Print.IT Reseller - issue 56

01732 759725 54 VOX POP do not make it – but a lot do and they build companies that can compete with support from OEMs disaffected by the original takeover, and so we emerge with a new raft of vibrant local dealers servicing their business community. I don’t foresee anything changing this cycle.” Steve Algeo, Financial Director, Systems Technology : “Consolidation is a trend that exists in our industry and one that I believe will endure. I’ve worked with a number of dealers who, at one point or another, felt that the time was right to sell, and have been able to do so in a marketplace that has many willing buyers and investors. “Looking back, we can also see large consolidations triggering the next tier of dealers to seize opportunities and accelerate their own growth via acquisitions. Overall, consolidation is a good thing if it helps to improve the quality of service to clients and assists in firing up the ambition of the remaining dealers.” Alastair Adams: “There is consolidation and partners have been acquiring small businesses for years. More important for us is to understand what consolidation means to our customers, which is a simple supply chain where more services can be provided by fewer partners. Manufacturers are feeling the pressure as much as channel partners: prices are coming down, so everyone is trying to find new ways of adding revenue and margin in order to improve profitability. Customers want their managed service to evolve and this means adding new solutions beyond print. This is a great opportunity, but it requires bringing new people into the organisation with the requisite skill sets, rather than to overestimate what the existing sales creates disruption, disruption drives change and that means clients look to move providers and employees look to change organisations. Selfishly if we can take advantage where opportunities develop, it helps and supports our growth. I see this trend continuing for some time to come, it’s almost consolidate or be consolidated!” Phil Madders: “Consolidation is inevitable and a natural part of the cycle. Today it is Apogee and HP, before that it was Annodata and Kyocera, twenty years ago it was IKON buying everyone only to be bought by Ricoh. The market took a deep breath and then marched on. “I think people often underestimate the channel’s ability to re-invent itself. In the 18 years we have been supporting the channel we have seen a cycle emerge. There is a large acquisition and company A is taken over by company B. Not all the employees of Company A are happy in the new environment they find themselves in so after a suitable period, depending on their seniority, they emerge to start their own company with a few of the customers that are not keen on Company B either. Inevitably some of these entrepreneurial spirits teams can achieve. “I believe the real consolidation is around the service offering and how to implement additional services successfully, which is more important than the consolidation of vendors.” Damien Evans: “Consolidation is not a bad thing as you should get pooled resources and ideas to make hardware, software and services better for the end- user. The managed print industry can be a bit of a dinosaur and it must continue to evolve in our technology-led changing world. “In my opinion, consolidation will continue over the next few years, manufacturers will merge and become stronger as a combined entity. You have seen this with Samsung and HP – watch what happens to Canon and Xerox next. “You will see a bigger divide in the future between local dealers and super dealers/vendors, there will be a place for both, but they will have to offer more than just print i.e. all office products and IT services; customers do not want multiple suppliers. “Mergers won’t be just between two print companies, you will see mergers or acquisitions between IT solutions, facilities management, stationery companies; managed print in the future will be more than just selling photocopiers and printers.” Julian Stafford: “I think consolidation is inevitable. The reduction in recurring revenues allied to the ever increasing skills required to properly maintain and network the latest MFPs, means sheer scale is a vital ingredient if you’re going to survive and flourish in this market long-term.” Elia Giovanni: “Market forces will ultimately steer the market where it The managed print industry can be a bit of a dinosaur and it must continue to evolve in our technology- led changing world ...continued Shaun Wilkinson Damien Evans Phil Madders