CRN Hot Seat 2013 - Simon Harbridge

Sara Yirrell talks to the chief executive of Stone Computers about IT asset disposal and the predicted further growth of tablets this year

What are your plans for 2013?

I have made a few changes since becoming chief executive [Harbridge took over in November last year]. Stone has been going for 20 years and it has got where it is by carrying on its core values and principles. Staff are committed to the business and work in a relaxed atmosphere. We will continue to focus on the provision of desktop and mobile to the public sector and carry on growing.

Last year we had our best ever year, growing to £73.8m up from £65m the previous year. I’m not expecting to grow the same this year but we are aiming for between six and seven per cent growth. It is business as usual for our core business. That enables us to invest in professional services – on the side of designing, managing and implementing services for councils – we are doing the whole piece.

On the professional services side we have made some key appointments, and as well as services we are seeing some growth in our recycling and repair service – that is coming along nicely.

At Stone we offer this as part of our overall package to customers and as a business it is a really good USP. Customers know they are taking on a well-known and trusted partner. There are many start-up recycling businesses out there, but customers are perhaps not sure that these companies will dispose of their equipment in the right way – you hear stories of council machines turning up at a dump in Africa, for example.

It is very important for our customers to know that when they are dealing with Stone, we are a trusted and reliable partner and we have dealt with their assets properly.

We are probably still only recycling from 15 to 20 per cent of customers, but this year we expect to see that increase significantly.

I would consider acquisition – nothing is being ruled out. We have a lot of great things going on here at the moment and I would like to see the initial changes I have made bed down. If everything goes according to plan, you never know, but there is enough going on here at the moment.

What technology trends do you see in 2013?

We started selling Google Chromebooks [earlier this year]. Initially Google was outside our normal operating zone, but these devices came out 12 to 18 months ago, and there was some interest but also disadvantages with the products at the time. You had to be online all the time because it was a browsing tool and it had limited apps.

However, Google has built more memory into the product itself now and developed a number of apps, meaning users can do a lot more offline. It makes the devices more user friendly and the price point is also very competitive so it hit a gap in the market that is not covered by Microsoft and Apple – Google has almost created its own niche.

In terms of other trends, tablet devices are on the rise and we are also continuing to look at all-in-one devices. These are very popular in schools, colleges and universities where space is limited and desktop PCs take up too much room, so they are forced to look at this again.

The technology has moved on now and we have some great-looking all-in-one devices coming in the near future – they will get the whole bag of performance, space saving and the price point.

BYOD is talked about a lot but you don’t see it in practice too much at the moment, particularly in parts of the public sector. Perhaps on the corporate side and also in universities and councils it is talked about more.

How do you see the economy panning out this year?

Things are obviously difficult, but they have been difficult for some time now and it is not going to improve overnight. Everyone is used to the level it is at now and thinks of it as the new normal. Things are tight, but everyone is working very hard to put their best feet forward in the circumstances.

You get companies that are doing a good job and customers still have pent-up demand for equipment and technology. Whatever happens in the overall economy, people have to invest in technology and we support them with cost-effective solutions. Technology does not stop moving and there are benefits for everybody who adopts it – it is not like the best years when money grew on trees, but you could always drive demand in difficult times. In some ways we are fortunate.

I would say that I am cautiously optimistic. Things are not going to be easy. We are good at what we do and that is what gives us the confidence. We have a great place in the market.

COMPANY PROFILE

Established in 1991, Stone specialises in supplying and supporting ICT and audiovisual solutions to schools, colleges, universities, local government, the emergency services, the NHS and the MoD. The Stafford-based firm, which employs more than 250 staff, is one of only a handful of system builders left in the UK and offers a range of services including flexible warranties, hardware encryption and helpdesk services. It also has its own custom-built recycling centre and offers rebates to customers that use this facility for their old IT kit.