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<\/p>\nThe two execs discuss working with OEMs, entering North America, and managing datacentres<\/p>\n
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From left to right: Jakob Lagander and Kevin Flowerday<\/p>\n
Long before the circular economy became a trending topic in the channel, it was at the heart of 3stepIT\u2019s mission.<\/p>\n
Founded in Finland in 1997, the solution provider quickly expanded in the Nordics in countries like Norway, Sweden, and Denmark, where it was met with \u201csignificant success.\u201d<\/p>\n
To supersede its European this ambition, it partnered with BNP Paribas, forming the BNP Paribas 3 Step IT joint venture, in 2019, which the CEO believes has \u201ccreated a perfect marriage.\u201d<\/p>\n
As part of the joint venture, BNP Paribas provides financing, risk management and market reach, while the Finnish firm delivers its circular solutions and expertise across different countries and organisations.<\/p>\n
In an interview with CRN, Jakob Lagander, CEO of 3stepIT, and Kevin Flowerday, UK country manager of BNP Paribas 3 Step IT, discuss this partnership, 3stepIT\u2019s global ambitions, the importance of OEMs.<\/p>\n
Lagander says the joint venture with BNP Paribas has allowed 3stepIT \u201cto establish a presence in several European countries, such as the UK, France, Germany, Belgium, the Netherlands, Spain, and Italy, we now operate with dedicated offices and personnel.<\/p>\n
\u201cPortugal, Switzerland, Austria, Poland, Romania and Turkey are leasing countries.\u201d<\/p>\n
The firm also recently entered the North American market, with the launch of a Texas headquarters and dedicated sales hubs across the US and Canada<\/a><\/strong>, as well as the launch of a datacentre lifecycle services division.<\/p>\n \u201cWhile BNP Paribas does support European clients in North America, they don\u2019t have a direct presence there, so we looked for other avenues to enter the NORAM market.<\/p>\n \u201cWe found a perfect fit with Procurri, a company we\u2019ve been working with closely for several years.\u201d<\/p>\n Procurri is a Singapore-headquartered maintenance, lifecycle, ITAD services, and hardware provider.<\/p>\n \u201cOne of their divisions was willing to let us take it over, as they recognised that we could scale it faster than they could.\u201d<\/p>\n 3stepIT didn\u2019t fully take over the division but rather brought in some of the Procurri team.<\/p>\n Being involved in 19 countries does not seem to be enough for the company, who wants to keep expanding into new markets going ahead, alongside building on its existing partnership.<\/p>\n \u201cOur focus remains on driving sustainable growth in the circular technology space, delivering innovative services to our clients and partners worldwide,\u201d says Lagander.<\/p>\n This expansion push has also been powered by an increase in appetite for circular technology in recent years.<\/p>\n This enhanced demand for circularity stems, according to Lagander, from two main factors.<\/p>\n \u201cThere is an alarming rise in e-waste and the rapid acceleration in its growth, so there\u2019s certainly a massive market and an increasing demand to address this issue.<\/p>\n \u201c[The younger generation] is also becoming accustomed to the idea that they don\u2019t always need to buy brand-new products.<\/p>\n \u201cFor example, when they need a new smartphone, the question isn\u2019t always \u2018Where do I buy a new one?\u2019 but \u2018Should I buy a used one?\u2019<\/p>\n \u201cThis shift is creating higher value for used equipment, which in turn makes our services even more valuable and appealing to customers.\u201d<\/p>\n The UK evolving at satisfying pace<\/p>\n In the UK, the demand is growing at the same pace as in the other countries 3stepIT is involved in, according to Flowerday.<\/p>\n The interest is coming from both customers and channel providers such as OEMs that want to embed circularity within their offerings.<\/p>\n \u201cIt\u2019s almost at the forefront of their agendas,\u201d the UK country manager tells CRN.<\/p>\n The solution provider works with some global OEM providers in the UK, and partners with Computacenter, CDW, Jigsaw, Softcat, XMA, and Sync.