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The Hidden IT Tax in Your MPS Proposals (And How to Eliminate It)

  • Writer: Henrik Lundsholm
    Henrik Lundsholm
  • 3 minutes ago
  • 2 min read

In the Managed Print Services business, the cost of a contract is rarely what it seems on paper.


Dealers obsess over hardware costs, click rates, and toner yields. But there is a silent, unmeasured cost that eats into profitability before the first page is even printed: the IT tax.


The Friction of the Physical DCA


For years, the industry standard has been the physical Data Collection Agent (DCA). You sign a customer, and then you ask their IT department to install a background service on their network.


In a small, low-security environment, this might take a few days. But in enterprise, government, or high-security sectors? It is a massive red flag.


You are asking a network administrator to install a service that pings an external server 24/7. This triggers security reviews, compliance audits, and endless pushback. A deal that should have closed in a week suddenly stalls for months.


That delay is a cost. The time your technical team spends arguing with their IT department is a cost. And the friction you introduce into the customer relationship right at the start? That is the biggest cost of all.


Treating SMBs Like Enterprise


The irony is that we often force this enterprise-level IT footprint onto small, 10-device SMB customers.


When you force a physical DCA onto a small business, you are burning your margin. You are asking your service desk to navigate unknown local firewalls and troubleshoot connection drops every time their local server goes to sleep. You end up treating a 10-device account with the same heavy IT overhead as a 500-device enterprise.



The Service Margin Trap


The IT tax does not stop at deployment. It bleeds into your ongoing operations.


When a physical DCA loses connection because of a local network change, your backend drops the data. Suddenly, your service operation becomes reactive. You end up sending highly-paid technicians out on service calls just to check a status, clear a basic error, or verify a supply level.


You are treating your technical experts like expensive data checkers. If your MPS backend cannot give you instant visibility without a physical footprint on site, it is actively eating your margins.


Eliminating the IT Tax with DCA-Less Deployments


The physical DCA is a legacy tool. It is an audit mechanism masquerading as an operational standard.


The future of profitable MPS lies in DCA-less deployments. By utilizing direct API connections (CSP) and connecting directly to the manufacturer cloud, you bypass the local network friction entirely.


Zero Background Services:


  • No software to install, no firewalls to configure.

  • Instant Onboarding: Connect and start managing devices immediately.

  • Total Control for High Security: For environments that demand it, Selective Sync models allow offline collection and visual payload inspection, giving IT admins total control over what leaves their network.


Stop fighting IT administrators. Stop letting hidden IT costs erode your margins. By modernizing your deployment model, you can transition from a legacy hardware provider to a strategic, frictionless partner.


And that is where the real profit lies.

 
 
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