MFD Vendor Analysis Presentation

[company]

Print/Copy/Fax Device and Support

Vendor Selection Analysis

Prepared By: Todd Stevens

Current Situation at [company]

[company] is currently under a 60 month maintenance and lease contract with Xerox. Some key specifics of this contract are as follows:

• Expires on March 1, 2010.• Covers 206 Multi-Function Devices, 407 desktop printers, 35

faxes, and 117 misc. other print devices (Kodax, Canon, HP.)• Allows a total of 3 FTE (Xerox Technicians) who provide support

every day from 7am to 7pm.• Averaging ~$2,000/device/year for lease and support when

407 of these devices cost ~$1,600 and are basic printers (2006 data.)

Vendor Analysis Methodology

Methods Used for Analysis:

• SWOT

• End-User Survey (e-mailed 10/2/07)

• POC (Proof of Concept)

• Talking to Business Users

• On-line Research

• Existing HP Customer Conference Call

Xerox SWOT Analysis – Xerox Provided

STRENGTHS

- DocuCare Service performs at least 90% of all repairs- Supply Management: Procurement, Delivery, replacement- Preventative Maintenance- Maintains equipment fleet uptime above 95%- Equipment usage tracking (meter capture) for Cost Center chargeback reporting- Device utilization studies- Enables [company] to focus on core competencies

WEAKNESSES

- Fully utilize technology available to deliver service (i.e.: laptops, blackberry)

OPPORTUNITIES

- Improve percentage of Preventative Maintenances above 2% of total activity- Improve equipment load balancing- Execute on Office Document Assessment Output

THREATS

- Device saturation: 767 Devices versus original configuration of 300

- Lack of print work centralization

Xerox SWOT Analysis – Provided by Todd Stevens

STRENGTHS

- End-users know equipment - On-site technicians know business and property - Users heavily rely on on-site technicians for support- Firmly entrenched in business/property

WEAKNESSES

- Not #1 in marketplace- Core competency is/was copier devices - Equipment stability issues - Equipment functionality issues – 2 known areas @ [company] where a HP printer had to be setup - On-site technician skill level not up to par- Users heavily rely on on-site technicians for support - Reactionary versus being proactive, were happy to maintain status quo until I brought HP in

OPPORTUNITIES

- Upgraded equipment is more reliable - Reworked contract better serves [company]- Provide transparency in accounting/usage/trending data - Better educate users on equipment/features - Help ‘sell’ DocuTech functions (central print shop) to alleviate stress on smaller devices

THREATS

-Market leader (HP) taking over account at [company] and possibly [company] if POC goes well-New equipment does not resolve stability issues and/or injects more issues -New contract not beneficial to [company]

HP SWOT Analysis – HP Provided STRENGTHS

- Leaders in Image & Printing business- World’s Largest IT solution provider- Excellent reputation with customers - Highly transparent with customers- Brand reputation- Technology leaders & innovators- Global- Fiscally strong- Extremely reliable, bullet-proof products (Test & Design legacy)

WEAKNESSES

- Culture-Internally focused-Not entrepreneurial- Marketing- Slow to change internal processes- Lengthy, cumbersome internal processes

OPPORTUNITIES

- Services- Growing demand of products & solutions- Higher market share - Internet- International markets- Networking- Consumer needs

THREATS

- CompetitionDELLLexmarkXeroxIBM

- Remanufactured toner- Printer cartridge business- Illegal duplication of patents

HP SWOT Analysis – Provided by Todd StevensSTRENGTHS

- Leaders in Image & Printing business - World’s Largest IT solution provider- Excellent reputation with customers - Highly transparent with customers- Brand reputation- Technology leaders & innovators- Global- Fiscally strong- Extremely reliable - bullet-proof products (Test & Design legacy)

WEAKNESSES

- Currently no locally-based technical resources

OPPORTUNITIES

- Roll-out efficient, cost effective fleet at [company] from the onset- Replace Xerox fleet at [company]- Provide Economic Synergy for company (servers, desktops and SAN are already HP) - Migrate [company] to a full ‘HP Property’

THREATS

-Xerox’s new devices and management software are better-Complacency -Contract not beneficial to [company] (re: no Economic Synergy)

Xerox Device and Support Survey Form

Xerox Device and Support Survey Results - Summary

26 unique respondents from a wide variety of business units

Account Associate Services ratings were all Very Satisfied or Satisfied

Xerox Multi-Function Devices ratings were mostly Satisfied but there were key items that were noted many times as Dissatisfied. These are:

• Machine Reliability (13x)

• Device Provides All Required Functionality (5x)

It seems most, if not all, users are happy with the support and support team, but the reliability of the devices and the devices not providing all

capabilities required are major issues.

