You know this, and live this - for decades, the OEMs drove the industry(which is natural) and in doing so, ignored until the very last every issue that diminished the sale of hardware.
Influence has been shifting for a decade as customers find better ways to move data within and outside of their organization without a big copier in the hallway.
The Fear of Covid kicked the transformation into hyper-drive, leaving the OEMs in the rearview mirror.
"The Law of Large Numbers" works.
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"The micro-economic scenario, in part, explains the significant interest and involvement we have seen in the industry from investment firms and PE in particular. With strong balance sheets, cash flow, highly predictable revenues, and continued opportunities for growth, dealers have become quite an attractive area for PE firms to park their money. There are, however, a number of questions that arise with respect to private equity’s involvement in the industry. One such question is how long the favorable micro-economic conditions will remain in the industry as the overall pie continues to shrink?"
Read the rest, here.
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