HP “Makes It Count” for Enterprise Customers with Potential Cost Savings of up to 30 Percent with Managed Print Services, Including Energy Savings of Up to 80 Percent1
Singapore, March 19, 2009 – HPtoday outlined its innovative portfolio of technologies, solutions, and flexible services and support options for enterprise customers to reduce cost and environmental impact. These offerings allow customers to achieve an optimized output strategy for immediate and near-term cost savings in this challenging economic environment.
The Asia Pacific technology market is still expected to show positive growth in 2009. Businesses are expected to shift their focus from capital expenditure (CAPEX) to operating expenditure (OPEX) as C-level executives look to preserve cash. Industry analyst firm IDC has noted an increased preference to deploy innovative solutions and utility-based contracts like managed print services to achieve cost savings, greater operational efficiency as well as business process optimization(3).
“With the urgent focus to make every cent count, companies can depend on HP to partner with them to find immediate and near-term ways to cut their operating costs. The first step toward maximizing efficiency and reducing cost is to know where to look,” said Janice Lim, General Manager, Imaging and Printing Group, HP Singapore. “The strong momentum in HP Managed Print Services is testament that the time is ripe for customers to turn their attention to this low-hanging fruit as an urgent cost saving opportunity today – to optimize and manage their costs and generate productivity in their output environment. Additionally, streamlining their document workflows will also improve cost management and efficiency, and help retain customers, so that companies can be positioned for success today.”
HP Managed Print Services continue to enable businesses to cut imaging and printing costs by up to 30%
According to Gartner’s report, "Actively managing office printing can lead to a reduction of 10% to 30% in recurring spending on document output.".(4) By managing and optimizing the office printing environment, HP Managed Print Services (MPS) can help enterprise customers to achieve this potential cost savings, allowing them to better manage costs while simplifying the management of their imaging and printing environment, and focus on their core business. Through HP MPS, businesses also have the opportunity to upgrade their printer fleet to reduce their total cost of ownership by managing capital outlay, simplifying hardware procurement, managing older equipment effectively and disposing the devices in an environmentally responsible manner via HP Planet Partners.
Validating the strategic role that HP MPS plays in helping businesses streamline management, minimize costs and maximize results, industry analysts place HP:
Gartner placed HP in the Leaders Quadrant in its Magic Quadrant for Managed Print Services Worldwide(5)
HP is the number one preferred vendor of choice for MPS, associated with managed service in IDC’s latest peripherals end-user research (6)
“Businesses today are looking for easy-to-implement solutions with immediate tangible cost savings and optimized infrastructure impact. According to recent research conducted across Asia Pacific, about 15-20% of all organizations interviewed stated that they planned to implement a document-related solution or service in the next 1-2 years,” said Suchitra Narayan, Research Manager, Peripherals Research, IDC Asia/Pacific. “The same survey highlights the HP brand as top of mind for businesses within the managed print services market(6).”
In Asia Pacific, HP MPS experienced strong growth, recording increased customer traction with total contract value growing by 108 percent in financial year 2008 over financial year 2007(7). New MPS customers in Asia Pacific who are going to yield cost reductions in the output environment include:
New South Wales Department of Education and Training (DET) (Australia) will replace up to 65,000 of its current imaging devices with up to 30,000 new devices throughout the three-year HP MPS contract. DET is currently spending more than AUD$100 million in the imaging and printing category yearly. This spend will drop dramatically with the new laser printing solutions that HP is helping to implement in DET. The Department expects savings when the total imaging solution is fully rolled out of between AU$25-35 million yearly and a potential to reduce paper consumption by up to 700 million printed pages yearly.
WISDRI Engineering & Research (China) chose HP MPS to protect enterprise information security, while fitting in with WISDRI’s overall information security management system. With HP LaserJet 5035MFPs for each department and additional HP LaserJet 9040dn for high-volume printing tasks, the devices support employee identification, contributing to enhanced efficiency and higher productivity. WISDRI reduced the number of A3 printer from 80 to 40, while cutting the cost for copiers and scanners by adding copying and scanning functions. Data from the WISDRI Information Center showed that the company printed 5 million pages with an enhanced level of security and a decrease in printing cost by more than 20% in 2008.
