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2002-2007 U.S. Office Document Solutions Support: <i> Estimates and Forecast</i>

21 Apr, 2004 By: CAP Ventures imageSource

2002-2007 U.S. Office Document Solutions Support: Estimates and Forecast

Office Document Solutions market represents a new and growing niche within the
broader market for information technology. This new market is an extension from
the traditional office equipment market, which has evolved rapidly in recent
years, particularly since the introduction of networked MFPs like digital

Ventures believes that the office document solutions market will grow from $187
million in 2002 to almost $864 million by 2007, representing a compound annual
growth rate (CAGR) of 30%.

Ventures’ forecast quantifies and defines the current state and future growth
prospects for office document solutions. The market estimate and forecast data
focuses specifically on new software solutions targeting ad-hoc workgroup
processes that can effectively integrate with workgroup class network copiers,
printers, fax machines, and scanners.

market represents a young and undefined segment within the broader information
technology industry," commented Joel Mazza, a Director at CAP Ventures. "By
understanding the numbers and trends in this forecast as well as long-term
revenue targets, industry players can better comprehend what they need to do to
be successful and drive sustainable, long-term growth and profitability for
their businesses."

Revenue Categories

The forecast include three primary revenue categories for installation services,
software licenses, and support and integration services.

• Installation Services – Installation Service
Revenue includes services above and beyond the physical setup of a device. Often
billed as a maintenance charge, this is the connection to and validation of
proper network functionality and the services needed for initial operation.

• Software Licenses – The Software utility category refers to revenue generated
through the sale of seat licenses for office-oriented document management
software applications. This includes enhanced versions of "light" or "express"
utilities, which are sold for a license fee, and modules or software
specifically designed for document output and cost management. Representative
examples of document-oriented software applications in this market include the
eCopy ShareScan Suite, Xerox's DocuShare 3.0, or Ricoh's Global Scan. For this
category, we are primarily tracking applications that target specific
document-oriented solutions.

• Support & Integration Services – Software support & integration services
include a combination of continuous support of a network piece of office
equipment, including add/move/change orders that occur in a networked
environment, as well as value-added support for document management on the
network. This support will include some value-added services to enable support
of mixed network environments (i.e. AS/400, UNIX, Linux, etc.), as well as
ongoing consulting, integration, and deployment services for document-oriented
applications and issues (such as ERP, hardcopy, and soft copy output

Overall, these services will experience upward growth with software licensing
demonstrating a 37% CAGR between 2002 and 2007 and integrations services
experiencing a 30% CAGR over the same period.

Distribution Channels

The forecast includes segmentation splits by distribution channel, including six
primary channel categories. These categories include facilities management
companies, independent dealers, megadealers, direct sales organizations, PSO/Systems
Integrators, and value-added resellers (VARs). Facilities management companies
currently capture the largest share of solutions revenue. These companies
accounted for approximately $79.4 million in 2002 and are expected to reach
$256.2 million by 2007, demonstrating a CAGR of 26%. At this stage of market
development, all channels are forecasted to achieve robust growth, due in large
part to the small size of the market and customer demand that currently exceeds
the industry’s capacity to supply.

document has been abstracted from the CAP Ventures forecast entitled “2002-2007
U.S. Office Document Solutions Support: Estimates & Forecast,” which details the
2002 - 2007 estimates and forecast of solutions, services, software, and support
in the network document solutions market space. For more information about this
and other CAP Ventures forecasts, contact Stewart MacDonald at (781)- 871-9000
ext. 175 or

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