Taking MFP Applications in the Of ce to the Next Level

Transcription

1 Information best Whitepaper Taking MFP Applications in the Of ce to the Next Level A White Paper on Konica Minolta s bizhub Extended Solution Technology (best) Software Development Platform for MFPs

2 Introduction This white paper has been prepared on behalf of Konica Minolta Business Technologies by Bissett Communications, publisher of THE MFP REPORT newsletter. It updates a previous white paper ( Leveraging the Of ce MFP Software Opportunity: A Technical and Marketing White Paper on Konica Minolta s OpenAPI MFP Software Development Platform ) released in March The initial white paper coincided with Konica Minolta s announcement in Europe of OpenAPI, the company s rst Web services application environment designed to enable development of server-based applications that interact with networked Konica Minolta bizhub multifunction peripheral (MFP) devices in of ce environments. Signi cant changes in the MFP marketplace and in Konica Minolta s software technology have occurred since OpenAPI debuted, and more changes are expected in coming months. These changes warrant a more current assessment. In particular, this updated white paper coincides Konica Minolta s release of its new bizhub Extended Solution Technology to selected software partners and sales companies. best encompasses, extends and supersedes the original OpenAPI platform in order to provide a richer set of programmable services and control panel presentation capabilities. Meanwhile, the market for MFP software tools has expanded dramatically in terms of the number of participating MFP manufacturers, the level of interest among independent software vendors, the breadth of MFP manufacturers software tools and partnering programs, and the receptivity of customers and sales channels to MFP-related solutions and applications. Brian Bissett Bissett Communications Corporation 28 September

3 Index 4 discusses the relevance of MFP software platforms, such as Konica Minolta s best, from the perspective of MFP customers, independent software developers and system integrators, direct and indirect MFP sales channels, and the MFP vendors themselves. 6 provides a historical review of the MFP solutions marketplace, highlighting the convergence between content management and MFP-based document capture as an important catalyst for the development of MFP software platforms. 7 considers MFP software development platforms in greater depth, including the relative merits of the two main technical approaches. Also assessed are key business considerations regarding the way in which MFP vendors bring their software tools to market and how they partner with independent software vendors. 13 describes and assesses more speci cally Konica Minolta s best software platform, including the transition from OpenAPI to best, the components and capabilities of best, the connection between best software and bizhub hardware, and Konica Minolta s continuing plans for best. This section also compares best to competing MFP development platforms. 17 focuses on Konica Minolta s evolving and expanding business strategy for disseminating, promoting and leveraging best in the marketplace, comparing such plans and strategies to those being pursued by key MFP competitors. 18 concludes with an overall assessment of best, its competitive strengths and challenges in the market, the progress Konica Minolta has made since developing OpenAPI, and the opportunities Konica Minolta faces in the continually changing world of MFP software applications. This white paper addresses Konica Minolta s plans for best on a worldwide basis. While the technical description and discussion of best, as well as the contextual discussion of the MFP market, are applicable to all geographies, Konica Minolta will pursue somewhat different business strategies for best in each of its key global marketplaces

4 Why an MFP Software Platform? As is often the case with new technologies such as MFP software platforms there is a tendency to presume that the uses and bene ts of those technologies are self-evident. In realty, this is seldom the case. It is particularly important when discussing best and other MFP software tools to distinguish among the different groups that are affected and how these audiences may bene t. There are four key constituencies most affected by Konica Minolta s best: customers who purchase MFPs and may wish to use related software applications developed to work with best; software development partners who create or integrate MFP-linked solutions using best; direct and indirect sales channels that sell MFP hardware and complementary software; and Konica Minolta itself as an MFP vendor and the developer of best. A. MFP Customers Every business knows what a copier or printer is, and nearly every organization has made the transition to using some form of shared MFP. An increasing number of organizations some studies show gures as high as 70% now scan with MFPs. In the process, MFPs are helping rede ne the way of ces capture, digitize, store and manage paper documents. A much smaller number of organizations have experience using MFPs that are tightly integrated with business software applications, although this situation is changing rapidly. One widelyquoted forecast holds that half of all of ce MFPs to be sold in the next few years will include some kind of complementary software solution. For this reason, those who buy, use and manage MFPs need to understand the role of Konica Minolta s best technology. B. Independent Software Developers and Systems Integrators For independent software vendors (ISVs), MFP software tools enable new of ce imaging capabilities that can provide added value for current customers and help attract new prospects. This can help ISVs increase sales and gain new revenue streams. In addition, certain attributes of a vendor s MFP software platform and the vendor s software partnering program may together make it possible to appeal to a broader range of development partners beyond ISVs, including systems integrators, IT resellers, and in-house corporate software developers. For end users who will have hands-on interaction with MFP-linked applications, it is important to understand how MFP software tools can enable new and useful document solutions that provide tight integration, exible personalization, and functional simplicity. For executives making purchase decisions on imaging devices and software, such solutions can leverage an existing investment in MFP hardware while enabling wider deployment of new document applications that can provide tangible return on investment. And for IT managers who are charged with installing and supporting these new solutions, it is critical that they understand which MFP software environments are best able to foster applications that are easy to deploy, straightforward to manage, and secure when used