HP manages enterprise customers cash flow with the launch of a flexible support contract
HP is helping enterprise customers manage their cash flow with the launch of an attractive flexible support contract that allows customizable installment payment options, instead of the usual one-time upfront cost. Under this offer, customers have the option to decide on monthly, quarterly or semi-annual installments on their annual service contracts, whilst continuing to enjoy the same benefits for upfront HP Care Packs. In addition, for existing customers who wish to extend their printer refresh cycle, they can choose to opt for post warranty care pack services beyond the standard 12 month warranty. Furthermore, if a customer signs on a 3 to 5-year printer/multifunction printer (MFP) service support agreement, customers can choose to pay nothing for the first 12 months of the contract(2).
Helping our customers go green in imaging and printing as a driver for additional cost savings
Further cost-saving opportunities can be found in managing the behavior of printing in companies by utilizing HP innovations to reduce energy costs and control over the output environment.
Implementing HP Managed Print Services on the merits of the business benefits alone is a smart decision for many organizations. Factor in reduced environmental impact and the business case becomes even more compelling. Pre- and post-analysis of some HP MPS customers’ imaging and printing operations reveals energy savings of between 30 percent and 80 percent(2) and reductions in paper consumption in the millions of pages.
Customers who have achieved tangible cost savings include:
3M: 3M’s savings have reached more than $3 million in the first two years of the five-year contract with HP. The cost per page on many devices is as much as 90 percent lower than 3M was paying in the past. As a result, 3M has reduced energy consumption by an estimated 79.9 percent, saving more than $1.2 million in energy costs. Correspondingly, 3M expects 8,240 metric tonnes reduction of CO2 emission from energy and paper reductions, equivalent to taking 978 cars off the road for one year.
Viacom: By changing document workflows and setting printers to duplex mode, Viacom estimates it will reduce the number of pages printed by 12.5 percent, projecting savings of more than 10 million sheets of paper. The printing fleet also uses 66.2 percent less energy than it did before the MPS program was implemented—a reduction of more than 539,000 kWh valued at $114,409.
Independent from MPS, these innovative technologies also help reduce energy costs:
Instant-on Technology found in HP LaserJet printers provides up to 50%(8) energy savings over traditional fusing
HP Web Jetadmin (WJA) enables customers to install, configure, troubleshoot and manage all of their networked imaging and printing devices. This can enhance management efficiency and provide environmental benefits at the network level, such as setting printer sleep and wake modes to reduce their entire printing fleet’s energy use.
According to Gartner’s report(9) , “Organizations can potentially reduce annual paper costs by at least 30% by selecting duplex printing as the default setting across the output fleet.” Enterprise customers can also look to make it easy to reduce paper consumption by deploying duplex-capable devices and setting duplex printing defaults at the network level using HP Web Jetadmin and HP Universal Print Driver. During a pilot test, HP was able to cut paper use by 25% by simply by setting duplex printing as the default with HP Universal Print Driver. Upon completion of their optimized printing infrastructure, with duplex printing set as default, HP expects to use 800 tons less paper annually,.
Additionally, companies can implement user-authenticated printing solutions (i.e. PIN, Private, Pull Printing). Not only do these solutions improve security and compliance, they can also reduce wasted paper and energy. According to Gartner, “With as many as one in 10 documents sent to the printer and uncollected or sent again before collection to correct user errors, enterprises could reduce ad hoc print costs by up to 10 percent by implementing a PIN authentication system(9).
There are a number of ways HP can help companies to assess their current printing fleet today:
With HP Eco Printing Assessment, enterprise customers assess their energy consumption, paper usage and carbon footprint and determine ways to use less energy, recycle more and reduce the impact of imaging and printing. The assessment also helps quantify the financial and environmental benefits of “going green”.
