1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2014 Info-Tech Research Group Inc. Reduce Costs Through Printer Consolidation Safely confront IT’s third rail. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2014 Info-Tech Research Group

2. Info-Tech Research Group2 2 This Research is Designed For:This Research Will Help You: This Research Will Assist:This Research Will Help You: This Research Is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our Understanding of the Problem IT directors and business operations managers who are refreshing their printers or considering consolidating their enterprise printers Determine your organization’s current printing costs, usage, and capabilities Define your organization’s printing requirements and select a solution Make the case for printer consolidation and estimate cost savings Develop a printer strategy and implement the strategy CFOs and COOs of organizations that are refreshing their printers or considering consolidating their enterprise printers Understand the challenges involved in consolidating printers Understand the potential this initiative has to reduce costs

3. Info-Tech Research Group3 3 Resolution Situation ! Complication ? Info-Tech Insight Executive Summary Most organizations do not have an aggregate view of their printing costs. Not surprisingly, printing has become a large hidden expense in IT. Printer consumables are purchased autonomously by each department, non-networked desktop printers are everywhere, and everyone seems to be printing in color. Getting buy-in to control printing costs can be difficult: ◦ Few organizations can articulate how much printing is costing them, making the urgency of this situation and cost savings opportunities unclear. ◦ In most cases, nobody is accountable for controlling printing costs so there’s a lack of incentive to do so. ◦ Printers are a sensitive topic and initiatives involving printers often face extreme end-user resistance. Conduct an office walk-around and collect printing purchase receipts/statements/service records to inventory your printers and aggregate printing costs. Obtain visible management buy-in early in the project by presenting the current printing costs and cost savings potential. Visible buy-in will set a tone for the rest of the organization and is a crucial step to developing a printing-aware culture. Consolidate your printers and re-assess your managed print service model to reduce printing costs. 1.Very few organizations know their true printing costs. Discovering how much the company is currently spending on printing is the first step to achieving management buy-in for printer consolidation. 2.Visible management support is important to help drive a printing-aware culture. 3.Simply changing your managed print services pay model can result in large cost savings (i.e. level pay model to pay per click).

4. Info-Tech Research Group4 4 Case Study: Amy’s organization has saved 20-30% of total printing costs through printer consolidation Company Profile Industry: Education (School Board) Location: Canada IT Director “Amy” Implemented printer consolidation from 2012 - 2013 Cost savings so far: 20- 30% Anticipated cost savings: $500,000 over the next five years Cost savings are coming from two areas: 1.Consolidating purchases with a managed print vendor. 2.“We’re also finding that a lot of our savings are coming from not just printers. As we try to dispel myths and bring information related to printing, we’ve shone a spotlight on who’s printing and how much is being printed. And this has drawn a ripple effect and people are now more aware of what our printing costs are and choosing to print less.” Cost-Saving drivers You can’t manage what you can’t measure…We’ve finally managed to identify all of our costs and instead of buying toner one at a time, we now do a managed print contract with a vendor who buys a container-full at a time. “One of the things we’ve done a lot of work on is trying to gather information and dispel myths around printing. One of the myths we’ve discovered as we gathered information is this idea that staff have, that students are driving the printing costs. Actually, students are printing about 2% of the total volume. It’s really the staff and teachers printing on behalf of students that are driving the costs.” Interesting Findings

5. Info-Tech Research Group5 5 What’s in this Section:Sections: Section 1: Assess the current state Section 1. Assess the current state Section 2. Define printing requirements Section 3: Make the case Section 4: Develop a print strategy Section 5: Implement the action plan Section 6: Measure project success Inventory your printer fleet Calculate and analyze your printing costs Examine current organizational printing behavior

6. Info-Tech Research Group6 6 Most organizations don’t have an aggregate view of their printer usage and costs The biggest impact of printer consolidation has not been newer, shinier, print devices… I have way more information at my disposal now than I ever did before. Knowledge is power. What gets measured gets managed. - IT Director, Education Organizations can save as much as 65% of total printing costs through printer consolidation efforts. Unfortunately, most organizations are unaware of the savings potential. In most cases, nobody is responsible for managing the printers collectively, resulting in a lack of visibility into printing activity. Without this visibility, it’s difficult to muster executive commitment and support for printer consolidation efforts. The first step to consolidating your printers is to inventory all the printers in the organization and look at an aggregate view of the costs. Without understanding the cost saving potential, management will likely continue to avoid printer changes due to its unpopularity with end users.