5 C. MFP and Solution Sales Channels Those who sell MFPs whether they work for an of ce equipment dealer, a direct sales branch, an agent or an IT reseller are nding that software is increasingly an essential component. Vendors are aggressively promoting software as the lynchpin in their emerging solutions strategies, and customers are increasingly demanding far more value than can be provided by networked MFPs alone. Salespeople will seldom promote a toolset such as best in the course of their normal selling activities. In fact, best does not necessarily need to be discussed in many sales situations. Far more critical to the sales channel will be the number and scope of software partners and applications that a manufacturer supports with its platform, and the quality and effectiveness of the partner program the manufacturer has implemented. D. Konica Minolta Lastly, MFP manufacturers have their own particular set of interests as regards their respective software platforms. Konica Minolta s view on the role of applications based on the best technology continues to evolve. The company is focused on developing two kinds of solutions. The rst are low-cost utilities and applications that address simple but common user needs. Examples would be a packaged communication server or a basic follow-me printing capability. The second kind of application encompasses more sophisticated connectors that link bizhub devices to customers existing line-of-business software. In both cases, Konica Minolta is focused on providing solutions that drive additional hardware sales, increase device usage and enhance product differentiation. Secondarily, applications sold directly by Konica Minolta to end users can generate new revenue. Successfully selling MFP software, such as bestenabled applications, requires more initiative on the part of a sales organization and the individual salesperson. Traditional selling tactics and compensation plans may also need to be revisited. In addition, MFP sales organizations may nd new competition emerging from IT resellers and high-end solutions providers in selling certain applications. However, those in MFP sales channels who are up to the challenge, and who are best supported by their manufacturer, will nd new rewards enabled by platforms such as best. In addition, there may be more opportunity for collaborative partnerships between MFP sales channels and system integrators or consultants. - 5-

6 Software and Solutions in an MFP Market Context Multifunction peripheral devices, or MFPs, are hardcopy devices that connect to an of ce network and provide two or more functions among printing, scanning, copying and fax. The vast majority of networked MFPs in of ces are toner-based machines, although solid ink and liquid inkjet of ce MFPs have emerged in recent years and may become more important over time. While nearly all of ce MFPs were monochrome just a few years ago, the transition to color MFPs in the of ce is moving rapidly, and an increasing number of MFPs with monochrome output now feature color scanning. Three-quarters of new monochrome digital copiers and virtually all color copiers are used as MFPs. In fact, it is becoming the norm for some type of network printing and network scanning to be standard in the base con guration of an MFP. This is already the case on nearly all color MFPs. Consistent with this trend, the volume of prints continues to grow in both absolute and relative terms, versus a declining volume of copies. And with the rapid shift toward color MFPs, the volume of output is skewing even more toward printing and away from copying. This does not mean the of ce imaging market has reached a steady state. In fact, the MFP market is in the midst of a transition that is even more striking, dynamic, complex and challenging than was the arrival of multifunctionality. This is the transition from MFPs being simple networked peripherals that are used foremost for printing, to the emergence of MFPs as a software platforms or portals on or through which a variety of document applications are accessed by of ce workers. While most of these emerging applications relate to document capture, other MFP applications are tailored to the needs of vertical markets, such as education, legal, government and nance. And some MFP applications leverage the core print function of the device. There is also growing interest in software and systems that collect, track, report and charge for usage of MFPs; control access to MFP functions and features; and personalize the MFP experience for individual users, teams, groups, departments, or clients. Whereas the rst wave of multifunctionality was driven by printing, this new era is driven primarily by scanning. Simple but powerful scan to capability rst gave credibility to networked MFPs as document capture devices more than a decade ago. In recent years, MFPbased scanning has bene ted from several mutually reinforcing trends. These include: rising interest in document management; regulatory and disaster recovery concerns; increased availability of content management applications; the spread of distributed capture as imaging installations grow; legitimacy for fulltext search as a result of Google and Internet search; and rising interest in content management from leading IT vendors, including Microsoft, Oracle, EMC and IBM. Meanwhile, the quality, speed and capabilities of the scan function on of ce MFPs have all improved. For a long list of reasons, customers nd today that MFPs can be excellent document scanners. The shift toward color MFPs is further increasing the demand for scanning, even as the role of copying and fax decreases. What vendors, software companies and end users now seek is a powerful but exible array of scanning choices that integrate MFPs into of ce work ows and provide a personalized user experience at the device, while still maintaining the historic green button simplicity of copiers