<\/p>\n \u201cWe cover a broad spectrum, primarily in enterprise resellers delivering hardware-centric solutions,\u201d adds Lagander.<\/p>\n \u201cWe also work with some of the main carriers in the UK, delivering circular solutions to their enterprise customers.\u201d<\/p>\n According to Flowerday, the organisation is in full growth mode.<\/p>\n \u201cOur real focus is on bringing on more partners, especially within the channel and OEMs, where circularity can add value for both the businesses and their customers.<\/p>\n \u201cThe UK remains a key area of focus for us.\u201d<\/p>\n Flowerday adds that the UK is one of the main countries in its joint venture ecosystem.<\/p>\n \u201cAlthough it\u2019s a JV country and not technically a 3stepIT country, it\u2019s been operational for 26 years and plays a major role in our ecosystem,\u201d says the country manager.<\/p>\n Regionally, the company employs 25 people working purely within the joint venture structure and also counts a wider BNP leasing support network.<\/p>\n Channel focus<\/p>\n OEMs are a big focus for the circular technology services provider, as 100 per cent of its worldwide revenue is done with OEMs and manufacturer.<\/p>\n \u201cIt differs from country to country, but at a consolidated level, we basically have 50 per cent of our revenue direct and 50 per cent through partners,\u201d says Lagander.<\/p>\n Globally, the firm made \u20ac1.4bn (\u00a31.2bn) in revenue last year.<\/p>\n In the Nordics, it brought in just under \u20ac800m in revenue last year.<\/p>\n \u201cI think the channel\u2019s role will increase, and that\u2019s natural,\u201d adds the CEO.<\/p>\n Thanks to its existing reputation in the Nordics, companies often reach out to them directly.<\/p>\n But in the rest of Europe and North America, the company aims to reach customers through partners.<\/p>\n \u201cAs a result, the channel will be a priority for us going forward.\u201d<\/p>\n In the Nordics, the firm works with names such as Dustin, Advania, Telia, and Telenor.<\/p>\n \u201cDepending on the deal and customer needs, sometimes we compete, and other times we collaborate to submit tenders together,\u201d he explains.<\/p>\n The company currently has a headcount of 520 employees, only including the employees working directly with 3stepIT, not those in the joint venture.<\/p>\n Demand per country<\/p>\n Lagander adds that the demand for circularity also depends on the government of said countries.<\/p>\n \u201cSome countries and governments have taken a strong stance and published targets on circularity.<\/p>\n \u201cFrance, alongside Denmark and Finland, are leading the charge.<\/p>\n \u201cIn other countries, like Sweden, the government hasn\u2019t really pushed for circularity.<\/p>\n \u201cSome large companies, being dependent on exports and international business, recognise that doing things in a circular way helps differentiate them in the global market and makes them more attractive to customers and consumers.\u201d<\/p>\n Flowerday adds that 3stepIT provides the same services in the country it expanded in alone or through the joint venture with BNP.<\/p>\n \u201cThe key difference is that BNP Paribas wanted to partner with 3stepIT to offer these services to their customers, partners, and channel providers.<\/p>\n \u201cThere\u2019s a growing demand for circular solutions, and in those joint venture countries, we\u2019re able to leverage BNP\u2019s existing OEM and channel partner relationships, which have a long history in those markets.\u201d<\/p>\n In the new territory in which the organisation is involved, North America, Trump\u2019s tariffs and macroeconomic instability created confusion and instability<\/a><\/strong> beyond the IT channel.<\/p>\n Despite 3stepIT anticipating the re-election of Trump when it considered expanding there, Lagander admits that \u201cthere\u2019s no way to predict what will happen in the future.<\/p>\n The company\u2019s original plan was to set up a large refurbishment centre in Toronto, Canada, but the execs are leaving room for the possibility of having to revise plans with the new tariffs imposed by the Trump administration, \u201cwhich could disrupt [its] cross-border operations.\u201d<\/p>\n M&As may come<\/p>\n