How Mergers and Acquisitions Affect Data Security in Office Technology

M&As have become a regular occurrence in the office technology industry, which is expected when a market reaches this level of maturity. As businesses strive for increased market share and competitive advantage, M&As are the natural step towards growth—not just among office equipment dealers. This same activity occurs among the software vendors that office equipment dealers have come to rely on. And this trend may be a bit more concerning, considering the data that changes hands when systems change ownership. If your CRM, ERP, or device management solution suddenly changes ownership, you have good reason to scrutinize who will store and manage your critical customer data.

When companies merge, the process involves integrating complex systems, networks, and databases that were never originally designed to work together. During this transitional period, vulnerabilities can emerge, creating potential entry points for cyber threats.

Security concerns are heightened when vendors that manage sensitive customer data are involved in M&A activities. Office equipment businesses reliant on managed print services, document management systems, and cloud storage solutions can be particularly vulnerable, as these systems often handle sensitive customer information, including financial data, personal identification, and proprietary business information. Your security concerns after an M&A announcement are valid, and scrutiny of the transition process is warranted.

As the industry evolves, new vendors constantly emerge, offering new solutions with promises of greater efficiency and cost savings. While innovation is vital for progress, it’s crucial to approach new industry players with a healthy dose of skepticism, particularly regarding data security. If an ERP provider doesn’t have longevity in your industry or hasn’t demonstrated data security practices, they are worthy of extra scrutiny.

Reliable legacy systems often undergo rigorous testing and regular product updates. They have a track record of reliability over many years and built-in security measures refined through years of real-world office equipment industry applications.

New, eager vendors may prioritize onboarding new customers over security and in-field validation. For office equipment dealers who manage sensitive customer data, adopting such solutions could expose them to significant risks.

Another critical yet often overlooked concern during M&A activities is the acquiring company's relationships with other industry players. In the rush to penetrate a new market and expand their footprint, new vendors are susceptible to forming alliances or partnerships without the same insights and experience of a company with longevity in the office equipment industry.

This combination of industry naivete and enthusiasm for rapid market expansion can lead to knee-jerk practices that inadvertently put your customer data at risk.

Your software vendor must provide secure data exchange protocols to ensure that data-sharing practices with other vendors prioritize the security of your business data.

How can office equipment dealers safeguard their businesses against data security risks in a landscape marked by constant change? The key lies in due diligence. Before entering partnerships with new vendors or continuing with existing ones post-M&A, scrutinize security protocols, data management practices, and track records.

Prioritize vendors with a proven history of reliability and security in your industry. Seek vendors who have demonstrated investment and engagement in the office technology industry.

As the office equipment industry continues to evolve, the importance of security cannot be overstated. Mergers and acquisitions will remain a fact of life, bringing opportunities and challenges. By cautiously approaching these changes and prioritizing security, office equipment dealers can protect their businesses and customers in an increasingly uncertain environment.