.

concerned, but that does not mean that there is no product innovation. According to Ramesh V, Business Manager, Serial Impact Dot Matrix (SIDM) Printers, Epson India, there is an increased migration from Windows to Linux, so vendors have to design their products accordingly. “Most of the systems are now coming with USB plug-ins. Thus, such customisations are indispensable,” he says. A matter of concern for these vendors is a new breed of competitors. “Many software solution providers are now diversifying and venturing into hardware as well. Infosys is one example. The fight becomes tougher,” says Ramesh.

Plugging the problem There are certain issues plaguing this segment, both on the customer end as well as the distributor’s end. Says Babu, “Earlier a key value creation was that DMPs scored better on Total Cost of Ownership. The difference in TCO between the laser and dot matrix printers is now squeezed. About five years back, the difference was sizeable, up to 10%, but now it is a meagre 2-3%.” To tackle such issues, DMP vendors are focusing on new distribution networks and partner training programmes, especially in C and D class towns. However, some distributors are not convinced. Anil Sachdeva, CEO, Kadam Marketing, discontinued dealing in DMPs a few months back, citing poor quality of products and unsatisfactory after-sales service. n editor@digitchannelconnect.com

PRINTING & DOCUMENTATION SPECIAL

xerox

“DIGITAL PRINTING WILL BE THE FOCUS AREA FOR MOST VENDORS IN 2010” Vipin Tuteja, Executive Director - Marketing and Business Support, Xerox India

Tuteja discusses with Charu Khera Xerox’s printing strategy and the key technologies that will dominate the printing industry in the year ahead DCC: Could you give us a sense of how Xerox printing business will be structured in 2010?

DCC: What would be your key target verticals and where from does Xerox see growth coming this year?

We are focusing on being a customercentric company instead of a productcentric one by providing personalised solutions to our customers through our various offerings, to meet their business-specific needs. We are more like consultants to them instead of mere vendor. With this objective, we have identified ‘Real Business Live!’ as this year’s theme for Xerox , under which we will look at providing real solutions to real business challenges of our partners and customers.

Xerox’s key target verticals will comprise the digital print market (with a focus on verticals like Banking, IT, Insurance and Pharmaceutical), DMS (which will include sectors like government, telecom and BFSI); and MFDs. Digital printing products are being deployed by most of the commercial printers involved in providing end-toend printing solutions including preand post-production. Need for short run printing and personalised variable data printing in the shortest time are being fulfilled by digital printers. BFSI and Telecom sectors along with Utility companies are the biggest users of personalised printing products especially owing to their requirements for transaction billing.

DCC: At what pace do you think will the printing market segment grow in India in 2010?

The Indian digital printing industry has experienced a very good growth rate in the last few years and we hope this growth momentum to continue in the year 2010 also. The Indian digital printing market is expected to grow from $504 million in 2006 to as much as $2.5 billion by 2012. DCC: How are you placed in document management services?

We at Xerox believe that we can offer consistent quality and control of document production, driving improvement while delivering savings to the bottom-line. Our objective is to be an influencing service that supports an enterprise’s document strategy.

DCC: What, according to you, are the key technologies that will rule the printing industry in 2010?

Today’s commercial printing environment is more complex and competitive than ever before. Customers are increasingly demanding faster turnarounds, shorter run lengths, and personalised documents. The key to leveraging these trends is to develop new ways to work that translate into finding innovative ways to increase productivity and RoI. Digital Printing, which has opened up new avenues for the printing indus-

The Indian digital printing market is expected to grow from $504 million in 2006 to as much as $2.5 billion by 2012.

Customers are increasingly demanding faster turn_ arounds, shorter run lengths, and personalised documents for their printing needs.

try will be the focus area for most vendors in 2010. One of the most important advantages that digital printing offers is the ability to offer quick turnaround time because it has no press setup requirements. We at Xerox believe that various technological innovations in 2010 will help people reduce cost and increase turnaround time for digital printers, enabling them to offer better value to their customers. A key amongst them will be iGen4 Press – a productive cut-sheet digital press, which increases productivity by 25 to 35 percent by automating operator tasks, reducing the need to interrupt the press for adjustments and decreasing overall operating costs. Another being Specialty Imaging with Fraud Deterrent technology. This helps in protecting sensitive documents from unauthorised duplication. Counterfeit copies of documents such as bills, tickets and invoices can have serious financial impacts. Keeping this in mind, this technology adds an extra level of security and authentication. Another key technology that will dominate the printing industry in 2010 would be Infrared Mark Specialty Imaging Font - a new security technology that prints variable text that cannot be read under normal light, but can be read when exposed to infrared light. Also popular will be Glossmark watermarking technology. n charu.khera@9dot9.in

DIGIT CHANNEL CONNECT

JANUARY 2010

document management

Ending the PAPER NIGHTMARE Vendors and channel partners are working towards bringing the benefits of document management to mid-size companies Tamanna Ahuja

t is often said that paper, files and prints are living things, especially in government offices. They misplace themselves, print themselves and attach themselves to various stacks. And if you think that we are talking about an era long gone, think again. Yes, we are talking of todayâ&#x20AC;&#x2122;s world. However, one thing is vastly different. Earlier, people did not have the tools to manage the paper volume. But today, they do. How much these tools are used is quite another question. A document management system (DMS) is one such tool. It not only promises to manage your paper for you, but also aims to create a greener world, by minimising the use of paper. DMSs have been around ever since the idea of a paperless world came in many years ago though the telecom company Idea now has ads that espouse the same concept. However, the DMS, in spite of having been around for years and its efficiency, has still not seen mass adoption. And the reasons range from complexity to cost and integration. Here we try to ascertain why the DMS has not scaled the grand heights it was expected to.

The name game DMS has played this game very well. DMS, since its infancy has assumed several names.

