Xerox Looks to Boost Partner Revenue with Managed Print Service Tools

Xerox (XRX) is looking to help its resellers capitalize on the lack of established managed print service programs among small and midsize businesses by introducing four new tools for its channel partners.

Each of the tools will be included in the Xerox Partner Print Services offering. The company expects its new suite of tools to help partners reduce customer cost by up to 30 percent and help resellers establish recurring revenue streams.

The new Xerox tools include an enhanced managed supplies service, which allows partners to automatically supply replacements for printers that are not under a cost-per-page price plan. The service is expected to help customers save money on their cartridge replacements while establishing an average 25 percent margin on managed ink and supplies revenue for partners, according to Xerox.

Additionally, partners can order and renew their assessment tools and services through the NewField IT e-Commerce Storefront, which Xerox expects will help resellers develop a more efficient MPS program for their customers. The company will offer a “pro” version of the service at a discounted price to its resellers.

Xerox also introduced a new API that will allow partners to integrate their front- and back-office systems to reduce administrative costs and improve help desk and incident management metrics, according to the announcement.

Finally, Xerox Digital Alternatives is expected to help customers automate their paper-based processes through a desktop and mobile assistant solution, thus cutting down on the need to print physical documents.

Currently, about 72 percent of SMBs lack an established managed print service, said Mike Feldman, president of Global Document Outsourcing and Large Enterprise Operations at Xerox.

“We believe that large and small and medium-size business customers—in other words customers of all sizes—have very similar needs and desires,” said Feldman, in an interview with The VAR Guy. “And we believe that channel partners working with Xerox can deliver this very effectively to our SMB customers.”

Xerox’s MPS business is especially important, as its channel business is expected to grow to encompass nearly two-thirds of the company’s technology revenue by 2016, said John Corley, president of Channel Partner Operations at Xerox. Currently, about 50 percent of the company’s revenue comes through its indirect sales channel.

“With these MPS tools, channel partners can grow share of wallet with existing customers while locking out competitors, and in the process we impact our bottom line by selling more technology and services, and locking in post-sale revenue,” said Corley, in a statement. “The new tools move beyond helping a client print for less. They automate business processes, boost employee productivity and drive security and mobility.”