Over the years Visual Edge IT has acquired 34 companies, bringing together independent copier dealers and managed services providers into one of the largest companies of its kind.
With locations from California to Maine, Visual Edge IT continues to be one of the dominant technology providers in the market, helping customers with print management, managed IT services, VOIP phones and more.
In this episode of What’s Happenin’, Visual Edge IT Chairman and CEO Austin Vanchieri discusses:
- How big are they?
- How did Visual Edge get to where they are today?
- What technologies are they focusing on?
- What are their expansion plans?
Watch the video to learn about all this and more.
Full Transcript Below
SOURCE Industry Analysts Inc.
what’s happening Andy here I am joined
today by Austin vancieri how are you
today Austin I’m great thank you thanks
for asking it is great to see you Austin
you have a a pretty pretty simple job I
guess right you are uh chairman and CEO
of the board uh for for visual Edge I.T
formerly visual Edge technology right
correct that’s my job that’s my day job
Beach Hub well that sounds like uh you
know top five dealer I’d say
um it sounds like kind of a a busy day
I’d like to spend some time with you
today thanks for coming on the show
um maybe check in and and see uh you
know what’s going on with visual Edge I
just saw Ramos uh David Ramos over at
the executive connection Summit it was
nice to see him out and about
um so yeah it just made me think maybe
we need to get you on here and check in
and see you know what’s happened and I’d
love to you know maybe hear about your
your background a little bit and then
jump into who is visual Edge and and
where are you out of and you know give
us some of the background before we uh
talk about where you guys came from and
how you got to where you are today sure
sure so uh my background uh is in
science I’m you know I’m a physics major
got a degree in physics then I got an
MBA in night school when I was working
at Xerox
went to I I went to Xerox let’s see how
does that work I graduated on Friday and
I started working for them on Monday in
one of their factories as a young
xerographer of all things
so I did start in the business although
I never sold a copier in my life
uh I went up to the manufacturing ranks
then they pulled me over to corporate to
take a look at me
you know the way big companies do it
they take your measure then you’re lucky
enough you find a sponsor
and I did all of that for about 15 years
and I was running their Manufacturing in
the U.S
you know basically making all their
machines and
working with the union and
supervising guys through a management
chain
we made everything from this group you
know Xerox makes almost nothing now then
we made everything from the screw
machines that we made everything back in
the day yesterday to California
there was an opening there that they
sent me to
there was an interview but you know
basically I was moved to California to
work with one of their subsidiaries
and I became kind of a troubleshooter so
I became the president of that
subsidiary and then
they kept giving me
operations that were kind of troubled
could be desktop publishing it could be
oeming the Fuji Xerox desktop printers
into the US
a whole bunch of different things it was
the first word processors that they call
memory writers then
all of those things they gave me and I
built it into about a billion to
division
and then I got bored
I was actually the West Coast rep for
the Xerox Venture group so they would
send me
prospective guys to invest in all of
whom had sponsors I mean guys like Bob
Noyes were in my office with fellas that
had these reptical systems way ahead of
its time
uh so I saw that there was this Venture
community and it interested me
so after a bit I decided to leave
and go small so I ran into skipping
around a bit I ran into a guy named uh
dick kramlich
who uh was you know one of the top
Venture Capital guys very famous guy
he’s still on my board
uh matter of fact it was the last Equity
investor in the company
a few years back uh
and then we built visual Edge but in a
different way you know this term Mega
dealer
I don’t consider ourselves a mega dealer
anymore
so what we did was from the beginning
plan to do what I’m doing now it just
took me longer we just kept getting
interrupted we got interrupted in the 8
9 10 11 recession we got interrupted
with covid but we kept plugging along so
when we bought all the companies the
idea was to get enough
size 300 million or so
so that we could in fact have the
customer base that was needed to get the
interest we needed to fund what we
needed to do beyond the Acquisitions so
we bought I think 34 companies but what
most people don’t realize is
we bought three I.T companies right off
the bat
for the talent
because in the print companies we have
one print company we bought that had
very good VoIP Talent down in Texas and
they’re still our void concentration of
talent and we bought another company in
Michigan that had very good security
Talent and then we bought two other I.T
companies one of which is now our knock
Command Center in Indianapolis
and the other one that we bought is now
honchoing the East Coast I.T efforts so
we always had this idea of doing what
we’re doing now to become a national
total technology company with one brand
I’ll talk about the brand in a minute
because most people don’t know why I did
that you know it wasn’t just hanging I.T
on the end of the name which some people
think it was it was a little bit more
than that so we became a company that
was definitely going to be a managed
Services Company a managed security and
services company a total technology
company whatever the hell you want to
call us
that’s what we became visual Edge I.T
the idea of going after our existing
accounts worked I mean we now have sold
something in the relation to IIT to
about 5 000 accounts
that’s a big number
2200 of them are true managed Services
accounts with recurring Revenue