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JANUARY 2010

It has been called the Electronic Management System, Enterprise Content Management (ECM), Electronic Data Management and many similar things. Although most will agree that ECM is an advanced form of the traditional DMS,

the two are essentially the same at the basic levels and differ only in terms of some features. â&#x20AC;&#x153;The difference between a pure-play document management solution and an enterprise content management solution is that the latter, apart from managing documents, also manages workflow and the entire content generated by an enterprise such as e-mail messages, reports, Web content, records, etc,â&#x20AC;? clarifies Diwakar Nigam, Managing Director, Newgen Software Technologies. Other than that, people tend to believe that the various names are nothing but a sales strategy. Besides, it also acts as a motivating potion for channel partners as it is more exciting to sell something new instead of the same old stuff. However, there is a cost involved with DMS. If an organisation is already running an ERP solution, then running a document management system is relatively cheaper. And since most large organisations are already on ERP, they find it a good bet to invest in content management systems. Mid-sized organizations, though, have a different story to tell. A lot of them are just beginning to define their IT function and thus just stepping on to the ERP ladder. For them, purchasing a DMS solution in isolation means a lot of cost, and thus thinking. DMS is still not a priority for mid-size organisations. The bold ones however, are going for it, and, seeing results as well. According to HS Sai, ex-CIO, Thompson Press, when he joined, 99% of interaction in the organisation was through hard copies, and he managed to reduce that figure to a mere 6-8%, thanks to a data management system.

PRINTING & DOCUMENTATION SPECIAL

So while there are both tangible and intangible benefits of implementing a content solution, there are several hurdles that are making it difficult for the channel partners to sell these solutions. As Alok Gupta, CEO of Softmart says, “DMS hardly gets sold off the shelves. The direct business is negligible.” He holds the view that only niche players are now into the DMS domain and it’s they who are finding customers.

The second coming It is often said that some things which can’t be controlled by human actions do ultimately work in our favour. Two such things happened to us in the last year. One was the global slowdown and the second was the Satyam fiasco. Both were beneficial to the industry in their own ways. While the meltdown directly increased efficiencies, Raju’s confessions triggered off the pressure to record and be compliant. And these together defined the second coming of the document management solutions. Instead of just minimising paper, the vendors are now increasingly focussing on delivering tangible results. Says Mark Pettit, Executive Director for Xerox Global Services, “Our offering provides a comprehensive suite of services from design to delivery, which

DMS Snapshot n According to IDC, the total size of the DMS/ECM market in India was estimated to be around $45 million (approximately Rs 210 crore) in 2008. It is expected to register a growth of 30-35% in 2010. The global average for DMS growth is between 17-19%. n Unstructured data, according to analysts, is growing almost at 200% in India. n According to some industry estimates, a DMS system, if implemented and used properly can reduce paper usage by more than 70% and boost productivity by more than 30% for an organisation. n Integration with various other business applications like CRM, BI and also with the mobile is the way ahead for DMS.

enables organisations to cut cost and increase RoI by 20 percent on an average, increasing productivity for enterprises by around 40%.” Also, a DMS is now increasingly becoming essential for compliance purposes. And that is one reason that even mid-sized organizations are opting for it— at least the basic level of DMS, if not the advanced model. As a country we still figure low on the document management adoption curve. However, the market is fast catching up and channel partners and analysts are hopeful. The downturn and the Satyam fraud have done their bits for DMS adoption, and helped it to come to the forefront in a country that is replete with implementation challenges and the fear of capital expenditure. Going green is the need of the hour, and hence a buzzword across the world. And document management systems help in this.

Channelising productivity Although the market hasn’t opened up completely yet, channel partners and vendors are trying their best to make DMS reach its maximum potential zone, the mid-sized organisations. But there are a lot of challenges. For one, many organisations believe that document management systems are strictly designed for large enterprises alone. Then, the flashpoint for SMBs, the pricing. As ECM has been traditionally viewed as a cost-intensive deployment intended to target large enterprises, SMBs have shied away from them. To add to that, integration with the existing infrastructure is also a challenge. In India, building awareness and convincing people accustomed to hard copies to move to a digital way of working is a big impediment as well. The brighter side to this is that the reluctance on the part of consumers has translated into innovation on part of vendors and channel partners. Xerox, for instance, has a new game plan for India. “The strategy we have started to deploy from 2009 onwards is focused on enterprise business solutions where we follow the document and associated processes within an organisation. This horizontal approach drives holistic costs efficiencies but, more importantly, process benefits,” says Pettit. Channel partners also are launching new strategies to promote these

“The strategy we have started to deploy is focused on enterprise business solutions where we follow the document and associated processes within an organisation. This horizontal approach drives process benefits.” MARK PETTIT, EXECUTIVE DIRECTOR, XEROX GLOBAL SERVICES

“The difference between a pureplay document management solution and an enterprise content management solution is that the latter, apart from managing documents, also manages workflow and the entire content generated by an enterprise.” DIWAKAR NIGAM, MANAGING DIRECTOR, NEWGEN SOFTWARE TECHNOLOGIES

feature solutions. Newgen is now coming up with a SaaS model for ECM in association with some of its partners. That will change the way medium enterprises look at document management, says Newgen. Similarly, Vikmans Multimedia, who specialise in digitisation, is organising a seminar-cum-exhibition called Digitisation Expo2010. The main aim of this, apart from displaying high-end specialised scanners, software applications and project implementation, is to spread awareness. Manish Chhabra, MD, Vikmans, wants to put across the benefits that document management software can bring to the organisations. “If you want to scan 2,000 documents, store them in as small a place as possible and transfer them speedily, we want to say that you can do all this easily,” he states. Other channel partners like Business Automation, NetSpider, who hold expertise in documentation services are also trying out new methods to increase the uptake of DMS in mid-size organisations. However, one major issue that comes with every software channel partner is being able to provide timely and adequate implementation expertise to their clients. In the past, the experience of some clients has not been good. This has resulted in some cynicism towards third-party implementations.

