[ Cutting Edge ] The forest for the trees

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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.

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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.