7 Approaches to MFP Application Development A. The Evolution of MFP Software The functionality required for printing documents has been well de ned for many years. Print drivers are part of the operating system. Printer vendors, printing technology suppliers and industry bodies have speci ed the requirements for printing any document in any environment, for administering print devices, and for managing the entire printing process. As a result, MFP vendors have had only a few areas on which to focus new print-related software development. That emphasis has been largely on improving realworld print speeds under a variety of conditions and creating better software for installing, monitoring and managing the MFP print function. Secondarily, vendors have worked to extend MFP-based printing into certain higher volume applications, particularly variable data printing, forms printing, transactional data printing, and print-on-demand publishing. Conversely, the opportunities and challenges in MFPbased scanning have been far less developed until more recently. Moreover, there is a critically important difference between network scanning and network printing that must be appreciated. Printing entails receiving from computers a stream of existing data, along with the instructions on how to portray the data on paper. It is essentially a passive or deterministic process. In contrast, scanning engenders creating data in the form of document images, designating where these images are to be sent, and specifying what is to be done with them. At its core, scanning is a proactive process. When scanning on MFPs emerged in the 1990s, scanning protocols (e.g., TWAIN) presumed that a scanner was always attached to and controlled by a PC. A driver was supplied by the scanner vendor or the application developer. Users could then pull images from the scanner to the PC from within the target application and then immediately determine what to do with those images. The challenge presented when scanning on a networked MFP is that there is no direct connection between the MFP and the user s computer. Vendors rst attempted to address this challenge by mimicking the PC scanning model. A user could reserve the MFP from an application on his PC, walk over to the MFP, and then scan some pages. Alternatively, the user could scan a document on an MFP and store the images inside the device or in a folder on the network. In both cases, it was not possible to associate descriptive data with the images, which meant that the user subsequently had to locate, retrieve and redirect the images to the intended application or destination. Equally importantly, early MFP scanning solutions offered little in the way of security when it came to authenticating, tracking or controlling use of the scan function. Vendors rst worked to improve the user experience for sending scanned images directly from an MFP as attachments to messages. This capability addressed a need that customers had not previously articulated but which provided tangible value. Scanning to helped dramatically increase interest in ad hoc document image capture using MFPs. Today, mature MFP scan to solutions are commonplace. They leverage standard directory and authentication services, making scan to the most widely used form of MFP-based document capture

8 In order to enable simple scanning from networked MFPs for a much wider range of applications beyond just , some MFP vendors and their partners developed new software. These solutions took several forms. One approach was a server-based utility to create scan work ows that could be invoked from the MFP. These work ows or templates described scanner settings and destinations for the images. This approach was typi ed by Xerox s former CentreWare Scanning Services. Another approach was to integrate a thirdparty server that had its own user interface and links to other applications. This approach was epitomized by the relationships between ecopy and Canon and between Notable Solutions and HP. A third approach was in the form of a vendor s own server applications that supported limited user interaction from the MFP control panel (e.g., Ricoh GlobalScan) or that relied on printed coversheets (e.g., Xerox FlowPort). All of these approaches had shortcomings, including: the added cost of a dedicated server and a separate display; poor ease-of-use and exibility associated with limited control panel integration or reliance on paper coversheets; minimal ability to control access to scanning or track scan usage; and a lack of robust developer tools for tighter integration with other applications. As a result, many of these early solutions have been supplemented or supplanted by vendors more recent MFP software development platforms. The need for better programmatic interaction with networked MFPs led to the launch in 2003 of Canon s Multifunction Embedded Application Platform (MEAP), which was the industry s rst true MFP software development platform. MEAP is a Java-based software environment that can be used to create applications that reside inside Canon imagerunner MFPs. The rst MEAP application became available in 2004, but due mainly to business issues, MEAP has fostered a fairly small number of MFP software applications and partnerships since then. Other MFP vendors have followed in succession with their own software platforms. Sharp announced the rst Web service based platform, called Open Systems Architecture (OSA), in the fall of Ricoh, which had provided a handful of ISVs with a C software toolkit in 2003, launched its Java-based Embedded Software Architecture (ESA) in late Fuji Xerox arrived at the end of 2004 with a Web-based MFP software platform called Apeos iix. In the past three years, the number of MFP platforms has proliferated. In early 2006, Lexmark launched its Embedded Solutions Framework (esf). Later that year, Xerox announced its Extensible Interface Platform (EIP), and HP debuted its Simple Document Capture (SDC) software. HP replaced SDC with its Open Extensibility Platform (OXP) in 2007, and Konica Minolta launched its OpenAPI Web architecture later that year. And in 2008, Toshiba announced its e-bridge Open Platform Architecture; Samsung debuted its extensible Open Architecture (XOA), and Kyocera Mita previewed its HYPaS software architecture, although none of these newer offerings will have much impact before As result, nearly every vendor today has promised, previewed or shipped some form of MFP software development platform. Meanwhile, a few independent software companies have continued to carve out for themselves a robust business by developing their own exible, crossplatform middleware software solutions for MFPbased scanning. These companies especially ecopy but also Notable Solutions, EFI and X-Solutions have established partnerships with multiple MFP vendors and software developers

