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[ Cutting Edge ] The forest for the trees
2 0 D E L L I N S I G H T M A R C H 2 0 0 4
by Vicki Van Ausdall
M A R C H 2 0 0 4 D E L L I N S I G H T 2 1
The forest for the trees [ Cutting Edge ]
The paperless office, predicted by
futurists in the 1970s, prom-
ised efficiency, productivity, cost-
effectiveness, and a new way of
doing business for the twenty-first
century. The message: Prepare for
change because the paperless office
is almost upon us.
So where is it?
At least today, the paperless office is
little more than pulp fiction. In reality,
paper still reigns supreme, even amidst our
dependence on the digital world—the Internet, elec-
tronic mail, PCs, PDAs, and faxes. In fact, it almost appears that
paper is increasing faster than digital technology can eliminate it.
In today’s world, the paperless office is a myth. In fact, in 2001
Abigail J. Sellen and Richard H.R. Harper devoted an entire book
to the subject: The Myth of the Paperless Office. A glance around
your desk, your inbox, and your mailbox will likely corroborate
this: You can’t escape paper. According to Bill McCalpin, general
manager at Xplor International, The Electronic Document Systems
Association, “Even as document communications are being shifted
to electronic delivery channels, based on data developed by The
Electronic Document System Foundation (EDSF), Xplor believes
that the total number of sheets of paper consumed in the U.S. will
increase by as much as 30 percent over the next 10 years.”1
Our love affair with paper has us creating and printing more
documents than ever before—not just letters and memos, but
proposals, reports, engineering and architectural drawings,
charts, forms, booklets, presentations, requests for proposals,
graphics, e-mail, and Web pages.
And after we create and
print these documents, we
often need to keep them. In
many industries—such as
government and finance—legal
requirements dictate that corpo-
rations maintain paper copies
of certain types of documents,
such as those with original
signatures and some for either
certification or notarization. Industry
regulations, such as the Sarbanes-Oxley
Act and the Health Insurance Portability and
Accountability Act of 1996 (HIPAA), are just two exam-
ples of mandates that cause corporations to generate and retain
so much paper.
The dollars and sense of printing
When figuring budgets that include significant hardware and
software investments, payroll expenses, and real estate costs,
paper might seem like the least significant expenditure in your
enterprise. But consider that every employee in every office in
your enterprise is using your printers to generate hundreds or
thousands of documents every month. If you’re like most IT
decision makers, you’ve scarcely thought about the dollars that
an aging or poorly managed printer fleet is sucking out of your
budget—let alone conducted any formal analysis of this incredi-
ble cost center that is right under your nose.
The persistence of paper and printing has an enormous impact
on the enterprise IT infrastructure. “Through 2008, enterprises
will spend between 1 percent to 3 percent of their revenue on
We’re printing more documents than ever. But when it comes to the cost of all this printing,sometimes it’s hard to see the potential savingsthat are right in front of our eyes
[ Cutting Edge ] The forest for the trees
2 2 D E L L I N S I G H T M A R C H 2 0 0 4
document output”2 for func-
tions such as copying, scan-
ning, and faxing. That can
equal a whopping $30 million
dollars for a $1 billion company.
Although printing is critical to
business operations, it often does
not make the top 10 list of priorities
for the IT department. But if savvy IT and
executive managers turn their attention to the
printer fleet with the same intense focus on return
on investment (ROI) that they apply to the rest of the IT
infrastructure, they can squeeze efficiencies—and ultimately
savings—from printers. For just a glimpse of how substantial the
savings might be, see the chart on this page.
Time to revamp
During the economic downturn of the past few years, IT directors
have scrutinized highly visible parts of the data center—namely
servers and storage—but office printing has remained a hidden
cost to most. In fact, many IT directors would find it difficult to
list the number of printers that reside across the corporation,
where they are located, or who uses them and for what purpose.
They simply have not grappled with the total cost of ownership
(TCO) of office printing.
But a serious investigation of the printer fleet has the
potential to yield savings. According to Gartner, Inc., “Through
2008, enterprises that actively manage their document output
fleets will be able to save between 10 percent and 30 percent of
their recurrent spending.”3 Of course, to trim print costs requires
the same focus on the printer fleet that has been applied to
managing the IT infrastructure to reduce TCO and increase ROI.