The road ahead DMS has undergone a series of advancements since the time it came to India. But not all verticals have displayed enough enthusiasm for adoption. The adoption level of DMS in India is in different stages of maturity and varies for different organisations and verticals. Among the verticals which have been the early adopters of DMS in India include BFSI, telecom, IT and ITeS, government, transportation and logistics. According to experts, pharmaceuticals is the next big emerging vertical for DMS adoption. Some key trends are emerging in the document management space. They include optimization of storage, and improving bandwidth, readiness and accuracy of data. DMSs are supporting new formats and increasingly being made available on mobile.n editor@digitchannelconnect.com

DIGIT CHANNEL CONNECT

JANUARY 2010

PRINTING & DOCUMENTATION SPECIAL

print services

Leaving

PRINTING PROS

to the

Managed Print Services bring cost efficiencies in enterprises, and the segment is set to grow with the entry of more players Tammana Ahuja

anaged Print Services (MPS) are typically of fered by a printer manufacturer or a thirdparty solution provider to businesses to streamline their printing environment, optimise the device fleet and reduce the overall printing costs. In simpler terms, MPS is a cost effective alternative to handling the printing and imaging requirements instead of the regular purchase/lease of printers and other related devices. “MPS helps enterprises in managing the entire printing infrastructure optimally,” explains Ranjan Chopra of Team Computers.

According to Sanchit Vir Gogia, Senior Research Analyst for Springboard Research, “Just as an organisation outsources the IT infrastructure management, opting for print services has also gained a lot of acceptance among Indian companies today.” He further adds that most enterprises for which printing is not a core business process have seen better results from getting a third-party to manage their entire printing infrastructure. “This is where ‘pay per use’ or ‘pages per print’ (ppp), or ‘on-demand’ services, find the majority of clients. Another option is to go for a complete printing solution from a single vendor,” says Gogia.

Status report So how is printing happening in India? At present, the MPS market in India is heavily dominated by players such as HP, Xerox, Lexmark and WeP. As per Springboard Research, HP has around 48 per cent market share in the Asia Pacific region. HP claims that enterprises can achieve 10 to 30 per cent cost reduction while simplifying the management of their imaging and printing environment, and focusing on their core business. Nitin Hiranandani, Director Enterprise Sales and Services, Imaging & Printing Group, HP India, says that the beauty of balanced deployments lies in the fact that a company can manage the

DIGIT CHANNEL CONNECT

JANUARY 2010

Industry watchers believe that in the context of the Indian market, MPS is beginning to go mainstream. In the past, there have been speculations that the growth of the MPS market can become a threat to standalone printer sales. But industry experts say that this can only happen when total document outsourcing gains more ground. Moreover, some observers even feel that receptivity of some verticals is low and there are other verticals like BFSI where there can never be total outsourcing of print services.

printing and imaging infrastructure with tailor-made solutions that are scalable to future demands too. The economic slowdown has been the major contributor to the growth of the MPS market in India. However, the catch lies in the fact that though Indian enterprises are opting for MPS, it is still not deemed a necessity. The Indian MPS market size, up to the year 2012 is expected to grow at a CAGR of 23.2 per cent—this seems rather remarkable in these times. “As the market potential is still largely untapped, more service providers are expected to join the competition soon. Companies such as Canon, Lexmark, Ricoh, Toshiba, etc are already coming up as major challengers to the market leaders HP and Xerox in the international markets,” adds Gogia. Canon is another player focusing highly on the Indian market to promote its MPS. MPS, though selling quite well right now, is still not a widespread trend. According to Springboard Research estimates, nearly 5 per cent of the total APEJ printer market is managed using MPS. So the potential is still untapped. Lower total cost of ownership (TCO) is another key factor for the growth of MPS in India. Anything that translates into real cost benefits is sure to work in India, sooner than later.

Going forward MPS is not new in India and players like HP, WeP and Xerox have proved that it has many takers. Traditional models like pay-per-use can prove to be very cost effective for the SMB space. Large enterprises, on the other hand, face a constant challenge to manage their printing infrastructure and this justifies the growth of MPS in this segment too. Industry watchers believe that in the context of the Indian market, MPS is beginning to go mainstream. In the past, there have been speculations that the growth of the MPS market can become a threat to standalone printer sales. But industry experts say that this can only happen when total document outsourcing gains more ground. Moreover, some observers even feel that receptivity of some verticals is low and there are other verticals like BFSI where there can never be total outsourcing of print services. Going by the market intelligence forecasts, MPS is set to grow and large as well as small enterprises can benefit by it. MPS is surely on the growth path. n editor@digitchannelconnect.com

PRINTING & DOCUMENTATION SPECIAL

gartner

“COST REDUCTION AND FOCUS ON INCREASING PRODUCTIVITY ARE KEY DRIVERS FOR MPS” Vishal Tripathi, Principal Research Analyst, Gartner

TRIPATHI SHARES WITH CHARU KHERA TRENDS IN THE CONSUMABLES AND MANAGED PRINT SERVICES (MPS) SEGMENTS IN INDIA. EXCERPTS FROM THE INTERVIEW: DCC: Can you throw some light on the printing consumables market in India?

Currently, there are no statistics/ figures available to assess the size of this market. The key reason being the presence of a large number of unorganised cartridge resellers. But this market holds great potential for OEMs as well as re-manufacturers (the likes of Cartridge World, Cartridge Cafe, Cartridge Junction, etc) - provided re-manufacturers are able to maintain the quality and reliability of their refilled printer cartridges, as well as engage in marketing and user education. Consumables are sure to be a key area of focus for most OEM vendors in 2010. DCC: What are the key reasons for the growth of unorganised trade in consumables?

India is a highly price-sensitive market, which justifies the growth of sale of low-priced cartridges. Though these re-fillers are able to get into SOHO and SMB segments, they are struggling to break into corporate, primarily because of lack of quality assurance. DCC: With growth of re-manufacturers, what impact would it have on the market share of OEMs?

