Hey Channel Insiders, welcome back to Channel Insider Partner POV. I'm your host Katie Bavoso and today we're taking a closer look at a part of the channel business that many partners overlook until late in the sales cycle, financing and leasing. I'm joined by Simon Harson, Executive Vice President for North America at CHG Meridian to talk about how leasing, device lifecycle management, and the growing shift toward device as a service models can open new opportunities for partners.
We explore how tighter IT budgets, rapid technology refresh cycles, and rising data security concerns are changing the way enterprises acquire and manage devices and how partners can use financing and lifecycle services to win bigger deals, extend customer relationships, and stay competitive in 2026. Welcome Simon. Thank you so much for being here. >> Thank you, Katie. I've I'm very much looking forward to the conversation here and the the discussion to together.
So, yeah, thanks again for having me. >> As am I. Thank you so much for your time and I'd like to start up by putting you in the hot seat by just talking to us about CHG Meridian and a little bit about your company. Of course, you do quite a bit from a high level for audience. I'd like for you to explain exactly who you are, what you do because you're not a typical guest where I usually have MSPs, resellers, maybe integrators on the show, but you offer opportunities to help channel partners grow.
So, how do you explain what CHG Meridian is to someone who has never heard of you before? >> Yeah, so CHG Meridian is the largest global independent IT lessor. So, we actually work with a lot of the channel partners for their leasing needs or for the leasing needs of their clients. We work with multinational corporations around the globe. We're European headquartered company with an IT portfolio of over 10 billion US dollars. A lot of the Fortune 500 companies, Fortune 1000 companies are using IT end user devices that are being leased through us.
And a lot of these devices are coming from from channel partners. They're being provided by channel partners. There are life cycle management services included from those channel partners into our leases. That's also something that we've been implementing over the last 10 years, 10-15 years. I would say that a lot of our clients, they were not just looking for a financing or leasing solution. They were looking for a more holistic life cycle management solution.
So we've incorporated a lot of life cycle management services into our leasing to to provide a more holistic solutions for our clients. So that's what we do. There's some other business divisions for industrial assets and health care assets, but roughly 80% of our global portfolio are IT devices that we are providing for our clients. >> We spoke a little bit about this before we came on. You're in Los Angeles, but the company is also based in Europe.
Talk to me a little bit about that global footprint. Where can we find CHG-Meridian team members? >> Oh, absolutely. The global footprint is very important to us and you know, we've expanded into new markets consistently over the last couple of years. So we're now in 32 different countries. The origin of the the company is out of Germany, out of Europe. That's where our headquarters located at. But then over the last decades we've expanded into all major markets.
And all of the clients that we work with, they are operating in in different markets. So we're supporting them with the very standardized model which they appreciate into all their international markets. I started working I started out working for the for the business in 2014 out of Germany, then moved to to Mexico, spent some time with our Mexico business, roughly 5 years. Not just some time actually. A lot of time with our Mexico business. And then roughly 4-5 years ago I relocated from our Mexico business to Los Angeles.
So I'm now here in Los Angeles. That's where our US headquarters at. And that's where we tend all our clients here in the US out of our office. There's a lot of remote colleagues also on the East Coast and the Midwest that we work with globally. >> Fantastic. So, I appreciate you taking this during my lunchtime, your breakfast. So, thank you for making time for this. >> >> right. >> So, I'd like to talk more about the business opportunities that CHG Meridian presents channel providers.
Many partners still think of financing as something customers bring up maybe late in the sales cycle. From your perspective at CHG Meridian, how should channel partners rethink about leasing as a tactical financing tool or as a strategic way to open deals they otherwise might not win? >> Yeah, no. I think it's incredibly important and we work very well with a lot of the channel partners and they're very important to us because we don't provide any equipment.
We don't have people on the ground that can provide those life cycle management services. So, we we need the life cycle management services of those channel partners and we also need the equipment from those channel partners to work together to create a successful model. And then on the client side is, you know, I think there's so many benefits on putting IT equipment on a consistent life cycle management model. First of all, technology gets obsolete quickly.
Um the operational challenges of of moving equipment in and out, so that's something that we support with. The data erasure aspect of this is very, very important. There's so much sensitive data on all these IT devices that are out there. Um so, we take the equipment back and do a certified data wiping of the of the equipment as well. So, you know, I think it can really help channel partners to put these devices on a consistent refresh cycle, which also helps channel partners, right?
They're also in the business of selling selling equipment. Um so, so there are a lot of advantages, um I think, for for channel partners also to incorporate those those leasing services into into their solutions. >> Fantastic answer to kind of explain everything that you do and I'm looking forward to talking a bit more about the life cycle and the the data leakage prevention that you offer as well. I should make sure that I specify what kinds of channel partners are we talking about here?