From an IT perspective, this is no easy task. Over the years,
printers have often been under the auspices of individual
departments rather
than IT. In larger
enterprises, IT may
support network
printers and provide
user support, but the
procurement depart-
ment manages supplies
and services. Add to this
the facilities management
group for tracking assets and
space costs, and the picture becomes
even more complex. It also is not unusual for networks to have
unaccounted-for inkjet and laser printers that were acquired
and installed under the radar of corporate controls.
To unravel this complexity requires some due diligence on the
part of the IT director. And comparing what you have with what
you should have could yield quite a stark contrast.
Out with the old…
In most organizations, printer fleets grow unchecked into a
curious hodgepodge, and the lack of printer standardization
across the enterprise is a major contributor to excessive costs.
Legacy printers often come from diverse manufacturers and
represent various vintages—which equals increased administra-
tion, increased inventory for supplies, print-drive management
issues, and additional support for connectivity issues. This
diverse printer population also leaves to speculation the real
utilization of the printer: Is it underutilized, overutilized, or even
necessary in its current role?
Another factor is the aging printer fleet. Although the
average lifespan of a laser printer is three to five years, it’s not
uncommon for organizations to keep their printers in use for
several more years. Like most equipment, older models tend to
Company size Annual print spending Savings opportunityannual revenue ($ in millions) ($ in millions) from 10% to 30% annually ($ in millions)
$500 $5 to $15 $0.5 to $4.5$2,000 $20 to $60 $2 to $18$5,000 $50 to $150 $5 to $45$10,000 $100 to $300 $10 to $90$20,000 $200 to $600 $20 to $180$50,000 $500 to $1,500 $50 to $450
Source: Gartner, Inc. Best Practices for Copier, MFP and Printer Fleet Management by Ken Weilerstein. November 21, 2003.
break down more frequently. In addition, they will not have all
the functionality of more-recent models, which not only limits
productivity but may also cause headaches for the network
administrator.
These two factors alone—not to mention soft costs such as
network management or number of users assigned to a printer—
affect the TCO of your fleet.
…And in with the new
Laser printers are popular because of
their quality output and cost-saving
features. But if you have not yet
explored the newest models on the
market today, you might be
surprised by how small, fast, and
multifunctional they are. Networked
monochrome print speeds reach up to
45 pages per minute (ppm), and power-
ful processors enable printers to handle
larger, more-complex print jobs compared
to printers just five years ago. End users can
do more work faster with fewer workgroup print-
ers—good news for those tasked with increasing
employee productivity.
Other features now available can translate into potential savings:
• Duplexing can help reduce paper costs.
• High-volume print capacities mean more end users per
printer—and fewer printers.
• An increase in toner cartridge capacities means lower
costs per page—depending on the coverage of ink required.
• Management software provides the ability to remotely
monitor the network printer fleet, which saves both time
and resources.
• Toner cartridge recycling programs may help
reduce disposal fees and other associated costs.
• Laser printers with the U.S. government
Energy Star label provide savings not only in
electricity, but also in maintenance and printer
longevity (visit http://energystar.gov for tools
to help calculate potential savings).
• The cost of color laser printers has dropped
dramatically over the past few years, enabling
specialized workgroups to print in color—
which even a year ago may have not been an
option because of price.
The forest for the trees [ Cutting Edge ]
Reduce your printer TCO with Dell
When the time is right to review your printer fleet, the Dell™ WorkgroupLaser W5300n and the Dell Workgroup Laser M5200n—the latest modelsin the Dell printer family—are worth more than just a glance. With thelatest in technologies and features, these printers offer high performance, flexi-ble media options, networking capabilities, and easy management. Plus, theycome with the award-winning service and support from Dell that can make adifference to the bottom line.
Some features that are standard in both printers offer cost savings and increaseuser efficiency. For example, duplexing—two-sided printing—not only helps to savepaper costs, but it also can lower postage costs and even reduce file space. Withincreased paper tray capacities of up to 2,600 sheets, users make fewer trips tothe printer to change the paper trays—a savings in both time and money.
Optional toner cartridges that yield up to 27,000 pages per cartridge on theW5300n and 18,000 pages per cartridge on the M5200n can helpto lower the cost per page for printing—again, lessstaff time needed for changing the cartridges.And the other good news about cartridges:Both printer models can share the tonercartridges and paper trays, which helps to standardize the office printer fleet.