Re-manufacturers are slowly making their way in the medium enterprise segment in India. OEMs might lose some more market share to these re-manufacturers provided they are able to live up

to the expectations of customers. Costwise, re-manufacturers are able to offer a much better price than OEMs, but the lower cost is offset by poor yields and cartridge failures. Can you please comment on the futuristic trends in the space? Printer OEMs are losing sales as customers are increasingly turning to re-manufactured supplies to help cut costs. Because printer supplies produce higher margins than the product itself, this trend is leading to lower profits for printer OEMs. In addition, there is potential for damage to the printer OEMs’ brand because of poor quality and counterfeits. In the years ahead, OEMs, re-manufacturers, re-fillers, counterfeiters - all would co-exist. Re-manufacturers need to get more organised and move from a cottage industry to bigger and better organised facilities, and focus more on quality to make further inroads in OEMs’ market share. OEMs need to lower their prices, but with decline in margins, this doesn’t look a viable option. Another option OEMs can explore is to re-manufacture their own cartridges to a higher tolerance than the re-manufacturers and sell them at a lower price. DCC: What are the key growth drivers for MPS in India?

Cost reduction and focus on increasing productivity are the key drivers for

Remanufacturers are slowly making their way in medium businesses. OEMs might lose some more market share to these remanufacturers.

An increased effort from vendors to promote MPS has helped the segment grow. Moreover, Green IT and growth in IT services has further fuelled the growth.

the growth of MPS. Moreover, a lot of new players are entering this space. With the entrance of more players and local dealers, it will intensify the price competition, which will benefit the end users. An increased effort from vendors to promote MPS has helped the segment grow. Moreover, Green IT and growth in IT services has further fuelled the growth. With increase in demand, providers might offer the services through channel partners, distributors, SI and VARs. In 2010, there will be an increased demand from BFSI sector seeking document-related solutions, particularly print accounting and management related solutions. DCC: What growth do you foresee for re-manufacturers in the MPS space?

Players like Cartridge World and Cartridge Cafe need to make customers understand the benefits of opting for MPS. Recently, Cartridge Junction has announced its plans to foray in the MPS segment in India, but chances are grim for them to succeed. Re-manufacturers don’t have the regional or national capabilities to offer MPS in true sense. MPS requires a lot of investment on devices, services and support, which will be challenging for them. Most important for them would be the need to change the mindset and look beyond being the mere re-filler. n charu.khera@9dot9.in

DIGIT CHANNEL CONNECT

JANUARY 2010

consumables

Original,

Remake or Refill? OEM vendors of printer consumables are gaining back the space lost out to local refillers – but not without a tough fight from organised re-manufacturers and refillers SAKET ANUPAM

onsumables are the lifeline of any printer. And this is obvious as the consumption of cartridges soars compared to new printer installations. The key to making money, as most vendors agree, is not just by selling printers but by business generated through consumable sales. Companies like HP, Canon, Xerox, Epson and Samsung are taking initiatives and marketing activities to counter the competition from the growing refilled or compatible cartridge vendors as well as the unorganised grey market. The consumables market in India today can broadly be classified into three segments: OEMs (vendors like HP, Canon, etc); the unorganised or grey market; and the recent entrants being re-fillers or re-manufacturers, representing the likes of Cartridge World and Cartridge Cafe.

Market trends Although there are no accurate statistics to indicate the size of the printer cartridge manufacturing and recycling industry in India, it is roughly estimated to be around Rs 3,000 crore. With the printer consumable market growing rapidly, the biggest concern for most OEM vendors is the refill or compatibles that have joined the fray, or the illegal manufacturing and sale of fake printer cartridges, which is no longer being done on a small scale. Sharing key insights on the printer consumable market in India, BB Somani, CEO of Abbee Consumables and Peripherals, says, “When one talks about consumables, there are two broad categories—one where original ink and toner (by vendors such as HP, Canon) is used; and another where compatible inks and toners are used for refilling cartridges. This is

DIGIT CHANNEL CONNECT

JANUARY 2010

often described as the unorganised or fragmented refilling business in the IT channel space.” He further adds that it is a given fact that consumables bring in higher margins to vendors as well as channel partners.

The rise of refills Like any segment, the lure of hefty margins has given rise to the formation of a huge unorganised market in this segment too. As per industry watchers, a large number of small refillers monopolise the refilling business in India today whereas there are very few specialised refilling stores. “It is a highly fragmented and unorganised market as one can find any Tom, Dick and Harry sitting to refill ink cartridges at 1/10th the original cartridge’s cost,” says Somani. To fight as well as prevent the growth of the unorganised printer cartridge industry, cartridge remanufacturers and recyclers across India have even formed the Indian Cartridge Remanufacturers and Recyclers Association (ICRRA). Anuj Thakkar (name changed on his request), who refills cartridges at Mumbai’s Lamington Road market, says that a locally manufactured refilled ink cartridge works as good as the original one and can be refilled up to eight times if done properly. “We refill ink cartridges for about Rs 100 or so, whereas an original would cost a customer somewhere between Rs 500 and Rs 600. Most often these cartridges are of Chinese make, which justifies the low price,” adds Thakkar. However, he accepts that by using this kind of product, one loses vendor warranty on the printer, which more

PRINTING & DOCUMENTATION SPECIAL

and more users are realising slowly. “Our customers have sharply declined over the years. A key reason is various lucrative promotional offers by vendor companies,” claims Thakkar.

The re-manufacturing way Major players like HP, Canon, Epson, Xerox, Samsung, etc have been promoting their own consumables in the market. And then there are refilling manufacturers who follow an altogether different concept. Australia-based Cartridge World, with its franchisee business model is one such example. The company has opened various refilling outlets across the country. Cartridge Cafe is another retail outlet that follows the franchisee model in India. It offers consumers with diverse products, rationalised pricing, and adequate service offerings. V Raghavendran, Director, eLabs India (Cartridge Café - re-manufacturer of Rainbow Cartridges) says that the response to the re-manufactured cartridges is extremely good today and corporates are fast realising that they can cut costs while saving the environment to avoid global warming [Since re-manufactured cartridges prolong the life of the cartridge, they are considered environment-friendly]. “Customers are now aware that the OEMs are also selling their re-manufactured cartridges as ‘new’ at the cost of ‘new’, whereas we are transparent to the customer and say it’s priced at half of the OEM rate, and customers trust us.”