9 B. MFP Software beyond Scanning While network scanning is by far the largest and most important application area to bene t from the emergence of MFP software development tools, two other areas warrant mention. These are document accounting and security. Document accounting software and systems collect, track, report and/or charge for usage of MFPs, as well as printers, copiers and fax machines. Historically, document accounting was focused on tracking copier usage and allocating the cost of copies, typically to external parties. Document accounting has a long history in the legal market and in certain other vertical markets, such as education. With the shift from copying to printing and now to scanning, with greater IT awareness of the costs associated with output, with the spread of color devices that are more costly to operate, and with growing concern over environmental impacts, there has been increasing interest in document accounting in a broader range of companies and industries. With old analog copiers, document accounting required that special hardware be developed and attached to each machine. The advent of networked MFPs made it possible to replace these add-on boxes with serverbased software. Using today s MFP applications platforms, document accounting vendors are able to develop more powerful software, improve the user experience, provide greater customization, and offer better integration with other applications and MFP functions, particularly scanning. Comprehensive security in the context of networked MFPs is still often poorly understood and cumbersome to achieve. The security features provided by MFP application platforms can be interesting in the context of printing and very complementary to the scan function. MFP platforms provide new capabilities for printing that improve the walk-up user experience at the control panel, enable greater personalization, and maintain an audit trail of print jobs. Most of the added security bene ts for scanning are quite similar, including a superior user experience at the MFP control panel, determining who has access to the MFP scan function, and providing an audit trail of scanning usage. C. MFP Application Development Alternatives There are two main technical approaches in the MFP market for creating software development tools: an embedded Java approach and a Web services approach. Each has certain strengths and limitations from the perspective of software developers and customers. As a result, a few vendors (e.g., Kyocera Mita most particularly but also HP and Samsung to a lesser degree) are now trying to walk a middle path by combining certain elements of both technologies. The embedded Java approach in MFP software development arose rst. It is exempli ed by Canon s MEAP, Ricoh s ESA and Lexmark s esf. Samsung s OXA relies on JavaScript, which is different than Java per se but has many of the same attributes in the context of MFP application development and deployment. Java is a widely accessible and powerful programming language. With these platforms, one or more Java applications can reside inside an MFP, although there may also be a server. The application may perform a speci c task (e.g., convert images to searchable PDF les), or the application may connect images and associated data to an external application. Although Java is easier to use than traditional programming languages, such as C or C++, it still requires well-trained programmers with a reasonable level of skill and experience. Java applications can be resource intensive in terms of the processing power and memory they require from an MFP. Because the same processor is used to operate the MFP and host these MFP applications, performance may slow down and limit the number of applications that can be accessed from a single machine. The Java approach has also proven somewhat cumbersome when it comes to designing a user interface for the MFP control panel

10 In addition, the Java approach has shortcomings from the perspective of IT management. Because each Java application must be installed inside each MFP, this approach creates signi cant administrative overhead in terms of disseminating, managing and updating MFP applications. These challenges are magni ed in large enterprises with hundreds of MFPs and multiple MFP applications. In addition, the fact that the Java application is inside the MFP means that each new MFP a vendor develops must be thoroughly tested with each existing Java application that has already been developed by the vendor and its partners. In practice, this can mean that existing Java applications are not certi ed or updated for use on new MFP models until several weeks or even a few months after those models are launched. What has emerged as a strong and compelling alternative to Java is a Web services approach to MFP software development. Web services is presently used by a long and growing list of MFP vendors, including Konica Minolta, HP, Xerox, Sharp, Toshiba and Fuji Xerox. This approach leverages international Web standards such as HTML, XML, WSDL, AJAX and SOAP to create applications, link applications with each other, develop MFP user interface screens, and manage all of the associated software. Web services development is typically much less demanding and less complex than Java programming. A Web-oriented MFP platform is thus accessible to a much wider range of developers, including corporate in-house developers, technology resellers, system integrators and consultants. The time needed to develop a Web-oriented MFP application can also be much less than the time needed to create a comparable Java application. At the same time, if a particular task is best achieved through Java programming, a Web page displayed on the MFP control panel can invoke JavaScript applications for particular tasks or processes. There are numerous other advantages to using Web services for MFP application development. It is easier and faster to develop highly customized and intuitive user screens on the MFP control panel. Because Web services applications do not run inside the MFP, the embedded browser needs only to display Web pages from a server. This thin client approach reduces the need for processing power and memory inside the MFP. Equally importantly, it enables applications to be used in conjunction with lower-end or less expensive MFPs that lack the resources necessary to run embedded Java applications. This is increasingly important as less expensive A4-size MFPs grow in popularity. It is also more practical to have multiple applications running on a server than to have them all running inside each MFP. Because the software resides on a server, it is easier to deploy, manage and update in an enterprise environment. And since the application does not reside inside the MFP, the MFP vendor does not need to undertake lengthy and complex testing of the application before launching new devices. Finally, there is no concern about removing software when an MFP is retired, returned, redeployed or sold, About the only possible downside to a Web based approach is that a large number of MFPs interacting with an application on a server might conceivably create a bottleneck. However, servers can be sized for such demands, just as servers are for other Internet and Intranet applications. In addition, advanced image compression inside most MFPs greatly reduces the magnitude of image traf c over the network. Overall, a Web services approach to developing server-based MFP applications is generally seen today as having many compelling advantages and no real disadvantages as compared to creating Java applications

