Apr 8 2014, 5:12am CDT | by PR.com
Miami, FL, April 08, 2014 --(PR.com)-- Compliance Standards (Compliance-Standards.com) is pleased to announce the release of new reports that analyze the latest trends in IT asset disposition (ITAD), electronics recycling and IT services. Among the reports available to customers, one is titled: “Despite no Contribution from Acquired ITAD Companies, Component and IT Distributors Plan on Spending More on ITAD.”
In this report, Compliance Standards concludes that the contribution of the recently acquired ITAD businesses to the broad performance of the large IT distribution firms that acquired them remains minimal to nonexistent. But the vision of the acquirers is to build, on the long run, true service-oriented, higher-margin organizations to reduce the impact of their low-margin hardware businesses. As we move toward IT consumerization, and the expected morphing of ITAD with the broad IT services sector, such a move would have a direct impact on the commercial space, hence requiring IT distributors to transform themselves into solutions providers and IT services firms.
Compliance Standards also released an assessment of UK-based electronics services and repair company Regenersis acquisition of data erasure firm Blancco. The move sends fresh signals that the ITAD and IT services sectors, as well as investors are looking for higher-value acquisition targets of a different sort.
“From our perspective, Blancco’s acquisition is the strongest indicator thus far of a market that is maturing, expanding beyond hardware and into areas of the ITAD, recycling and services spaces that emphasize compliance,” says David Daoud, Managing Director of Compliance Standards LLC. Adding, “it is also about investors that are looking for new sustainable sources of revenues and higher margins amid a transforming IT and hardware landscape.”
“On the other hand, while a lot of M&A activity has essentially focused on the end-of-life of IT and electronics, we are now seeing a blurring of the lines between what is happening there and what we expect to happen in the broad IT services sector going forward. There is plenty of evidence to suggest that a morphing between end-of-life ITAD and IT services is underway, a trend that is likely to create a whole new set of dynamics on the competitive front. In the next to two to five years, we are most likely going to witness a redefinition of the value chain and a sort of reshuffling of the competitive landscape in a unified IT services/ITAD space,” says David Daoud.
Compliance Standards’ third report focuses on Sony’s exit from the PC space and its impact on US electronics recycling. There reports are available on Compliance Standards’ site.
About Compliance Standards:
Compliance Standards (Compliance-Standards.com) is a premium advisory and research service that provides consulting and market intelligence to the ITAD and electronics recycling sector and to the large corporations that use ITAD services. The company covers the critical functions of consumer and enterprise recycling and sustainability, including IT hardware, data center recycling, consumer electronics, home appliances and more. Coverage focuses on compliance issues, such as those related to data security, but also on discovering best practices, efficiency techniques, cost control practices and brand protection strategies in sustainability and recycling.
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