<b>Technology Uses & Costs</b>: Reducing the Cost Of MFD Cost Recovery

[Editor's Note: Last month's article by Todd Nugent on improved cost recovery from multi-function devices alluded to savings made possible by embedded technology. This article elaborates on the advantages of embedded processing.]

Many law firms are replacing legacy printers with multi-function devices (MFDs). These machines not only print 40 or 50 copies per minute, but also copy, scan, and fax. All these functions require some type of cost capture.

While the first MFDs supported scanning, printing and faxing, manufacturers fell short in attempting to make their own enabling applications such as cost recovery. These companies therefore opened up their MFD operating environment to let third-party vendors provide embedded software applications. A few copier manufacturers pursued an XML strategy, but most ' including Ricoh, Canon and HP ' are using Java (or a Java variant), which provides incredible control on the copier control panel.

Early examples of embedded third-party applications include scanning solutions by Omtool and eCopy, for Xerox and Canon copiers respectively. Some recent models such as the HP 4345 can support embedded cost control.

Cost Savings Via Embedded Cost Recovery

An embedded solution means that you need not buy external hardware, drop a separate network line or power drop, find a convenient wall or table to put them on, or place a service call for a defunct terminal.

As the accompanying table illustrates, the cost savings from eliminating auxiliary devices are hard to ignore. The table below shows a hardware vs. embedded cost recovery cost comparison based on industry average retail prices, and excluding separate maintenance and support agreements. The 10-year cost comparison assumes a 5-year terminal replacement cycle.

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Embedded software also saves the hours and expense of auxiliary hardware installation. The Ricoh embedded solution, for example, can be up and running in a matter of minutes. Moreover, software licenses can later be transferred easily to other machines.

The comparison in the table is not strictly apples to apples, of course: While more functional than a terminal box, embedded software is less functional than a PC. But in order to count copies, scans or faxes, you mainly just need to enter user and billing codes and perhaps short descriptions. Why use an expensive separate unit when embedded software can accomplish the task quite nicely?

One challenge for some cost recovery users is that panel display support is now limited. Next-generation copiers will offer such features as a large color touch-screen, along with more processing power.

Selecting an Embedded Application Provider

When seeking an embedded application provider, consider:

• Vendor expertise. Third-parties developers that do cost recovery for a living can be expected to do it better than MFD manufacturers offering homegrown cost recovery applications.
• References. Be sure to ask for a list of references for your specific MFD manufacturer solution. Since embedded solutions are still in the early stages of the product life cycle, some vendor offerings may not be fully developed or deployed.

Summary

Real-world examples of cost savings and return on investment are quickly becoming more commonplace. Within the past 18 months, many law firms have embraced the embedded value proposition, vowing never to buy another hardware tracking device. One Am Law 200 firm realized Year 1 cost savings exceeding $90,000 by replacing its hardware terminals with embedded cost recovery software licenses.

[Editor's Note: Last month's article by Todd Nugent on improved cost recovery from multi-function devices alluded to savings made possible by embedded technology. This article elaborates on the advantages of embedded processing.]

Many law firms are replacing legacy printers with multi-function devices (MFDs). These machines not only print 40 or 50 copies per minute, but also copy, scan, and fax. All these functions require some type of cost capture.

While the first MFDs supported scanning, printing and faxing, manufacturers fell short in attempting to make their own enabling applications such as cost recovery. These companies therefore opened up their MFD operating environment to let third-party vendors provide embedded software applications. A few copier manufacturers pursued an XML strategy, but most ' including Ricoh, Canon and HP ' are using Java (or a Java variant), which provides incredible control on the copier control panel.

Early examples of embedded third-party applications include scanning solutions by Omtool and eCopy, for Xerox and Canon copiers respectively. Some recent models such as the HP 4345 can support embedded cost control.

Cost Savings Via Embedded Cost Recovery

An embedded solution means that you need not buy external hardware, drop a separate network line or power drop, find a convenient wall or table to put them on, or place a service call for a defunct terminal.

As the accompanying table illustrates, the cost savings from eliminating auxiliary devices are hard to ignore. The table below shows a hardware vs. embedded cost recovery cost comparison based on industry average retail prices, and excluding separate maintenance and support agreements. The 10-year cost comparison assumes a 5-year terminal replacement cycle.

[IMGCAP(1)]

Embedded software also saves the hours and expense of auxiliary hardware installation. The Ricoh embedded solution, for example, can be up and running in a matter of minutes. Moreover, software licenses can later be transferred easily to other machines.

The comparison in the table is not strictly apples to apples, of course: While more functional than a terminal box, embedded software is less functional than a PC. But in order to count copies, scans or faxes, you mainly just need to enter user and billing codes and perhaps short descriptions. Why use an expensive separate unit when embedded software can accomplish the task quite nicely?

One challenge for some cost recovery users is that panel display support is now limited. Next-generation copiers will offer such features as a large color touch-screen, along with more processing power.

Selecting an Embedded Application Provider

When seeking an embedded application provider, consider:

• Vendor expertise. Third-parties developers that do cost recovery for a living can be expected to do it better than MFD manufacturers offering homegrown cost recovery applications.
• References. Be sure to ask for a list of references for your specific MFD manufacturer solution. Since embedded solutions are still in the early stages of the product life cycle, some vendor offerings may not be fully developed or deployed.

Summary

Real-world examples of cost savings and return on investment are quickly becoming more commonplace. Within the past 18 months, many law firms have embraced the embedded value proposition, vowing never to buy another hardware tracking device. One Am Law 200 firm realized Year 1 cost savings exceeding $90,000 by replacing its hardware terminals with embedded cost recovery software licenses.