11 D. MFP Device Considerations Three issues related to the actual MFP hardware are important to consider when developing or integrating MFP applications. These are the capabilities of the MFP controller, any prerequisites or costs for enabling applications on the MFP, and the attributes of the MFP control panel. One can think of the controller as the brain inside the MFP. In terms of MFP software applications, the main concerns relate to controller performance, architecture and compatibility. As already mentioned, the power available from the processor in the MFP controller and the amount of memory in the controller can be issues for a Java-based approach in that these resources must be used to operate the MFP and to host other software applications. The issue of controller architecture is more subtle. It is advantageous that the controller integrate all MFP imaging functions and that those functions share the same processor, memory, hard drive, interfaces and image processing. Such architectures are the norm in most MFPs today. However, this usually means that an MFP con gured with a third-party print controller (e.g., a Fiery from EFI) will likely still require the vendor s own embedded MFP controller in order to be compatible with other applications. This unnecessarily adds complexity and cost. Ironically, even when a Fiery is connected to an MFP, EFI generally must connect yet another PC to the MFP in order to run its own scanning middleware. It is worth noting that most MFP software platforms, when they rst emerged, were not compatible with vendors previous models. In some instances, this has also been the case with major upgrades to existing MFP software platforms. For example, Sharp s OSA III platform was not compatible with previous machines running OSA II. This is not the case with Konica Minolta, which by the end of 2009 will support best via updated rmware on several older bizhub models that previously worked only with OpenAPI. These include the bizhub 361, 421, 501, C203, C253, C353, C451, C550 and C650. In addition, OpenAPI applications developed for older bizhub devices will continue to run on new bizhub models. Another issue to consider is whether customers must purchase some type of rmware or enablement kit for each new or existing MFP before it can work with new applications. This kind of cost which can amount to a few hundred dollars per MFP is often not apparent early in the MFP sourcing process. Moreover, it adds IT complexity to future software deployment. Lastly, in terms of the MFP control panel, the main requirement is that the touchscreen liquid crystal display (LCD) be of a suf cient size, resolution and quality so that it can reasonably portray application-oriented user screens. In nearly all cases, MFP vendors are moving toward using much larger and higher-quality color LCDs. The major Java-based MFP application platforms have been designed to support a speci c control panel size and design. Conversely, Web-based MFP software platforms can often support a wider array of control panels and LCDs. While the LCD control panel can also be used to display a touchscreen keyboard for entering text, some vendors are beginning to offer separate keyboard hardware for use in conjunction with the control panel. This approach provides much better ease of use when entering text. E. Go-to-Market Strategies One of the major challenges for individual MFP vendors and for the MFP industry as a whole is to appreciate that good technology while necessary for transforming MFPs into application platforms is not alone suf cient to assure broad success in the marketplace. Just as important are a vendor s platform business strategy, its partnering programs, and its goto-market plans. The rst issue to consider is how open the MFP vendor is to working with ISVs. Some vendors require a prospective partner to provide a detailed description of the proposed application, justify why the company wishes to work with that vendor, and undergo a rigorous quali cation and selection process. Also important are the price the ISV must pay in order to gain access to the MFP software tools, and the nature and cost of development support for the ISV

12 A crucial issue is whether the MFP vendor charges a royalty on the software that the ISV develops. Given that most leading software tool companies do not charge such royalties, it is doubtful that an MFP hardware vendor can do so successfully. Arguably, this has been a major deterrent for Canon, which is believed to be the only MFP vendor to charge such royalties. A related issue is whether the vendor requires the software developed by the ISV to be formally and rigorously certi ed before it can be sold for use with the vendor s MFPs. Certi cation can provide a degree of assurance to customers that the application works well. At the same time, certi cation fees can be expensive for the developers, and the time required to obtain certi cation can delay software availability. Casting a potentially long shadow over these other concerns is the issue of whether an MFP vendor develops and sells its own applications that compete or are perceived as competing with applications developed by ISVs. Hardware vendors are strongly advised to limit their own development efforts to infrastructure applications, leaving ISVs to develop software with greater added value. A critical and related issue is the lack of much overlap in sales channels and methods between the MFP industry and the document software market. MFPs are sold primarily through independent of ce equipment dealers and direct sales organizations. Equipment is typically leased for 3-5 years, often in conjunction with a per-page charge that covers supplies and service. Conversely, document software and many line-of-business applications are sold by valueadded resellers (VARs), system integrators and direct sales organizations. Typically, the software is bundled with higher-value services relating to customization, integration, support and upgrades. To the extent that an MFP vendor and an ISV both have direct sales channels, joint or team selling may be more feasible. However, when MFP hardware and ISV software are sold through different channels, creating workable programs is much more complex. Nonetheless, in both instances certain joint marketing activities are obvious. These include publishing a partner solutions catalog or Web site; creating a partner Web site or portal; bilateral exhibiting opportunities at trade shows; direct mail campaigns; and joint or cooperative advertising. Even if an MFP vendor does an exemplary job recruiting numerous credible ISVs to participate in its software development program, challenges remain with regard to how effectively the vendor works with these ISVs to market, sell and support the resulting applications. To date, MFP vendors have been more adept attracting partners into their developer programs than in working with these developers to sell or promote the resulting applications alongside MFPs. The approach to sales is especially critical. To date, the most successful applications in the MFP market have been resold by MFP vendors. Examples include Canon s relationship with ecopy, Xerox s partnership with Nuance, and HP s relationship with Notable Solutions. The success of these partnerships, in part, re ects the early stage in the MFP solutions business when the arrangements were established. While there can be strong mutual value for this kind of resale arrangement, it clearly is not tenable for MFP vendors to sell and support all of the applications being developed by their partners. As a result, many vendors reserve this as an important and tangible bene t available only to their top-tier software partners. Notwithstanding such efforts, the biggest challenge for MFP hardware vendors, ISVs and their respective channel partners is how effectively they develop the necessary infrastructure to facilitate mutual sales. MFP vendors who achieve programmatic strength in software sales, marketing and partnering will have a distinct advantage over their competitors. Last, but certainly not least, is whether the MFP vendor has a clear vision of the interplay between hardware and software in its fundamental business model. Some vendors see software and related partnerships as costs of doing business in order to sell more MFPs and increase output volume. Other vendors look at selling software as a distinct new source of pro t that can offset declining hardware and aftermarket revenue. And some vendors appear confused as to which approach they are pursuing. Either approach can be workable, but having clarity on this point is a prerequisite to effective MFP software development partnering