and going forward
we moved up market and started selling
to non
customers in other words new logos and
we’ve been doing that for a while
so basically we did transform ourselves
into I’ll call it a mini piece of CDW
you know CDW began did this from a VAR
standpoint right and now they’re in the
Enterprise space with what is probably
now a hundred million dollar MSP company
we’re not in the Enterprise space that
wasn’t the intention
and you know lots of folks lots of
pundits talk about
not penetrating your customer base
I never intended to have two companies
never intended to have two divisions
I was gonna butt my head against that
wall called how do you convince the
print company to become an I.T company
and I’m still budding my head against
that wall but we’re winning I’m bruised
a little but we’re winning
uh so that that is how we became
visual Edge I.T and I changed the name
not because visualized technology
doesn’t work in the space
the emphasis on the change of name was
internal
I wanted a brand for all of the other
companies who had their brands up to two
years ago to join so now on all our
buildings 75 locations
six area GMS two regions visual Edge I.T
is on the building I left that up to
them if they wanted to retain the local
brand most of them didn’t want to after
a while you know after they bought in
they didn’t want to so we are supplying
anything connected to the network
to our customers and we’ve become a
knowledge based company what we sell is
know-how that’s what the office needs
now the printer is just another device
hanging on the network I tell my people
now it pays all the bills not
misunderstanding I love the business
but as it did in print it takes time to
build up the service business you know a
dealer might take 15 20 years to build
up his service Revenue so it’s half his
Revenue
in the I.T space you don’t have the
printer Revenue you don’t have the
printer margin so you need to fund it
somehow
I I believe this is why Regional
msps
have more of a tough time they don’t
have the initial income coming in from
the sale of a printer we do
someone like CDW or others had the VAR
profit coming in to fund the MSP
business
so we’re pretty unique you know we have
access to every it product soft and hard
imaginable
and we have access to all the printers
we’ve got our service Revenue coming in
and so we could afford to become this
National technology Services Company
now I’ll take a breath well and and you
led us right up to where I’d like to be
right now which is talking about
um your coverage where you are today and
and uh who you are in the market um you
know I spent some time doing you know a
little bit of background before the
before our uh uh our show today and and
so you guys are um probably the only one
I can think of who is truly Coast to
Coast at this point where you’re
literally all the way in in California
at the in Southern California up to all
the way up to Maine the tip top of uh
the U.S
um maybe maybe I’m wrong maybe there’s
some others that are crossing uh the
country and that Coast to Coast as well
but I can’t think of them off the top of
my head so um your coverage is there it
seems unique right you no one else that
I can think of is is able to do that and
and so you offer
um consistency across the board as well
if I’m understanding this right so you
had all these different locations you
bought 30 34 locations that you bought
over the years
um they had a variety you have different
products and services and and now you
know um are they also on I.T are they
all selling VoIP are they all selling
have they all bought into all the full
portfolio or is this something that’s
being rolled out what’s the look across
the board for all these what used to be
independent companies but now they’re
all visual Edge companies
yeah so there there’s one product stack
one pricing scheme everybody uses the
same product stack
I remember your interview with Doug
at Marco where he was talking about
talking about putting companies together
right he was talking about getting
everybody on the same page and bringing
their I.T side and their print side
together
and the difficulties you run into just
in the administrative architecture of
running the business well imagine doing
that for 34 companies
that had 34 databases which now we have
down to three and the end of June will
be one
and the effect that has on people yeah
and trying to get it all together
and to be frank with you
uh we finished 19 at like 309 million
doing very well that’s where I wanted to
be
uh if we hadn’t had the slowdown in 20
and 21
I’m not too sure we would have done this
this well because that slowdown allowed
me
the play housekeeping with print
you know keeping things alive and to
really focus on the I.T talent because
that’s when we brought in about eight
medium to senior level Executives who
are pure I.T people
uh they also then besides the I.T
companies that we bought
they Infuse know-how into the company so
whether it’s uh Sacramento to San Diego
to Miami to Bangor Maine the only place
I’m not at that I wanted to be I never
found anyone
was Chicago and New York City
and I’m not too sure I regret that that
may have been a good thing when you
consider what happened to print because
most of our customers
being businesses that stayed open we did
see a decrease but we’re almost back to
normal now uh by way of Revenue but for
a different reason I mean we picked up
whatever we lost in France we picked up
in I.T
and so everybody’s selling everything we
have uh 40 Engineers supporting our
customers
we have uh 50 BTA Tech guys married
locally to my print sales people BTA
print people they work as a team and
then I have 50 local Engineers who are
supporting them in the pre-sales area
and then we have a customer success
group old classic organizations that you
would expect for a matted services or
managed security and services uh
organization so we we can do it all we
have the experts
everybody knows where the experts are so
if there is a visual Edge connect is an
