New InfoTrends Forecast Indicates That Solutions are Fueling the Office Equipment Market18 Sep, 2007
New InfoTrends Forecast Indicates That Solutions are Fueling the Office Equipment Market
Weymouth, MA - InfoTrends’ new Network Document Solutions forecast estimates that the overall office document solutions market will show a compound annual growth rate (CAGR) of 27% by 2011, with total revenues reaching $2.1 billion. This growth incorporates all revenue categories including software licenses, professional/support services, software maintenance, and installation services.
Software maintenance will experience the most growth with an expected CAGR of 45% by 2011. Growth in this area is to be expected, as customers are maintaining these solutions for years after purchasing their initial software license. Professional services is experiencing more notable growth than it has in previous years with a CAGR of 35%, as more companies are charging for services such as consulting, installation, and post maintenance throughout the life of the solution.
Although many dealers understand that solutions should be an integral part of their strategy, most are still in the process of figuring out how to incorporate them into their range of offerings. In addition, their propensity to fall back on the hardware products that they are used to selling is hindering them from migrating to the next level and fully embracing the true solutions sale.
Nevertheless, within the office equipment market, hardware is becoming more difficult to differentiate; it is becoming a more replaceable commodity, and vendors are dropping their margins at a consistent rate to remain competitive.
“Other disruptive technologies and printer-based products are driving traditional laser-based MFP prices down, making it more and more difficult for equipment vendors and dealers to achieve a profit,” commented Randy Dazo, a Director at InfoTrends. “Therefore, solutions and professional services have become the Holy Grail of the office equipment market, as they can be a huge differentiator in a hardware sale.”
A solution can be customized to fit within a customer’s workflow or environment to solve a problem or facilitate a task. It can improve a business process and increase the user’s productivity, and it can also create new business opportunities that can improve a company’s bottom line. Lastly, a solution can help a company achieve compliance and maintain undisrupted business operations. These attributes make solutions much more difficult to replace than a nondescript piece of hardware, and this is something that customers are willing to pay for.
InfoTrends new forecast, U.S. Network Document Solutions Forecast: 2006-2011, quantifies and defines the current state and future growth prospects for installation services, software applications, and professional consulting/implementation services being marketed with and around networked office equipment in the United States. The data focuses specifically on the new class of software-based solutions that are targeting ad-hoc workgroup processes. These solutions can effectively integrate with workgroup-class networked copiers, printers, fax machines, and scanners.
The complete forecast is available immediately to clients of InfoTrends’ North American Network Document Solutions Consulting Service. For more information about the forecast or to make a purchase, visit our online store or contact Nicole Shown at +1 781 616 2100 ext. 123 or email@example.com.
To learn more about office document technology, reserve your spot today at InfoTrends' European Office Document Technology Forum and Office Document Technology Forum. Space is limited so act now! For more information on these two events contact Susan Hickey at +1 781 616 2100 ext. 114.
InfoTrends, a Questex company, is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industry. We provide research, analysis, forecasts, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. Additional information about InfoTrends is available on the Web at www.infotrends.com.