13 Konica Minolta s bizhub Extended Solution Technology A. From OpenAPI to best Konica Minolta has been working on its MFP application development platform for more than ve years. Starting in late 2004, Konica Minolta began using an initial version of its OpenAPI web services platform on a pilot basis internally to develop a few early applications, including PageScope Data Administrator in 2005, followed by Print Status Noti er and DocuBreeze in Captaris (now part of Open Text) developed a connector for its RightFax software in 2006, becoming the rst ISV to work successfully with OpenAPI. Starting in 2007, Konica Minolta made a more mature version of OpenAPI available selectively in Japan, Europe and the US. This resulted over the next year in additional applications and connectors from Konica Minolta and from ISVs. Examples include a DocuBreeze connector from Konica Minolta and the Document Navigator application from KN (now Konica Minolta Business Solutions Netherlands). Starting in 2008, the pace of application developed picked up, resulting in new OpenAPI connectors for applications from Control System, Equitrac, NSi, Prism Software and YSoft. And in 2009, Open Bee has released an OpenAPIcompatible version of its Scan Portal software, and an updated version of Document Navigator has been developed. At the same time, Konica Minolta was working in Japan to extend and enhance the features of its MFP software platform. The result is Konica Minolta s new bizhub Extended Solution Technology, or best. best is neither an alternative to OpenAPI nor a replacement for it. Rather, it is a superset of technologies that adds important new features and functionality to OpenAPI. In conjunction with the transition to best, Konica Minolta has discontinued its previous work with an embedded JavaScript language called JScribe that it licensed in 2006 through IBM from a small German software developer called CCP. Konica Minolta positions best as one of three pillars comprising its bizhub Open Platform ( bizhub OP ) MFP control system. The other two pillars are the bizhub Architecture and the Emperon Print System. The bizhub Architecture seamlessly integrates all imaging and network functions in a bizhub MFP to provide ef ciency, reliability and security of operation. The Emperon Print System encompasses a range of printer languages, drivers and related technologies to assure optimal performance and control over printed output on a bizhub MFP. All elements of bizhub OP utilize technology that was developed by Konica Minolta and is owned by the company

14 B. The best Architecture best consists of three main software components: (1) the latest OpenAPI programming interfaces; (2) an embedded Web browser that supports a customizable user interface for the MFP control panel; and (3) a Software Development Kit ( SDK ). At the same time, Konica Minolta has taken a slightly different approach than its competitors to expose MFP features to software developers. Speci cally, Konica Minolta offers developers three ways to interact programmatically with its MFP devices: (1) Using only the embedded Web browser that is part of best, a developer can easily develop simple pull printing or push scanning plug-ins for basic software integration. (2) Using only the original OpenAPI functionality that is now part of best, a developer can access prede ned work ows and predetermined user interface screens for applications that are somewhat more complex but also exible to create and utilize. (3) Using a combination of the embedded Web browse and OpenAPI functionality that are both now part of best, a developer can create rich and powerful applications that have a highly customized user interface and provide real-time bidirectional communication with other applications. OpenAPI As mentioned, the OpenAPI programming interfaces provide access to and control over various MFP imaging and device functions from an external Web server. In conjunction with the transition to best, Konica Minolta has enhanced and expanded the functionality of OpenAPI. Applications that were developed or integrated using an earlier version of OpenAPI continue to work with best. Conceptually, the OpenAPI portion of best has six layers. The uppermost layer is a Software Developer Kit that provides direct programmatic access to the capabilities of best. Below this is the Message Layer, which combines document images and associated data that are formatted in XML and exchanged using the SOAP messaging protocol. Beneath this is the Application Layer, for which OpenAPI relies on HTTP 1.1. Next down is the Transport Layer, for which OpenAPI uses standard TCP. Below this is the IPbased Internet Layer. And nally, at the base, is the Network Interface Layer, which relies on Ethernet. Conceptually, the OpenAPI portion of best has six layers. The uppermost layer is a Software Developer Kit that provides direct programmatic access to the capabilities of best. Below this is the Message Layer, which combines document images and associated data that are formatted in XML and exchanged using the SOAP messaging protocol. Beneath this is the Application Layer, for which OpenAPI relies on HTTP 1.1. Next down is the Transport Layer, for which OpenAPI uses standard TCP. Below this is the IPbased Internet Layer. And nally, at the base, is the Network Interface Layer, which relies on Ethernet. Each OpenAPI function or command has an associated HTTP body and header. The HTTP body consists of the OpenAPI code packed using SOAP, the OpenAPI data described using XML, and an attached le in cases where an image is being transferred. Within this structure, OpenAPI provides three complementary message types. One type of message is a request initiated by the external host or application to do something on the MFP. The opposite would be a message request initiated at the MFP and sent to the external host or application for action. The third type of message is a simple device reporting message initiated at the MFP and sent to the external host. The main improvements in OpenAPI relate to ve areas: (1) support for an embedded Web browser interface; (2) support for an optional USB-connected keyboard; (3) the ability to preview scanned images on the control panel; (4) enhanced user authentication services and the ability to customize the control panel based on the user; and (5) a new software license management feature. In addition, there are minor enhancements in existing OpenAPI functions

