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Cloud services offerings expand via acquisition activity

22 September 2017 8:29 PM
159 1
Cloud services offerings expand via acquisition activity

The growing need for multicloud deployment has inspired cloud solution providers to expand their service portfolios through acquisitions and partnerships.

Recent cloud services acquisitions reveal an industry preparing to take on multicloud deployment and more complex customer requirements.

Earlier this month, Rackspace, a $2 billion cloud services company based in San Antonio, agreed to acquire Datapipe, a cloud and managed services provider in Jersey City, N.J., for an undisclosed sum, a transaction influenced by the rising demand for multicloud management. The deal, expected to close by year's end, would let the combined entity provide an array of cloud services offerings: public cloud services spanning Alibaba Cloud, Amazon Web Services, Google Cloud Platform and Microsoft Azure, as well as private clouds based on Microsoft, VMware and OpenStack technology.

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"Customers have been asking Rackspace to rapidly expand its abilities in managing multiple clouds at scale, and with the acquisition of Datapipe, Rackspace will be able to meet this growing demand," a Rackspace blog post noted.

The Rackspace-Datapipe deal is part of a broader acquisition trend, which appears set to continue among cloud specialists, IT services companies and managed service providers (MSPs).

"There has already been some consolidation in the market, with larger services companies picking up pure-plays that specialize in implementing and managing certain clouds," said Cassandra Mooshian, senior analyst with Technology Business Research Inc.'s cloud practice. "We've seen IBM, Accenture, HPE, DXC, and Wipro all make acquisitions over the past year or two of specialty firms with the certified cloud talent that is in such high demand."

HPE, for example, this month purchased Cloud Technology Partners, a Boston company that will now lead the cloud practice of HPE's IT services operation, contributing its skills as an AWS Premier, Google Premier and Azure Silver partner. And in July, DXC Technology purchased Tribridge, a Microsoft Dynamics 365 integrator, and Tribridge's Concerto Cloud Services affiliate company. Concerto cites multicloud management as one of its core cloud services offerings and also provides direct connections between the company's virtual private cloud, AWS and Azure.


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Comments - 1
John Moore

22 September 2017 8:30 PM

What steps are you taking to address the demand for multicloud deployment?