Austen Hufford writes that “Office Depot said the move represents a shift in the company’s strategy as the company wants to be a larger provider of business technology and services,” with CompuCom providing “remote and in-person IT services to businesses through its team of about 6,000 licensed technicians. “Technology is the office supply of the future,” Office Depot Chief Executive Gerry Smith said in a statement.”
Noted Office Depot CEO Gerry Smith in Bill Briggs’ article, “Technology is the office supply of the future. The combination of CompuCom’s enterprise I.T. services with our millions of customers and approximately 1,400 distribution points gives us the credibility and scale to build a sustainable platform and stand apart from the competition.”
Reporter Alec Shirkey writes, “By joining forces with the Charlotte, N.C.-based solution provider, which works with six of the top 10 Fortune 500 firms, Office Depot attains an instant, established IT services presence in North America – a "fragmented" market valued at $25 billion, according to the office supplies specialist. ‘That's a big deal,’ said Martin Wolf, president of martinwolf M&A Advisors of Walnut Creek, Calif., one of the top channel investment advisory deal-makers. ‘CompuCom's business has changed over time. But they have a big robust services business, and that's interesting.’”
Analyst Jay McBain ponders the implications of the acquisition with a list of points on why he thinks it can work. “A combination of market breadth, depth, and proprietary intellectual capital could transform Office Depot into a powerhouse technology company with a unique omnichannel delivery model. Given the significant industry, structural, and financial headwinds, it will be interesting to watch.”
In his coverage of the news, Nick Turner noted, “The company described the acquisition as the first step toward becoming a seller of business services and technology -- rather than a traditional retailer of paper, pens and staplers, which are less in demand as offices go digital. It plans to put tech kiosks run by CompuCom in all of its 1,400 stores while also selling traditional office supplies to the service providers’ current customers.”
How to Build a More Efficient IT Infrastructure
October 12, 2017 | Post by Tony Brown | 0 Comments
Progressive IT strategies now make it possible for enterprises to align technology to support and propel business objectives — while keeping their budgets in check. We’ve broken down how in the steps that follow.
How Insurance Companies Can Overcome Difficulty Attracting IT Talent
October 11, 2017 | Post by Tim Fisher | 0 Comments
What happens when an insurance company doesn’t have the IT talent required to keep its most essential IT solutions up and running? How can it ensure the business has the support it needs for its current and future technological initiatives? Outsourcing IT solutions can provide the ideal solution, and provide key benefits.
Hyperconvergence: Hype or Truth?
October 10, 2017 | Post by Tony Brown | 0 Comments
If your business is one of the many that have adopted a hyper converged infrastructure, no doubt you believe that hyperconvergence lives up to all the hype. Those of you that have not yet dipped your toe in the hyperconverged pool may in fact believe it isn’t worth making a change — but not for long.
At Apple, the goal is to make amazing products that enrich their customers lives. All of their products are designed around the same principles - seamless integration between hardware and software, powerful ecosystems of applications and the best possible experience for users.
Office Depot's blockbuster $1 billion purchase of CompuCom is not like anything we've seen before. What we have seen before are the fits and starts of large retailers getting into IT services, but not sticking to it. Staples bought managed service provider Thrive Networks in 2007 and electronics giant Best Buy purchased mindSHIFT in 2011. Both of those big retailers sold their respective MSPs in 2014. Ken Jackowitz, CompuCom's chief product officer said that CompuCom would remain "aggressively" focused on its core enterprise business, noting that the transaction is accretive to both sides of its services offerings.