In his analysis of the acquisition, Forrester principal analyst Jay McBain notes that “Office Depot is taking a different approach from Staples and Best Buy...This is a full company pivot into IT services as opposed to an ancillary revenue and margin play...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.”
Is Your Enterprise Network Disaster Proof?
October 16, 2017 | Post by Tony Brown | 0 Comments
Human error, ransomware, natural disaster, hardware failure … the list of potential threats to enterprise data is long and downright scary. These real threats can wreak havoc on businesses, and in severe cases force companies to shut their doors for good.
Jacqueline Renfrow writes that “The acquisition will allow Office Depot to start selling tech services to its business customers—a step in becoming a seller of business services and technology.”
Analysts Nitish Mittal and Bharath Reddy weigh in on the Office Depot deal, noting that while previous instances of retailers acquiring MSPs were not ultimately successful for a number of reasons, “most of CompuCom’s revenue comes from conventional project-based and procurement engagements. The customer experience point is important here. If Office Depot can make this model a de facto choice for customers looking for a better customer experience, this might just work.”
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.