Print.IT Reseller - issue 56

Continued... 01732 759725 16 OPINION With the acquisition of Samsung’s printing business, HP Inc. ramped up its market share and it’s a safe bet to assume that following the recent acquisition of Apogee, it will look to convert the company’s not unsubstantial MIF to HP devices, which will certainly serve to reinforce its dominance in the printer market. Alastair Adams, Director of Commercial Group and Divisional Director of its MPS business agrees that there may be pressure on Apogee to sell more HP products. “This would be advantageous if customers saw Apogee as part of HP and not so independent. If HP invests in Apogee, then it will make it stronger, which will affect the companies competing directly with it,” he said. Apogee has historically been a multi-vendor provider, supplying brands including Xerox, Ricoh, Konica Minolta, Canon and Kyocera – it will be interesting to watch how those relationships pan out in the coming months and years. “In a market where manufacturers like Canon and Ricoh offer the top tier, trusted solution, it will be interesting to see how corporate customers respond to the idea of switching to HP equipment,” said Jason Spencer, Director, Systems Technology, adding: “We are proud to be an independent business, ideally positioned to support our corporate clients with fully-accredited supply and service propositions for both Canon and Ricoh.” The IDC Worldwide Quarterly Hardcopy Peripherals Tracker, May 2018 positions HP as the number one vendor with 40.9 per cent market share The ripple effect A strong move Apogee bills itself as Europe’s largest independent provider of print, document and process technology and outsource services. It has always promoted its unique approach to managed services, pro- actively monitoring its clients to maximise their uptime and the innovation it employs to maintain a portfolio of services which differentiates it. “Apogee being sold was inevitable,” said Damien Evans, MPS Key Account Director at ZenOffice. “Since they acquired Danwood, it was an open secret that they had a ‘flog it or float’ mantra within three years,” he added. In the last issue of PrintIT Reseller , IDC analysts Jacqui Hendriks and Sharon McNee, described the acquisition of Apogee as a very strong offensive and defensive move by HP Inc. in the battle to conquer the market. Adams concurs: “This is a bold move by HP. It is about scale and improving its national coverage overnight through access to Apogee’s customers. It has been said that Apogee will run as its own entity, it’s already a powerful competitor and the acquisition by HP doesn’t make it more of a threat in the short-term.” A major channel player Apogee is without doubt, a major channel player. The company has completed multiple acquisitions and alongside many smaller dealerships, has absorbed two of its biggest rivals - Danwood and Balreed into the business. IDC says that by choosing to acquire rather than partner with Apogee, HP Inc. is imitating the approach traditional Apogee bills itself as Europe’s largest independent provider of print, document and process technology and outsource services WIDER MARKET IMPACT “I think there will be a large impact on the wider market. It raises so many questions over how HP will integrate the businesses to create a clear, consistent channel strategy. I’m intrigued to see what they’ll do so as to maintain the integrity of their channel strategy and manage the conflict between their direct / acquired business and their channel partners. “From Xeretec’s perspective, we’re proud to be the UK and Ireland’s largest privately owned independent provider of managed print and IT services. We are able to carefully select the right technology to meet the growing and diverse demands of organisations. Our independence gives us clarity of choice and enables us to always represent the best interests of our large client base in both the private and the public sector.” Steve Hawkins, Chief Executive, Xeretec www.xeretec.co.uk Jason Spencer Alastair Adams