What are the ones that you typically work with and do size and and vertical specialty play a role? >> Um they'll be any any channel partner, right? Um you know, some of those channel partner or most of the channel partners I would say are being cho- chosen by the the end user client, right? So they might have a channel partner they've been working with. So we're incorporating that channel partner in in some of our solutions. In some cases our clients are asking us for advice on you know, how to build the solutions and we are incorporating we're approaching different channel partners to build the solution.
So you know, we're working with some of the largest channel partners, but then we also working with some mid-size channel partners. We're a little bit more in the corporate space I would say. So mid- mid-size large cap um accounts. Um so that's kind of like the our market and then industries all kinds of industries. Any industry that has IT end user devices, right? But who doesn't have IT end user devices? I think especially after the pandemic every every every employee has a laptop now.
Every employee has a corporate IT end user device and that's precisely what we what we can what we can provide. >> Excellent. Well, we got to talk about the B-word, budget. It's always important every year, but many organizations they're constantly under tighter IT budgets especially in 2026. Are you seeing a shift in how enterprise customers evaluate CapEx versus OpEx for infrastructure and devices? And what does that shift mean for partners trying to close deals this year? >> Absolutely.
I mean there's always a squeeze on budget, you know, I think now there's so many extraordinary investments within the AI space space as well and budgets are getting getting squeezed. They they've always been squeezed, but it seems like they're being squeezed even more. And we can support with that. You know, this is um we work actively work with with OEMs. We work with channel partners. We work with our clients. You know, they do have a certain budget and through a life cycle management model, you know, we might be able to to get to the to to the budget number because what we do in within our model, we we assign quite a significant residual value to the devices through our refurbishment.
So, that we do have refurbishment facilities all over the globe where we take all these IT devices back, refurbish them, and place them in the aftermarket. So, there's real value being generated at the end of these, and that value can be passed on in terms of savings to our clients, which can be up to 25%. Um so, that saving of 25% really significantly helps to create the the budget needs that that some of those clients are clients are having. It's a great solution if budget is is a squeeze. >> So, let's talk more about those life cycle services as I've heard you and other team members talk about.
They can allow smaller and mid-market partners to deliver capabilities they normally couldn't offer on their own. What does that look like in practice, and how can partners position those services to compete for larger opportunities? >> Right. So, you know, we're talking about deployment services. We're talking about the logistics services. We're talking about getting IT IT end user devices into employees' hands. And then at the end of lease also the the roll back of devices and the data erasure once again, the refurbishment services.
So, all these IT life cycle management services, asset management, we also have our own asset management software that we help our clients with manage devices because in some of these corporate clients, they have thousands of devices. They're in different locations. They're even in different countries. They're in different cost centers. They're running under different budget buckets. Um so, there are all these complexities that um we try to help with um that then ultimately integrate all those life cycle management services from from channel partners. >> Going from there, you actually mentioned Simon about all of these devices spanning across different borders and even different countries and continents.
So, talk to me a little bit about how difficult it would be for a channel partner to try to tackle that sort of multi-country device management on their own compared to working with CHG Meridian. Have you seen that before where you've seen one try to do it until they come over to you or have you just Do you just know that it would be a difficult experience no matter what? >> I would say some are better than others. Like like in an industry and you know some some some have more international capabilities than others.
But what we often see though is there are certain channel partners that we work with they have a limited scope on delivering those those services. But they are still very interested, very invested in the opportunities with the end user client. So, we can help them set up a solutions for certain countries where they don't have coverage because we're quite good within our global coverage based on the global setup that we have created over the last couple of decades.
So, there might be a channel partner that we're engaging with in the US and some of the major let's say North American markets, Mexico or or Canada, but they might not have any Asian capacity or they might not have any capability within within Europe. So, we can help them with that setup. And so, they can still keep their client happy. They can build a solution together with CHG Meridian that works for the client because the client might look for for truly global solution for some of the markets that are a little bit more difficult to to attend for some for some channel partners. >> Let's talk more about that device refresh timeline because I'm sure As you know at your own company and at mine too, most organizations were refreshing devices every 3 to 5 years at least.
So, how can partners use leasing and life cycle management to turn what used to be a one-time hardware sale into a longer-term customer relationship? >> I was reading a statistic the other day which was quite interesting. There is more than 20 billion unused IT devices out there, right? So, I e-waste is a huge issue. It's it's for corporates. You know, a lot of employees have old IT devices in their drawers sitting around. They're working on old IT devices, which also has a cybersecurity risk, which has it includes downtime.