The ‘original’ benefits For most vendors, consumables are a major revenue earner. Many have been projecting that the dominance of

WHAT VENDORS CAN DO TO PROMOTE ORIGINAL CARTRIDGES n

Hold information campaigns to educate the consumers about the benefits of using original cartridges

Offer incentives/schemes: Give customers a better reason to buy original cartridges

Provide good post-sales support: This will help ensure greater consumer loyalty

Attract customers with options apart from pricing

Educate customers about the menace of using fake Chinese refill products

counterfeit products will decline slowly and eventually. Vipin Tuteja, Executive Director - Marketing and Business Support, Xerox India, believes that the scenario has changed a lot today. According to him, be it a large enterprise or SMB, they adhere to certain guidelines while refilling cartridges and opt for original products, even if local refills come at much lesser perceived costs. “The benefits of using original cartridges are multifaceted – they provide greater clarity in prints and better resolution of images, improve the life of a printer, increase its duty cycle, reduce the cost per page printing. For instance, if a refilled cartridge can print 100 pages, an original cartridge would print about 200 pages,” adds Tuteja. Business customers, aware of the benefits of using original cartridges and toners, adhere to the usage of original supplies whereas a majority of consumers at home and SOHO approach the unorganised refillers. Commenting further on the nongenuine menace in the consumables space and its fate, S M Ramprasad, Sr Business Manager - Consumer Product Group, Epson India, says, “The focus of our recent developments has been centred on inks/toners, what we believe is the heart of the printer. We at Epson have done a few things to combat the menace of unorganised trade in the consumables space. First, we make the products affordable to counter the threat and secondly, we consistently educate the Indian consumers about the need for using genuine products. We also provide value additions to customers like on-site warranty supports, providing customer loyalty programs, etc.” The company claims that their entrylevel cartridges are priced as low as Rs 250. So if a non-genuine cartridge is priced at somewhere between Rs 100-200, a customer realises that it makes no sense for him to destroy his printer by using substandard inks. “Usage of genuine Epson consumables is now up to 60 percent from about 45 percent a few years ago. The wide gap between original and fake cartridges existed almost five years ago but of late, I have witnessed an increased customer preference for genuine and original supplies,” adds Ramprasad. He even says that the biggest challenge is to maintain the stock of consumables at every location across India. “I’ll explain with an example. Let’s say a particular cartridge comes in four colours. To ensure that all will be available at all times at all stores

“Customers are now aware that the OEMs are also selling their remanufactured cartridges as ‘new’ at the cost of ‘new’ V RAGHAVENDRAN, DIRECTOR, ELABS INDIA

feature sometimes becomes a difficult task,” he says. Canon is another leading vendor that has been excessively advocating the use of original cartridges. Recently, the company offered a Maxima watch to every customer on the purchase of Canon cartridges. VP Sajeevan, Director, Consumer System Products Division, Canon India adds, “Canon has always promoted the use of original cartridges. Our printer segment has shown healthy growth throughout 2009 and we plan to educate and thereby persuade them to make the right decision of buying original cartridges. Original cartridges not only enhance the print quality but also support the longevity of the printers.” He further says that due to slowdown, customers have become very careful about their spending and lucrative offers would give them enough reason to go ahead and buy original cartridges.

In the future

“Usage of genuine Epson consumables is now up to 60 percent from about 45 percent a few years ago. Of late, I have witnessed an increased customer preference for genuine and original supplies.” S M RAMPRASAD, SR BUSINESS MANAGER - CONSUMER PRODUCT GROUP, EPSON INDIA

With people becoming price as well as quality conscious, small-time local refillers are reducing in number. On the other hand, organised refillers (the likes of Cartridge World) are carrying out various awareness activities focusing on cost, quality assurance and post-sales service support, through refilled or compatible cartridges. Industry watchers believe that with a healthy growth rate, and rapid expansion plans, this sector is the one to watch out for. A few OEM manufacturers still believe that counterfeit products eat into a huge portion of their market share. But others seem to be optimistic about a change in the fate of original cartridges versus fake Chinese products. Even statistics reveal that most large MNCs prefer to buy original cartridges; and it is thus only the SOHO as well as a few SMBs that these OEM vendors would have to lure with lucrative offers apart from pricing. In the end, a consumers’ decision only depends on three broad criteria—quality, price and performance. For local recyclers who want to grow, it is time they focus more on quality. Vendors can go with affordable prices to garner further market share. Printing consumables business is certain to keep growing at a healthy pace and there is likely to be a place for everyone to co-exist. n editor@digitchannelconnect.com

DIGIT CHANNEL CONNECT

JANUARY 2010

PRINTING & DOCUMENTATION SPECIAL

guest expression

PIEZO POWER

different volumes through a speaker. Modern electric guitars all use piezoelectric pickup elements that sense the vibrations of the strings and convert them into precise electronic signals for amplification.

Going big time

From photo printers to micro helicopters, the magic of piezoelectricity is prevalent everywhere Andrew Chan

hat do the most advanced photo p r i n t e r s h ave i n common with the world’s smallest helicopter, electronic watches, gas stove igniters and electronic drum pads? Well, they all use piezoelectric components. Piezoelectric materials are those that change shape or bend when a current is applied to them; conversely, these materials also produce an electric current when pressure is physically applied on them. But just why are these materials so ideal for such a diverse range of applications?

The initial years Piezoelectricity was discovered in the late 19th century by French

HOW PIEZOELECTRIC ELEMENTS BENEFIT PRINTING Printers that use piezoelectric print heads are able to precisely control the volume and placement of ink droplets to achieve higher resolutions. These result in sharper, grain-free photo prints with smoother tonal transitions compared to other printing technologies.

Piezoelectric printer heads run much cooler than thermal inkjet print heads and thus, can last much longer.