TheHP Carbon Footprint Calculatorfor printing allows customers to gain visibility to the carbon footprint and compare their existing printer fleet to that of a new, optimized fleet to understand how they can reduce their impact on the environment and reap energy savings.
Position to drive longer term growth for market recovery
Working together with its strong solutions business partner ecosystem, HP’s robust portfolio of imaging and printing solutions help enterprise customers improve paper-intensive document workflows, which can both accelerate business results and reduce companies’ environmental impact.
HP Document Capture & Workflow solutions for Education allow educational institutions to integrate document capture processes directly into workflow processes, thereby cutting student admissions processing time from days to minutes and achieving up to 90 percent(10) in cost reduction for student records management by removing the need for paper-based archival systems and storage space.
HP Forms and Document Automation Solution for Government & Education help organizations reduce costs associated with the design, production, and management of the multitude of documents produced on a daily basis, while allowing them to be more responsive. Flexibility in creating forms on a real-time basis enables organizations to eliminate the 20 percent(10) wastage typically associated with pre-printed forms due to obsolence. In addition, organizations can look to cost savings in using blank paper stock over pre-printed forms that cost three times less(11).
By capturing and delivering documents digitally, you can speed document-based workflows, virtually eliminate the need for faxing, and lower the amount of paper your organization uses. Today, HP customers using HP Output Management Solution are reducing their need for printed pages by anywhere from 18% to 70%(12), amounting to paper and material savings measured in millions of pages ─ while also ensuring the reliable, time-critical delivery of documents.
HP Exstream helps deliver customized communications up to 85% faster, increase customer response time by as much as 10X and cut document processing costs up to 80%(13).
HP, the world’s largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP (NYSE: HPQ) is available at http://www.hp.com.
(1) Pre- and post-analysis of some HP MPS customers’ imaging and printing operations reveals energy savings of between 30 percent and 80 percent and reductions in paper consumption in the millions of pages – these figures come from the analysis of three companies’ enterprise pre- and post-MPS deployment. One was actual reductions and the other two are anticipated results. Similar results were also used when analyzing customers’ output fleets.
(2) Zero payment scheme is applicable only if a customer signs up for a 3 to 5-year printer/MFP support contract as an extension of an existing warranty. The minimum contract value is US$1,000 per annum. Applicable in select markets.
(3) IDC Asia/Pacific, Sandra Ng, Group Vice President, Asia/Pacific Communications, Peripherals and Services Research.
(4) "Actively managing office printing can lead to a reduction of 10% to 30% in recurring spending on document output." -- Gartner, "Cost-Cutting Initiatives for Office Printing", Sharon McNee, Ken Weilerstein, 22 Feb 2008
(5) Gartner, “Magic Quadrant for Managed Print Services Worldwide,” by K. Weilerstein, et al. Sept. 25, 2008. The Magic Quadrant is copyrighted Sept. 25, 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
(6) IDC Report “Document Solutions and Services – Certain Opportunities in an Uncertain Market, February 2009”.
(7) Based on internal tracking for HP Managed Print Services business for FY2008 over FY2007. HP’s full financial year for 2008 ended on October 31, 2008.
(8) Compared to laser printers and AiOs that use traditional fusing, June 2008. Energy use based on HP testing using the ENERGY STAR® program's TEC test method criteria
(9) "Organizations can potentially reduce annual paper costs by at least 30% by selecting duplex printing as the default setting across the output fleet." – Gartner, "Cost-Cutting Initiatives for Office Printing", Sharon McNee, Ken Weilerstein, 22 Feb 2008.
(10) Based on internal research.
(11) Average processing costs for an electronic form is 36¢ (US) compared to $1.26 (US) for a paper invoice. PriceWaterhouse Cooper (PWC).
(12) Alinean, Inc., “HP Output Management: The value of guaranteed output delivery”, April 2007 and internal customer case HP customer-provided data
(13) Based on post-implementation results confirmed by customers that have deployed HP Exstream
© 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.