Here is what you’re not being told, there is a silent war brewing for the acquisition of shredding companies. Shredding companies as a stand-alone business are slowly coming to an end. The companies that are only offering shredding services are already feeling the pressures of sustaining a commoditized business model. I have even seen others on LinkedIn say that shredding is looked at as environmental service more than a security service…WHOA!
However, the Shred Only companies can benefit from this acquisition war. As more and more MSP’s (you know, those I.T. people who manage your business’s network) get into the shredding business, the more and more they may be willing to pay to grow. Couple this with the RIM (you know, the people you store your physical documents with) companies and then top it off with large SHRED-ONLY companies and you got yourself a nice situation where a SHRED-ONLY company can maximize a final pay day.
Not looking to participate in this war? There are alternatives out there to creating a new business model. A business model that is built on a solution NOT a service. A business model built on compliance NOT a commodity. Yes, you do not need to “sell out” just yet because there is more data being produced today than ever before, you just need to capitalize on it. SHRED-ONLY companies are doomed, it was nice while it lasted. Long live the data security companies/industry.
Steve Green – Vice President of Sales and Marketing
CSR Privacy Solutions, Inc