The lower heat involved in piezoelectric printing also allows printers that employ the technology to use a wider range of inks like UV-curable and solvent-based inks for printing on special uncoated vinyl media like stickers. These inks are too volatile for use in the high heat operation of conventional thermal inkjet printers.

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sibling scientists, Pierre and Jacques Curie. They found that certain materials – especially crystals – could predictably change shape when a current was applied to them. This led to the first application of piezoelectric materials in 1917 - as a submarine-detecting sonar. As the research in piezoelectric materials advanced, it turned out that they were ideal electrical transducers – i.e. devices that convert one form of energy into electricity. In this case, pressure applied to piezoelectric materials is converted into electricity. The key strength of piezoelectric materials is their highly precise reaction to electricity. When a certain amount of current is passed through a piezoelectric material, it will change shape or bend to a very precise degree that can be measured in nanometres! Varying the current will result in a precise resulting change in shape. Conversely, they can also generate very accurate electrical charges from varying amounts of pressure applied to them! The high degree of accuracy and safety in reaction to electricity and pressure gave rise to the use of piezoelectric materials in a wide range of modern day applications ranging from gas stove starters to electronic drum pads. For example, in a gas stove starter, a ceramic disc is compressed to generate electricity that is used to cause a spark to light the gas fire; and in an electric drum pad, piezoelectric pickups deform in reaction to the varying strength of the drumstick strikes, and are converted into precisely varied electrical currents for playback at

JANUARY 2010

ANDREW CHAN

Piezoelectricity was first discovered in the late 19th century by French sibling scientists, Pierre and Jacques Curie. They found that certain materials – especially crystals – could predictably change shape when a current was applied to them. In a printer using piezoelectric technology, the volume of ink being shot out of the nozzle can be very precisely controlled by varying the electrical charge given to the piezoelectric elements in the ink chambers.

By far, the most common application of piezoelectric materials today is in electronic timepieces. As long as your watch or clock uses a battery for its power source, you can bet that it uses piezoelectric technology. In a battery-powered timepiece, the battery’s current is applied to a crystal – usually quartz – which causes it to bend and vibrate at a steady rate. The frequency of this precise oscillation is then counted to measure each second. This technology was pioneered by Seiko (Epson’s parent company), which released the world’s first piezoelectric watch in 1969.

Piezoelectricity in printing Since the 1970s, the Seiko Epson Corporation has researched the use of piezoelectric elements for use in printing as a superior alternative to thermal inkjet technology, culminating in the launch of their first piezoelectric photo printer in 1994. Today, Epson has refined its proprietary piezoelectric knowhow and remains the only maker of photo printers that employs or licenses this advanced technology. In a piezoelectric printer’s print head, elements made of piezoelectric materials are constructed into the ink chambers behind the nozzles. To shoot the ink through the nozzles, an electric current is passed through the piezoelectric elements, causing them to bend and thereby mechanically force the ink out through the nozzles. Because of the precise nature of how the piezoelectric elements react to even the smallest variation in electricity, the volume of ink being shot out of the nozzle can be very precisely controlled by varying the electrical charge given to the piezoelectric elements in the ink chambers. This enables ink droplets as small as 1.5 picolitres – or 1.5 times a trillionth of a litre! Piezoelectric technology has indeed come of age, with its versatility being articulated by the wide range of products that it is found in, and expressed by the beautiful photographs that it has enabled printers to create. n Andrew Chan is PR Manager, Epson South & Southeast Asia.

PRINTING & DOCUMENTATION SPECIAL

THE

CARTRIDGE

Conundrum

There are several myths about remanufactured cartridges. It’s high time we dispensed with them

B B SOMANI

B B Somani

ndia’s IT spending growing at a rate of 20 percent plus per annum is one of the fastest in world. The Indian IT industry is full of opportunities and one of the big growth areas continues to be the green business of refilled and remanufactured printer consumables. Also, governments, big corporations and small businesses across India look towards cost savings every day. There was a time when ink and laser cartridges of your printer could not be refilled but had to be replaced with a new one when they dried up. Thus printer manufacturers used to make money on the cartridges rather than the printers themselves. Naturally, these manufacturers were not inclined to refill used cartridges when this choice came on the scene. Another option in the past was to get your cartridge refilled by a local company that undertook refills but this meant either poor quality printouts or damage to the printer. This was due to unskilled and casual approach of the refiller.

However, it is not the same anymore. Today there are companies that provide compatible or remanufactured cartridges that not only have the compatibility with the original product but are also available at half the price of an OEM cartridge. Even refilling and remanufacturing retail chains like “Abbeefill Cartridge Refilling Station, Cartridge World” etc. provides professional refilling services. Due to professional approach coupled with technical skilled manpower deployed by these retail chains, customer, before buying remanufactured cartridge can refill his cartridge at least three to five times depending upon the use of the cartridge. Refilling is even more cost effective and is available to the customer at one third price that of OEM and half the price of remanufactured cartridge. In India 75 to 80 percent of the market is still covered by OEMs whereas all other players like Organised refilling chains, compatible cartridge manufacturers, remanufacturers comprise only 20 to 25 percent of the market. Projections show that

A properly remanufactured cartridge has all of the internal components replaced. So you get not only a cartridge refilled to capacity with high quality toner but it also has a new high quality drum, new wiper and doctor blades, new foams that seal the cartridge, etc. As a result, your cartridge is just like new - with the exception of the plastic shell of the cartridge.