The employee productivity experience is is is just just not where it should be. So, by putting those assets, by putting those IT assets on a very consistent life cycle management model, I think it really helps to have it get to a consistent refresh model. And then it also creates opportunity for the channel partner to place equipment when the time is right. And and not place equipment when, you know, maybe the equipment is already 6-7 years old and it should have been replaced a long time ago.
So, by putting equipment on the consistent model and then I think our asset management also plays a big role there. We're trying to create full visibility on the usage of those of those assets. I mean, clients and clients can go on there look at any time when those assets are due for refresh. And just by creating that visibility, there's awareness that's being created on the client side. So, they're aware that they're using a device that should have been exchanged after 3 years and now their device is already 3 and 1/2 years old, which then they can proactively work with us, can work with the channel partners in order to refresh the device.
So, you know, overall, I think there are a lot of benefits on the client side and then also on the channel side where, you know, the channel has an opportunity to place equipment at the right time. >> Very good point. So, going back to that data leakage conversation and the risk around that, obviously, we know it's a big risk when devices are retired and you just sort of, as you said, leave them laying around. As you just stated that amazing fact, the billions of devices that are still probably in our desk drawers right now, somewhere in our house.
But when we get to the corporate level, that can't be. So, from a security standpoint, how big of a blind spot is device disposal for enterprises? And what role can CHG Meridian and the partners play in closing that gap. >> First of all, all the the device that we just talked about, right? They're laying around. They might have sensitive data on them and they're not being wiped. There's no real data erasure process that's being taken care of. That's one thing.
And then the other thing is so we use certified data erasure. You know, we work with Blanco software and there's a couple of other softwares that we use in order to to fully comply with all requirements in terms of having a certified data erasure. So there's a very very proven process that we've been using globally with our clients also on a global scale. So there might be clients that they have local data erasure in place with certain subsidiaries or in certain countries.
So just by implementing a global standard that uses the same data erasure process in every country also helps a lot. So it just gives gives clients certainty on when they need to do. You know, I think the cybersecurity risk and data leakages is a is as high of a risk as it has ever been before. So I think it's a very important topic for for everybody out there. >> Speaking more broadly about the opportunities in 2026, where do you see partners, whether they be major resellers or enterprise focused partners, most often missing opportunities when it comes to financing and life cycle services?
Where is there a space where you go, this should be so much more taken advantage of, but they're often missed in the partner world? >> Yeah, I mean I think there's a lot of excitement right now within the all the AI infrastructure space, right? And it's like we've been talking to some of the OEMs and over the the the actual chips and those data centers because there's so much investment. So every channel partner that's being part of that process or attends that market, I think has an opportunity to get some of the financing model, especially because you know, it seems like the speed the the the those chips are being reinvented every every couple of years is is is extremely high.
So, a flexible a leasing model, a financing model makes a lot of sense because that's what clients are looking for. They're trying to refresh the technology quickly. Um, so it helps them. But then also for, you know, I think any other any other IT devices, I think there are plenty of opportunities out there. Our biggest competitor is the purchase, right? Um, that's how that's how we look at it, right? clients just purchasing a lot of clients are just purchasing, then that's um, you know, I don't I don't think that's very beneficial either for the partner and not for the client.
So, I think around all IT end user devices, IT hardware devices, there's plenty of opportunity to have a flexible financing model um, wrapped uh, around the the the procurement of the device. >> Well, do you actually see that becoming more of a common practice? The device as a service becoming more common, the leasing becoming more common. Do you see it going in that direction with a pivotal turning point perhaps this year? And of course, if we are seeing that becoming more of a habit, how will that affect the role of the channel? >> Well, the the channel always has its justification, right?
Because again, you know, they have um, they they provide the devices, um, they provide the consulting, they provide the lifecycle management services. So, those channel partners, those partners are essentially important for us um, for um, for what we do. You know, overall that's not going going away. On the other side do I I do think we we live in a times of subscription models. Um, you know, maybe one day none of us is going to own a car anymore.
Um, we just subscribe to all these ride sharing services, right? Um, so it seems like ownership is becoming less and less important in the age of subscription. No one is going to going out there anymore and buying a DVD. We're all on Netflix, right? It's all on demand. It's all subscription based. And so, the concept of ownership is being re-sought, and I think that's also a a trend that we're seeing within the IT space. Clients are looking for devices as a service model.
There's a high demand for for those devices as a service model. Uh so, it's it's an opportunity, I think, for those channel partners. Um there's opportunities to upsell some of their services. Um but, on the other side, you know, they're they're very very much necessary for everything that we do and everything I think that the market over overall needs. >> Does any sort of success story come to mind for you when you consider the conversation we're having around channel partners coming to you for help with that leasing, those services, and to be able to find new opportunities?