7. Info-Tech Research Group7 7 Case Study: Aggregating printer costs is a difficult but crucial task Company Profile Industry: Education (School Board) Location: Canada IT Director “Amy” Implemented printer consolidation from 2012 - 2013 Cost savings so far: 20- 30% Anticipated cost savings: $500,000 over the next five years Aggregating printing costs involves a lot of investigative work. “When we approached our secretary treasurer and asked how to get a view of what’s going on in the admin office, he said ‘it’s going to be impossible because we’d have to go through every invoice individually. We do a lot of purchasing from places like Grand & Toy.’” Challenges I would challenge those who say that they have an aggregate view of printer costs. Give yourself a week – can you come up with a number? It took us about three months of analyst time part-time digging around, talking to administrative assistants, etc. to get actual costs. “When we sent the schools consolidated printing costs, they were surprised because printing was often decentralized inside the schools… the English department was buying its own toner, the math department was buying its own toner. When they realized that the English department was spending $1,000 a month on toner, it caused a lot of surprise. Aggregating printing costs created awareness around printing and helped to achieve buy-in for printer consolidation and drive a more print- conscious culture. Value achieved

8. Info-Tech Research Group8 8 Activity: Inventory your printer fleet Office Walk-Around Most organizations have no idea how many printers they have until they walk around the office and physically count them. This is especially true in cases where management is allowed to purchase personal printers and keep them at their desks. An office walk-around is often necessary to accurately capture all the printers in your inventory. Participants: IT Director IT Staff Steps: Methodologically walk around the office and determine the following for each printer: o Device type o Make, model, serial number o Location o Number of users supported o Device owner o Type of users supported (department, employee position) Record printer details in Info-Tech’s Printer Consolidation Tool. Go to Info-Tech’s Printer Consolidation Tool’s Inventory Tab to record your printer inventoryPrinter Consolidation Tool Collaborate with the accounting or purchasing department to determine the following for each printer recorded: o Purchase price/date o Monthly duty cycle o Estimated remaining useful life o Page count to date We did a walk-around of the 75,000 square foot office twice… and I looked at specific users to see if they hooked up printers that weren’t on the network. … I know all the nooks and crannies, and I think we captured them all. - IT Director, Manufacturing

9. Info-Tech Research Group9 9 Activity: Inventory your printer fleet Participants: IT Director IT Staff Purchasing Manager Steps: Ask your purchasing manager for purchase receipts, statements, and service records relating to printing. For documents found, match the printer with your physical inventory. Add any printers found that were not captured in the physical inventory count. Record the following: o Device type o Make, model, serial # o Location o Number of users supported o Device owner o Type of users supported (department, employee position) Collect Purchase Receipts/Statements/Service Records Double check your printer inventory by referring to purchase receipts, statements, and service records. Collaborate with the accounting or purchasing department to determine the following for each printer recorded: o Purchase price/date o Monthly duty cycle o Estimated remaining useful life o Page count to date Go to Info-Tech’s Printer Consolidation Tool’s Inventory Tab to record your printer inventory

10. Info-Tech Research Group10Info-Tech Research Group10 Activity: Calculate your printing costs Printer purchases only make up a small fraction of total printing costs. Operating costs typically account for 95% of total printer costs. Some other costs you should consider are: Paper costs Ink or toner costs Electricity costs Maintenance costs Participants IT Director IT Staff Steps Collect invoices, receipts, and service records to sum up the costs of paper, ink or toner, and maintenance for each machine. Estimate electricity costs. Record your costs in the second tab of the Printer Consolidation Tool. Go to the Costs tab in Info-Tech’s Printer Consolidation Tool to record your printing costs. Review the costs per page and per user to look for particularly expensive printers and understand the main drivers of the cost. Review your average monthly cost and annual cost per user. Do these costs surprise you?

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