SMBs in particular small business do not have IT expertise, they do not have IS departments and their main area of knowledge is their own business. If they are interested in IT at all, their main interest is in the vertical application they use. Very often they work with channel partners, suppliers that are able to provide them with an application and put a lot of expertise around that application, and they trust them as advisors for partner recommendations. That’s why it’s important to work with a large number of these small business resellers, that have the application knowledge and understanding and at the same time the proximity to small businesses.
The copier industry in the small to medium business space does largely work around direct presence, they still send their direct own reps into small businesses, which is very very costly, and someone is paying for the cost, and that is the customer. We don’t think that this is what customers should be doing. The second aspect of it is that the copier industry very often has a highly specialised channel because the copier products are by far not as reliable, this has something to do with the engine design, this has a lot to do with paper handling, and overall meantime between failure rates of these devices which are significantly higher and hence those products require quite a lot of break/fix services and on-site presence. So you put the two together – the product not being very reliable in any instances, service intensity and a large direct sales presence, coupled with a specialised channel that mainly focuses around servicing those devices, this is a very expensive model which makes the price for SMEs.
We wanted to disrupt this with a model which is more leveraging what we are seeing in the IT industry. First of all those devices use and engine which has proven reliability since 20 years, LaserJet engines which we develop in partnership with Canon show outstanding mean time between failure, outstanding duty cycles, they require almost no servicing, therefore our services pricing is very fixed, it’s very very low. These products are also easy to integrate into the network, easy to integrate into applications, driver support for HP LaserJets is available everywhere which at the end of the day means IT resellers are absolutely able to resell these devices because it’s basically built on the same philosophy and capabilities, and aloows you to cover SMBS with a model that is very effective that is bult around technology and reliability and provides you with the proximity to the SMBs with partners that understand SMBs very well. So it’s kind of really gamer changing because we’re bringing a completely different approach to SMBs and therefore to sum it all up with think SMBs will benefit from picking this model as opposed to the conventional copier model.