intermediate product right and in 13
months we now have 178 installations
it’s like it was like a rocket ship wow
it’s VoIP but more than that it’s
collaboration but it’s easier for a
print guy to understand
you can see from a phone on a desk if
somebody needs help basically if you get
trained to do it yep so that plus uh
help from the Specialists I mean think
about print
they needed solution Specialists because
the print guy didn’t know it sooner
sooner or later he did know it he
learned it but even now if it’s a
production deal they bring in a
specialists
so now every time we’re in front of the
customer we talk I.T and we have
handouts for them
uh and so I more than half my customers
in IIT are my print customers
but it’s the variety of sizes
the account levels are different in size
so so going forward you know we’re
evolving you’re evolving this from uh
you’re basically you’re using the copier
Heritage of of the companies that that
you’ve acquired over the years most of
them
um and you’re using that to kind of fund
your future which is
this this holistic office offering of
everything right B2B level not not so
much at the Enterprise but really
um you know the small medium-sized
businesses that maybe aren’t being
supported by a CDW or someone of that
nature somebody who needs Consulting who
needs somebody to come in there and you
know help me figure out what do I need
what do I need for phones what do I need
what’s the latest for managed Services
what’s the latest thing for
um for office equipment for regular
office technology you know that that
does change and it you know becomes um
use more you know it’s been used
differently over the last few years
especially with all the remote work
going on so so moving forward you know
looking into your your crystal ball in
the next couple years uh where where do
you see obviously the evolution more
towards managed Services
um are there going to be more
Acquisitions are you going to expand
into other areas you’re not you’re not
in all 50 states no one is uh do you
know do you see yourself ever getting to
that point or is that part of the goal
yeah I think we need to continue to
digest
and learn how to service larger accounts
in addition to my own accounts as an
example
the rate the range of accounts
we have accounts that are 140 000 a
month with a couple of thousand
endpoints that we support it’s my
largest account
I have accounts that are fifteen hundred
to two thousand dollars a month and you
might say some companies say you have to
have twenty thousand dollars each it’s
got to be ten thousand dollars you have
to have a uh an assessment fee of
fifteen thousand dollars or it doesn’t
work what I’m telling you is if it’s my
account and they’ve been with me for 10
years and they’ve got 20 employees
and the service revenue from print
there’s 120 dollars a month if I can
sign them up for fifteen hundred a month
and I’m already there it’s a no-brainer
but that’s what coming together means at
the sales force and the service Force
so I think moving up Market
getting our act together over the next
12 months
having more of our business be I.T I can
attract more investment you know I’ve
been I’ve been funded by Aries Capital
Management now for five years I’m in my
sixth year they own a big piece of the
company
management owns a big piece of the
company so it’s not as though I was an
owner and I sold the whole thing 10
years ago and I’m still there right it’s
a little different so Aries has been
funding us
Aries has a big piece of the equity
piece of the company there are 350
billion dollars
uh
they’re not a bank I mean they’re
they’re a huge private Equity Firm so we
need to bring in more money but not this
year I still need to learn how to do
this better
how to grow the IET into a more
significant piece of the business
because until it is let’s say
30 of the business
to the outside world I’m still a print
company you know what I mean by that
yeah yeah yeah so we have more to prove
we’ve got the team to do it
and as I tell my people all the time I’m
in I’m all I’m all in all the time I
mean that’s what this business is all
about
exactly exactly well awesome this has
been an absolute pleasure chatting with
you uh you shared an awful lot I’m glad
we got an opportunity to to sit down and
do this we need to do this again maybe
check in in six months and see see uh
see where things are at uh are you going
to be out and about is Grandma’s gonna
be out we’re going to see some visual
Edge people in any of the shows coming
up some of the uh associations or btas
having some stuff you guys gonna be out
there or yeah Ramos or brigner will be
at the btas or
the CDA meetings they changed their name
I don’t remember what it is now but we
go we sponsor these things uh I think I
think the Julian uh ride goes right
through my operation in Tennessee you
know I can’t believe I almost I almost
didn’t even bring that up and and that’s
my crew those are my people I
unfortunately had to um miss that day I
had to go fly south and and be with a
customer for for that part of the visit
but uh yeah I got all the pictures
they’re up on our website from from when
the when they rolled in you guys uh did
some amazing things that they made some
really great donations not just to us
but to some other local charities as
well we do we participate in the Kanata
event yeah you know I think we bought a
table this year although we couldn’t use
most of it because we got snowed in and
you know the mariana rivera thing with
Atlantic we do that with them so we try
to get out and about and contribute
awesome well you guys are always just
one of the the highlights of this
industry you’re a great uh you know just
a great example of of where a company
can go with uh with a little bit of
vision so uh with that I’m gonna thank
you for your time today and any last
shout outs to anyone before we before we
let you go it was my pleasure thank you
for having us great seeing you awesome
we’ll talk soon thank you appreciate it