guest expression the market share of these players is set to rise. It is true that Indian customers are extremely price sensitive and also the average purchasing power is too low. This requires still lower prices in India for widespread penetration of the kind seen in the dynamic mobile cell phone markets where India adds on an average 10 million new connections every month. Relatively high PC and printer prices to end-users results in further low penetration. Excise duty, CVD and local taxes which differ from state to state and city to city further increases effective taxes despite ITO agreements and zero customs duty. A p r o p e r ly r e m a n u f a c t u r e d car tridge has all of the internal components replaced. So you get not only a cartridge refilled to capacity with high quality toner but it also has a new high quality drum, new wiper and doctor blades, new foams that seal the cartridge, etc. As a result, your cartridge is just like new - with the exception of the plastic shell of the car tridge. Remanufacturing process involves dissembling, cleaning, refilling toner, replacing appropriate components, print testing and repackaging. A good remanufactured cartridge meets or exceeds the quality standards of a new cartridge. A refilled/recharged car tridge cannot measure up to the quality you get from a remanufactured cartridge. Unfortunately, the consumer weighs e ve r y t h i n g i n o n e b a s ke t . T h e consumer does not really understand the difference. The sad part is that most of the unorganized refillers and so-called remanufacturers also are unaware of the importance or the impact on the quality. They end up purchasing cartridges that are not remanufactured and are not aware that they are probably only getting refilled/recharged cartridges. If you want to peddle an inferior product labelling it as a superior product, you are hurting yourself and the industry as a whole. The consumer will get educated today or tomorrow and start the weeding process. As an industry, we need to be clearer in our perceptions so that we can project ourselves better. The consumer should be in position to make an informed choice between the two. n B B Somani is CEO of Abbee Consumables and Peripherals.

DIGIT CHANNEL CONNECT

JANUARY 2010

guest expression

Linking the

Instead of taking a fragmented approach to storing paper and electronic files, companies can do better with an integrated documentation strategy

DOCUMENT PROCESS G

MARK PETTIT

lobal companies are facing increasing pressure to integrate t h e i r p a p e r a n d e l e c tronic documents. In addition to ever expanding content volumes, external forces such as government regulation, terrorism, cyber crime and natural disasters are creating new critical challenges. But making the transition from physical to electronic document management isn’t easy, as few organizations have the expertise to implement such a strategy on their own. For help, most companies are turning to trusted third-party purveyors of print management. The typical first step by these professionals is to take a macro view of the customer’s organization and follow its records from creation to final distribution, looking for better management opportunities that otherwise would remain hidden. Once this is accomplished, for most companies, a centralized document management system that includes at its core, a robust imaging and archiving system is key. Digital imaging and archive solutions quickly integrate paper and electronic documents into digital workflows by scanning, indexing and archiving vast amounts of a company’s hard copy documents. Once electronic files of the documents are made, they are available to the customer in a variety of ways, such as through a secure web site, compact discs, or hard disk drives. Another option is to have the electronic files stored and managed remotely at a secure repository. Once established and operating, an imaging solution can link employees, dispersed offices and partners to records that in the past may have been difficult to locate, or difficult to share, once located. Indeed, findings from a study by analyst firm IDC and Xerox Corporation indicated that knowledge workers spend 20 percent of their day looking for information in documents. About half of that time, they can’t find what they’re looking for. This creates a ripple effect that wastes time—as employees toil to recreate missing information, which leads to more printing, copying, e-mailing and archiving. According to the study, the negative impact of such a flawed process can lead to inefficient customer service and delayed product, services and billing delivery. In addition to the efficiency that an imaging solution can bring, companies should consider the large amount of physical space that paper documents require, as well as the difficulty of indexing and

DIGIT CHANNEL CONNECT

JANUARY 2010

PRINTING & DOCUMENTATION SPECIAL

retrieving them. Converting physical documents to digital significantly reduces internal and external storage costs. Many organizations also store content much longer than necessary, spending unnecessary dollars and posing potential legal risk if valuable information is compromised or lost.

Hosting the hassle Imaging and archiving solutions can be conducted at a company’s site, remotely at a professional imaging centre, or at a combination of both. But the bottom line is, a company can gain much by offloading this otherwise Herculean task to professionals. In addition to being able to recognize operational and cost savings opportunities and then strategize to achieve them, turning to a trusted partner allows the customer to focus on its core competencies. Technology providers, such as Xerox, offer imaging and archive services through industry-accredited facilities around the world and some, will also conduct such services directly at a customer’s location. Trained personnel armed with sophisticated production and tracking software tools take an enterprise look at documents, understanding first how people inside a customer’s company create, modify and use the information on a daily basis. Best practices are analyzed and then applied to develop a flexible, measurable

approach to digital records management that is based on the customer’s specific needs and business requirements. Utilizing a third-party for document imaging and storage services also requires a great deal of trust amid heightened security concerns and increased corporate governance through regulations like SarbanesOxley and Health Insurance Portability and Accountability Act. Responsible imaging partners must not only guard against unauthorized access, they must be equipped with sophisticated back-up systems. Advanced controls and precautions on equipment and facilities including secure Web-based portals, employee version control and workflow safeguards protect against cyber-attacks while seamlessly integrating with each individual organization’s security standards. Xerox Global Services, for example, takes an integrated four-step approach that consists of: 1) Sourcing, customers’ structured data such as invoices and payments, and unstructured documents, such as email and memos; 2) Capturing, where scans the documents centrally at a facility or directly at a customer’s location, and then integrates the documents with the customers’ business processes; 3) Managing, indexes and stores a customer’s documents in an online repository and provides the necessary content and document management services; and 4) Offering a variety of ways for customers to access

Beyond the Bottom Line Business benefits of a sound imaging strategy: n Improved

productivity: Manual, hard copy processes are streamlined, enabling immediate access to critical information. Employees are able to locate and obtain relevant information more quickly, allowing them to share information within the organization and with customers more cost-efficiently.

n Decreased

cost: Warehouses of paper and storage costs disappear; saving money and helping an organization re-capture lost office space.

n I mproved

revenue: With information more readily accessible, employee decision-making and transaction processing are accelerated, bringing in additional revenue and providing staff with more time to focus on their core work.

n Added

security and regulatory compliance: Security controls built into imaging and archiving systems, both on and off-site, ensure information integrity and accuracy, as well as provide protection from both physical and technological disaster. Strengthening legal requirements that make executives personally liable for information integrity are also increasing the immediacy for reliable records management.

guest expression their documents.