Is there anything that you can think of that you can talk to me, whether or not you can name the partner or even the customer involved is one thing, but does something come to mind for you where you say, "This exemplifies what we do at CHG Meridian"? >> Yeah, um absolutely. I mean, first of all, we we greatly work with a lot of um a lot of partners, and we also have incentive programs in place for those channel partners. So, there's channel partners that are interested in the model based on what they've heard today, um you know, they have to reach out to us um because again, you know, we do have incentive programs in place as well there.
But, if I think about, you know, there was one very very large opportunity that we worked on um last year for large global grocery chain. I think they had an investment of roughly 50 million dollars in IT end-user devices, and the opportunity was brought to us by one of the channel partners. Um you know, the channel partners were struggling with pricing. Um they were being squeezed on pricing, and you know, through our model, we were able to get to the numbers that the client was looking to get to.
Um you know, I think channel partners also often have channel challenges around the margins, and they're getting squeezed on on on their margins. And sometimes by building a clever financial solution, a clever leasing solution, um they are able to still operate at reasonable margins, right? Um because we all need reasonable margins and have the client commit to the commit to the investment. So, that specific project was a great success story where, you know, it was the channel partner that approached us with their challenges.
We worked out a solution together and then ultimately we had a solution that made the client happy and, you know, everybody had business along the process. >> Client's happy, money's being made, success story right there. >> Exactly. Exactly. >> So, looking ahead, Simon, if you had to give one piece of advice to the channel partners who are watching this or listening to this video podcast as they head into 2026, where do you think the biggest untapped opportunity is for them when it comes to device life cycle strategy and financing?
This relates a little bit more to the question that I saw of the opportunities that they're missing, but considering some of the trends that you just spoke about this year, where do you think the biggest untapped 2026 opportunity is for them? >> You mentioned already that there's there's a there's a trend out there regarding device devices a service, you know, clients are looking for more holistic life cycle management solutions. You know, we like them to partner up with us, but just in general, you know, I think there's a lot of opportunity out there to building those life cycle management solutions to to build those devices a service solutions to build those subscriptions models.
Clients are looking for additional flexibility and there's a lot of uncertainty on where's the economy going to go, how quickly is the technology going to change, how is AI also impacting some of the technology that's being deployed today that might be obsolete in two or three years. So, clients are looking for flexibility, they're looking for new models. So, I think just in general, you know, having that openness, having the flexibility, having the creativity to entertain that specific market space can can highly benefit any any channel channel partner in in 2026. >> I appreciate you bringing up the economy.
It's fairly volatile here in the US at the moment and definitely affecting around the world. So, why would it be a great idea right now to consider services from CHG Meridian with the economy in mind? You talk about flexibility. Can you dig into that a little bit more from an economic standpoint right now? >> Yeah, absolutely. I mean, I think first of all is also preserving liquidity, right? And that's where our always our model really helps and and and kind of paying upfront cash for the technology for our clients, um they're spreading their expenses over over the actual lease term.
So, they're preserving liquidity for any unforeseen challenges. So, I think that that's that helps any business, especially in times of uncertainty. And then there's flexibility. Um it's just by, you know, by committing CAPEX budget to a certain investment, you're procuring the device, so you're committing the CAPEX spending versus uh with our model, um the the OPEX spend um is is being required and that that OPEX spend just gives you additional flexibility.
And then you can scale up or down. When the lease is through after a couple of years, you might return the equipment, you might um keep some equipment a little bit longer, you might not refresh some of the equipment um just due to the fact where your your business is at that point of time. So, just that additional flexibility can be very helpful in in times like this. >> Very well put. Well, Simon, I know that those who are listening and watching probably have a million more questions, as do I, but we only have so much time.
So, where can interested viewers and listeners go to learn more about CHG Meridian? And who do you encourage the most to reach out to you? >> Yeah, they can reach out to uh me directly on LinkedIn. Um I'm on I'm on LinkedIn, Simon Harrison CHG Meridian. Our website chgmeridian.com. They can shoot us a message and we're always happy to have a conversation and hopefully it can lead to something. >> Amazing. Well, Simon, thank you so much for your time today.
It's been a pleasure getting to talk to you and learn about CHG Meridian. Good luck in 2026 and I look forward to the next time we have you back on. >> Thank you. Thank you, Katie. Uh thanks for having me on. >> Thanks so much to Simon for joining me today and thank you as always for watching or listening. You can check out every episode of Channel Insider Partner POV on channelinsider.com or come watch us on YouTube at youtube.com/channelinsider_newsandtrends.
You can also listen to us as a podcast wherever you get your podcasts from. Don't forget to like, subscribe, and follow wherever possible so you never miss an episode. Come connect with Channel Insider or me, Katie Bavoso, on LinkedIn and X. Once again, I'm your host, Katie Bavoso, and I'll see you next time. >>
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