The Dell Printer Web Tool offers direct one-to-one management of printersin the network via a Web-based application that provides printer status. It alsosends e-mail notifications about events such as paper jams or a lack of toneror paper. The tool provides asset tag and management statistics, including thenumber of pages printed and the type of paper used.
These Dell printers are Energy Star—compliant to save energy costs—anotheroften-overlooked area for savings. They have a built-in sleep mode that cansignificantly cut electricity usage, particularly if you have a large number ofprinters. Not only that, but they also operate at a cool temperature, whichgives them a longer lifespan with less maintenance.
Convenience and support are paramount because of the hefty usage ofprinters by nearly every user in offices today. With e-mail alerts about low
toner, tools for remote configuration and management,24/7 toll-free technical support, same-day or
next-business-day on-site service options,and extended service options available
up to four years, Dell enterpriseprinters give you a complete
package to achieve thatsometimes-elusive low TCO.
M A R C H 2 0 0 4 D E L L I N S I G H T 2 3
[ Cutting Edge ] The forest for the trees
Defining a printer strategy
IDC calls it a document accounting strategy (DAS). Others refer to
it as enterprise document assessment, office document assessment,
or simply rightsizing the printer fleet. Regardless of the name,
it represents a methodical approach to understanding your current
printer assets before building a long-term strategy for your printers.
An internal IT department can perform the analysis or it can be
outsourced to an independent consultant or solutions provider.
Regardless of the approach, understanding your information flow
and your current printer inventory will enhance your ability to
make cost-effective decisions. Once you have a handle on it, pay
a visit to the CFO.
At a college campus in Texas—Houston Community
College–Southwest—Roland Fields performed printer fleet
assessments. To Fields, a technician supervisor, one of the most
important factors to consider when reevaluating the printer fleet
is service and support.
“Nothing is more important to us than warranty,” says Fields,
“so we chose Dell M5200n printers. In our experience, it’s really
difficult to get service when you need it. Getting a printer fixed
may take as long as a week or two—consuming lots of staff time
in the process. With our Dell four-year warranty, we just look up
the warranty status of the specific machine on the Dell
Web site. We call Dell support, and the tech-
nician comes out and services the
machine by the next business day.”
Fields continues, “Dell’s
printer performance is as good
as any other printer on the
market in its class and its
price is better than some
competing printers.”
More than just ink on paper
Despite all of the digital technology available today, paper
remains the medium of choice for working with information.
Paper is cheap, thin, light, flexible, and porous. It stacks neatly
on our desks and folds to slip inside our pockets. The qualities
of paper almost ensure its survival and stave off the paperless
office—forcing enterprises to understand that rightsizing the
printer fleet is part of the equation for saving time, money,
and resources.
For IT decision makers, bleary-eyed from years of budget
cuts, the printer fleet might be a source of savings not yet
considered. And although a thorough investigation will require
a time investment today, it is clear that the savings gained from
rightsizing the fleet outweigh the investment in document analy-
sis and printer purchases. And once you’ve assessed the fleet
and seen the forest right in front of your eyes, you just might
be surprised to see the money that grows on those trees.
The Dell Workgroup Laser W5300n, the most powerful monochrome laser printer from Dell,
has built-in networking capabilities and offers a print speed up to 45 pages per minute (ppm) with
crisp 1200x1200 dpi resolution. The Dell W5300n is rated for a duty cycle of up to 225,000 pages
monthly and comes with USB and 10/100 Ethernet interfaces and both 250-sheet and 500-sheet
paper drawers.
The Dell Workgroup Laser M5200n can print up to 35 ppm at 1200x1200 dpi. Rated for a
duty cycle of up to 175,000 pages per month, it comes with USB and 10/100 Ethernet interfaces
and both 250-sheet and 500-sheet paper drawers.
2 4 D E L L I N S I G H T M A R C H 2 0 0 4
For more information:In U.S.: www.dell.com/printers
In Europe: www.euro.dell.com
In Asia: www.dell.com/ap
1 www.xplor.org2 Gartner, Inc. Right-Sizing: Put Your Document
Output Fleet on a Diet by Ken Weilersteinand Sharon McNee. October 20, 2003.
3 Ibid.
As a value add, Dell now offers TCOP (total cost of printing)analysis at no charge to its customers. For more information,contact your Dell account representative.