Tearing down document silos

MARK PETTIT

Findings from a study by analyst firm IDC and Xerox Corporation indicated that knowledge workers spend 20 percent of their day looking for information in documents. About half of that time, they can’t find what they’re looking for. This creates a ripple effect that wastes time—as employees toil to recreate missing information

A company can gain much by offloading the otherwise Herculean task of imaging and archiving to professionals. In addition to being able to recognize operational and cost savings opportunities, turning to a trusted partner allows the customer to focus on its core competencies.

The definition of the word “document” continues to evolve, taking on a variety of formats, including paper, electronic files and even e-mail records. Compounding the challenge of managing various document permutations is the fact that most companies printing documents at a multitude of geographic regions, making any attempt to rein in costs difficult. In fact, most large companies are not even aware of their total document spend. The IDC/Xerox study found that document costs (from creation to management) represent 10 percent of a company’s expenses. Yet 65 percent of respondents said they do not measure the document management costs. This is often due to fragmented ownership across different print categories and business units, inefficiently sourced jobs from multiple suppliers, and expenses hidden in myriad account codes. By imaging the variety of documents a customer produces and then creating a centralized information repository that manages all records flowing in and out, companies can eliminate the document silos that result from fragmented ownership—allowing employees to work smarter. Organizations from small to large are realizing that a sound document management strategy that incorporates the full spectrum of information will lead to improved communication between employees and customers, cost savings and increased productivity and profitability. Documents are one of the most critical elements of business life. The content they carry serves as the backbone of all work processes. As such, it’s important to consider the information, and not the physical paper, as the critical component in any document management strategy. Contrary to popular belief, the answer is not to eliminate paper, rather to understand how to best use, manage and store the information residing in those documents. New technologies that promise advanced capabilities and secure real-time access are being developed and perfected with each passing year—bridging the gap between the paper and digital worlds and helping organizations achieve and even exceed their business goals. n Mark Pettit is Executive Director, Xerox Global Services.

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JANUARY 2010

PRINTING & DOCUMENTATION SPECIAL

guest expression

GROWTH Imperatives

Despite multiple business benefits, the managed print services segment in India is still very small. Here’s what needs to change SANCHIT VIR GOGIA

lthough Indian enterprises are gradually looking towards Managed Print Services (MPS) to help them create a ‘worry free’ printing environment, the offering is yet to reach its full potential. In India, while lower Total Cost of Ownership (TCO) continues to be the main reason that enterprises adopt MPS, another key reason is the need to streamline printing environment – typically, too many departments in an enterprise are involved in procuring printers and consumables and hence most enterprise printing fleets comprise printers from a variety of vendors. This dramatically increases operational costs of running these devices and, in the long run, reduces the TCO. Other key reasons furthering MPS in India include the need to focus on core business activities (and not non-core IT activities) and no need to pay upfront to purchase printers and use flexible payment models like pay per page. Not being ‘locked in’ to a specific printing device and access to latest technology when the print environment has been outsourced is another reason driving demand for MPS in India.

Why MPS has not taken off While India is predicted to be fastest growing market for MPS in the region until 2011, it does not represent the largest MPS market opportunity in the Asia Pacific region, and in terms of maturity, is considered in a nascent stage of adoption. Unfortunately, enterprises in India still view MPS as an alternative way to procure printers and mostly give the strategic long-term benefits of the offering a miss. Clearly, there is still a lot of uncertainty regarding the benefits of MPS engagements. We’ve also observed that enterprises in India tend to perceive MPS as an “expensive and complex outsourced service”. Clearly, vendors need to promote a fuller gamut of MPS benefits that appeal to both CIOs and line of business decision makers. The need to educate enterprises and change perceptions of MPS is paramount. Lastly, I believe it’s vital for vendors to proactively target the SMB space and offer flexible pricing models to induce trial and promote the offering.

Key trends MPS as a concept is still evolving and needs time before it is seen as a refined offering that vendors can

Size of the MPS market 2008 2011 2012

CAGR 2008-2012

APEJ MPS Market

467

825

1001

21.0%

India MPS Market

23.2%

Figures in $ million

DIGIT CHANNEL CONNECT

JANUARY 2010

SANCHIT VIR GOGIA

In India, while lower Total Cost of Ownership continues to drive enterprise adoption of MPS, another key reason is the need to streamline printing environment – typically, too many departments in an enterprise are involved in procuring printers and consumables. There are several growth inhibitors to MPS in the Asia Pacific region. For one, there is still a lot of uncertainty regarding the benefits of MPS engagements. Enterprises are also distracted by security concerns over document privacy.

finally “commoditize.” Although early efforts have been observed in this space from vendors such as HP (the most notable), Fuji-Xerox, and Lexmark, MPS has yet to reach the stage where it is considered a “must have” service by most end-users. According to Springboard Research estimates, nearly 5 percent of the APEJ printer market is managed using MPS, and even this has only occurred in the past couple of years. Springboard Research believes there are several growth inhibitors to MPS in the region. For one, there is still a lot of uncertainty regarding the benefits of MPS engagements. Enterprises are also distracted by security concerns over document privacy. These issues, along with employee resistance to “losing their devices” has impeded enterprise MPS.

Critical success factors Springboard Research believes that vendors need to educate the market and change current perceptions of MPS as an “expensive and complex outsourced ser vice.” Moving forward, Springboard Research believes that also educating enterprises about print infrastructure optimization is critical, and vendors need to ensure that this information is available and sent to prospective clients on a regular basis. I believe in countries like India, it’s imperative for vendors to have a welldefined channel strategy and work with local services providers as strategic partners. While this will not only help them foster local presence, it will also effectively reduce competition from these local service providers that have been observed to offer vendorneutral MPS services and capture a share (though relatively small) of the domestic MPS marketplace. Springboard Research believes that SMBs will be an important focus area for vendors that plan to expand with productized service offerings. As such, vendors are using the “pay per page” pricing model to promote affordable price points for these SMBs. Springboard reiterates that vendors must invest sufficiently to foster its channel ecosystem – service providers, resellers, dealers, SIs, VARs – as all are critical to ensure quick growth in the SMB space. n Sanchit Vir Gogia is a Senior Analyst with Springboard Research