15 OpenAPI encompasses six major areas of functionality, each of which can embody multiple programming interfaces: The Scan to Application function enables a bizhub MFP to scan, send, route and archive images. It supports the creation of work ows comprised of multiple tasks. These work ows can be saved and repeated, and an administrator can control access to work ows. The Authentication function exposes network user authentication features at the bizhub MFP to support secure access and document accounting applications. The MFP can be con gured to limit access to speci c imaging functions and to associate usage limits with users or groups. This capability is also available to support external authentication devices, such as ID card readers and biometric (e.g., ngerprint) readers. The Job Log tracks and exposes print job information and MFP device information, such as job status, account status, and job logs and history. The Counter function provides programmatic control for the internal machine counters and user counters on the bizhub MFP when the native user authentication scheme is used instead of a separate external user authentication scheme. The Setup function includes several administrative tools. These enable control over launching and using the embedded Web browser and support for a customized image, text or Adobe Flash screen saver to be displayed on the control panel. The Pull Print function enables PIN-protected or secure follow-me printing. From the bizhub MFP control panel, a user can browse a list of les stored on an external server or inside the MFP, select a le to print, choose the appropriate print settings, and receive the hardcopy output at that machine or at another designated MFP or printer on the network

16 Web-Based Customizable User Interface Ncustomizable, browser-based interface on the bizhub control panel is the most signi cant new feature distinguishing best from the original OpenAPI architecture. The new interface provides all of the basic attributes of a Web browser for displaying information (e.g., HTML, XHTML, JavaScript, Ajax, RSS Reader) from a Web server or information stored on the MFP hard drive. In addition, the Web browser has plug-ins to display Adobe Flash and Adobe PDF content. Konica Minolta provides the embedded browser as part of a suite of add-on utilities that it calls i-option. While pricing for i-option was initially high, Konica Minolta is reducing the price for the optional browser substantially in many markets. Software Development Kit Konica Minolta s updated SDK for best includes a set of base and common libraries, along with components for all of the OpenAPI functions previously described. The modular nature of the SDK is intended to help developers minimize the size of their resulting application code. In addition, the SDK is not limited only to Windows environments. It can also be used on Linux and Mac development platforms. Supported bizhub Models The best architecture was rst supported on nearly all of the A3-size of ce color MFPs that Konica Minolta launched in 2007 and on a subsequent series of ppm midrange monochrome bizhub MFPs. From 2009 onwards, Konica Minolta is supporting best on nearly all new or updated A3- size bizhub color and monochrome MFPs. Konica Minolta has no near-term plans to support best on its bizhub PRO production MFPs, on any of its A4-size bizhub MFPs, or on any of its singlefunction bizhub printers. However, Konica Minolta does offer other developer tools under the best umbrella (e.g., relating to the printer driver) that enable developers to customize some features of these devices

17 Konica Minolta s best Business Strategy Like many MFP vendors, Konica Minolta has not yet communicated a comprehensive strategy for best. As was the case when OpenAPI debuted, Konica Minolta s plan is to make best available in stages. This began with a select group of partners in mid The company is now embarking on a process to engage more openly with additional partners. Plans for a formal public announcement of best, promotion of best in the developer community, education regarding best within the company s sales channels, and communicating the bene ts of best to customers and prospects will take on a higher pro le in Konica Minolta acknowledges that it did not attain signi cant market or partner traction with the initial launch of OpenAPI. Konica Minolta said it received interest from several dozen ISVs interested in working with its platform, but at the time Konica Minolta lacked the program infrastructure needed to support a large group of developers. In response, Konica Minolta formally launched its Developer Support Program (DSP) in Europe in late 2008 and in the US in early Since launching the DSP, additional ISVs (e.g., ecopy) have been provided access to best. New best-compatible applications are expected to emerge in late 2009 and on into It is important to note that Konica Minolta does not charge developers a license fee for any of the applications they create or integrate using best. Konica Minolta sales companies in the US and Europe administer their own DSP, with technical support from Konica Minolta headquarters in Japan. Each region has the latitude to customize the program to meet its own needs. For example, in Europe the DSP has three membership levels. The Silver Level is the starting point for all companies that join the program. Companies need only ll out an application in order to gain access to the relevant developer resources and interact with other developers in a moderated online forum. The Gold Level provides direct development support from Konica Minolta, access to Professional Services via the Web, and the ability to contact the Konica Minolta Solution Centre via an escalation process. Companies invited to participate at the Platinum Level engage in a direct partnership with Konica Minolta, including development of a closely integrated go-to-market strategy and formal sales alliance whereby Konica Minolta resells the partner solution