Xerox Device and Support Survey - Comments

“Hi Todd, I have (2) Workcentre Pro35 machine and they always gets jam, pretty annoying. Our Tech guys in the other hand”

“When it comes to cardstock printing, it is not always smooth. Paper jams constantly occur when printing cardstock menus and place cards.”

“We have one that we use to print out menus for our events & it will only

print a few at a time before repeatedly jamming. It took me almost an hour to print out 35 copies of an event menu last week. On the other 2 copiers (catering & convention services), they have their occasional

moments so my only dissatisfaction would be with the one that it used for our cardstock. Thanks.”

“Maybe it’s just me, but I find this device to be extremely aggravating. Little things, such as not automatically detecting legal sized paper when

copying, make me think we can do better.”

“Your staff is awesome. There is always a quick response by onsite people and available supplies. We have had several that have broken down frequently. Our AP dept has a large volume of use and has had

several down time issues.”

HP Proof of Concept – Credit / Collections

• During customer dialogue, found Credit and Collections department was using 2 Xerox MFD’s, 1 HP printer, and 1 fax machine to meet their business requirements.

• Contacted HP and had them install and configure a 4345 which is currently performing all of Credit and Collection’s printing/copy/fax requirements.

• 4 aforementioned devices pared down to one (4345), hard and soft cost savings realized.

• Only issue with 4345 is staple location, which can be resolved by utilizing the next larger model. This model will be needed at [company] anyway due to the volume increase in the consolidated department.

• HP also installed a replacement printer in [user’s] office (HP 3005x replaced Xerox 4500.)

HP Onsite Managed Print Services OptionsOnsite personnel available at three levels to meet a range of requirements and handle a variety of basic and value-added duties. You enjoy better performance, higher availability,

and greater productivity because your HP printing and imaging products consistently perform at their best.

HP Onsite Management Service is an optional service available to customer with an HP Pay per use for Imaging and Printing contract. Depending on the level of service you select, HP places an HP representative or HP team at a single designated site or throughout multiple locations. The onsite coordinator frees up your staff to focus on core business activities,

while HP personnel handle printer management tasks. As a result, you enjoy a worry-free imaging and printing infrastructure and leave the risk of technology, logistics and cost to HP.

Three levels of HP Onsite Management Services are available: • HP Level I Support Assistant Coordinators perform a range of basic device management tasks

• HP Site Associate Level II Coordinators perform all Level I tasks, plus preventative maintenance, end-user training, and other value add activities

• HP Site Associate Level III Coordinators are responsible for providing all of the Level I and Level II tasks, plus selected high-level management and problem resolution activities.

Benefits • Improved performance and availability with fast issue resolution

• Enhanced productivity as HP personnel help your staff make the best use of your print resources • Increased employee satisfaction. HP specialists are there to help make every use of your printers and

copiers a positive one • Professionally maintained equipment delivers consistently better results

• HP expertise allows you to focus on running your business, not on time-consuming equipment management tasks

[reference Co.]– HP MFP/MPS Level 3 Customer

[reference name]– Dir. Technologies

• User to Device ratio = ~12-1• Migrated from Xerox and Canon devices to HP• Utilizing Auto-Toner Delivery (ATD) and feature is extremely handy• 100% leased fleet (5 year)• No network faxing yet, all analog• ~2500 device fleet after roll-out complete (2/08)• Fleet contains most of the currently available HP models

November 2007 Vendor Value Study - CIO Insight

Top 10 Vendor Value 2007• 1 Red Hat 80%• 2 Google 79%• 2 Hewlett Packard 79%• 2 VeriSign 79%• 5 Check Point Software 77%• 5 Research in Motion 77%• 7 Cisco Systems 76%• 7 Citrix Systems 76%• 7 Dell 76%• 7 McAfee 76%

HP vs. Xerox Device Footprint Comparison

My Recommendation My recommendation is as follows:

• Utilize HP printer, copier and fax devices • Utilize HP Managed Imaging and Printing Services w/on-site support

(Level 3)• Structure contract to expire on 11/09 (same as [company] Xerox)

•This will allow us to evaluate the [company] core HP fleet and determine if we want to stay with them or go with Xerox •If HP evaluation at [company] goes well, re-visit contract to have HP devices and services added to [company] property or go with separate property contract

• Purchase the 3005x and 4250 printers and lease the more expensive multi-function devices (copier, fax, print, scan)

• 100% network-based faxing (i.e. no analog lines/cards)• Utilize HP Secure Print to reduce the number of local printers on

Managers and above workstations (NEED EXECUTIVE LOB BUY-IN.)• Front Desk Hotel Outage Report is sent as a file to be saved on the

printer instead of hardcopy printouts every 5 hours.• Market Xerox Docutech services better to alleviate small device

usage/costs (i.e. Job Submission Form on intranet, need better than 48 hour turnaround for jobs.)

Estimated Savings

Hard

30% to 35%

Soft

Variable depending on final contract terms and conditions