18 Putting Konica Minolta s best in Perspective When we rst examined Konica Minolta s OpenAPI in the fall of 2007, we concluded that it was an important addition to the growing range of application development platforms offered by manufacturers in the networked MFP market. At the same time, we cautioned that all of the technical details of the OpenAPI software and associated business support programs surrounding OpenAPI are still evolving. The good news for Konica Minolta is that the company has continued to make progress on both the technical front and in terms of its partnering strategy. Speci cally, the transition from OpenAPI to best and the new Developer Support Programs have much to offer. From a technical point of view, it is even clearer now than it was originally that Konica Minolta s decision to embrace a Web services approach to MFP application integration was the right choice. In this regard, Konica Minolta is in good company. Additional vendors (e.g., Toshiba) have now joined Sharp, Xerox and HP in adopting a Web services approach. Meanwhile, not a single new vendor has joined Canon, Ricoh and Lexmark in pursuing a strategy wholly dependent on embedded Java applications. Moreover, Web services is becoming increasingly important in the broader document capture, content management and enterprise software markets. Konica Minolta s decision to discontinue work with JScribe is also a positive development in that it clari es the company s software direction. The advantages of a Web services approach for MFP software development are numerous, and the potential shortcomings are inconsequential. Web services development is typically less demanding and complex than Java programming. It is usually easier to develop customized and intuitive user screens on the MFP control panel with Web development tools. Because applications do not run inside the MFP, the embedded browser needs only to display Web pages from a server. This thin client approach reduces the need for processing power and memory in the MFP; this is a de nite plus as demand grows for less expensive A4- size MFPs. It is also more practical to have multiple applications reside on a server than run inside each MFP. In addition, server software is easier to deploy, manage, update and remove. And since the application is not part of the MFP, testing of new MFPs and solutions can be simpli ed. These advantages provide bene ts for MFP software developers and systems integrators, for IT administrators and line-of-business management, and even for end users. The most signi cant technical advance that Konica Minolta has made in transitioning from OpenAPI to best is the addition of support for an embedded Web browser, which in turn enables a exible and customizable user interface on the MFP control panel, while also facilitating bidirectional communication with other applications. Konica Minolta s ability to offer three different paths for MFP application integration and development with best is unique at this time. As long as the company can clearly enunciate the differences and bene ts of each approach, it may be able to turn this apparent complexity into an advantage

19 As is often the case, Konica Minolta is in the process of updating the bizhub line so that all of its A3-size models can exploit the new capabilities of best. The good news is that nearly all of the company s popular color bizhub models are already compatible with best, and most monochrome bizhub models will be updated to support best by the end of On the other hand, Konica Minolta has no near-term plans to support best on any of its A4-size MFPs, even though the Web services approach utilized by best is well-suited to the task and the popularity of A4-size MFPs continues to grow. The recent launch of a formal Developer Support Programs in much of the world is a very positive move. Konica Minolta appears committed to pursuing more comprehensive sales and marketing engagement with key partners and to working with a much broader range of new ISVs. In addition, Konica Minolta has a period of several months to expand and re ne its bestrelated partnering efforts and to ramp up internal sales training activities in preparation for a higher pro le rollout of best in As a result, we stand behind the comment we originally made in discussing OpenAPI two years ago, when we concluded: Technically, best is on its way to being a solid and competitive offering for a broad range of software developers. However, Konica Minolta in the near term still lags Sharp and Xerox, and to a lesser degree Ricoh and Canon, in its ability to offer a mature, fullyfunctional MFP software platform that is market-proven and broadly supported across its product line. Perhaps the most crucial issue facing Konica Minolta and the entire MFP industry will be translating these noble intentions into practical and tangible activities that add value, increase differentiation and create new mutual business opportunities in the day-to-day selling environment. From a business perspective, the fact that best is arriving behind the offerings of some major MFP manufacturers means that Konica Minolta s partner programs are not as fully developed. On the other hand, the length of time a vendor has had a software partner program in place does not necessarily correlate with having a high-quality program that partners see as effective or successful. In addition, Konica Minolta can observe what has worked well in the MFP market, emulate success, and avoid repeating what has not worked. For example, Konica Minolta s decision not to charge a royalty to ISVs is wise

20 1-6-1 Marunouchi Chiyoda-ku, Tokyo, Japan Information best Whitepaper