Summary: We caught up with TIG management in the wake of its acquisition of netConsult.
Business: TIG has transitioned from a provider of managed IT to a provider of managed cloud platforms, with a DevOps angle to help customers transform their business through automation, AI and data analytics. It is seeing strong growth around public cloud, especially its Azure business, which management describes as ‘outstanding’ and with no signs of letting up. Office 365 takeup has also been strong, as well as the managed services wrapped around. With less overhead in managing cloud platforms than managing infrastructure, EBITDA and margins are on the rise.
2019: The primary focus for 2019 is on upselling TIG and netConsult services to existing customers of both companies, each of which had around 90 customers with no overlap. netConsult brings to the table expertise in its niche customer base (alternative investment firms), plus skills around networking, cybersecurity and AWS.
M&A: Further acquisition is definitely on the cards, to deepen TIG’s multi-cloud capabilities and potentially target other niche verticals as it did with netConsult. While the Azure partnership is very strong and building, TIG already also has some AWS customers and management wants to be able to offer multi-cloud options. Ramping up its AWS capabilities is therefore high on the agenda, but management does not see the need to add any other cloud providers at present.
Global presence: TIG’s customers are UK-based companies with a focus on the financial services, legal and accountancy verticals, and some have international operations. TIG currently serves New York via partners but would like to build out its own presence. netConsult brought to the table some customers and a local partner in Luxembourg to deliver hands-on support, although most services can be delivered remotely.
Data centres: TIG operates two UK data centres, in London with Interxion and in Birmingham with Six Degrees. It plans to keep these to meet customer requirements for private and hybrid cloud offerings, however it doesn’t see any need to open any data centres outside the UK due to the scale, flexibility and cost benefits offered by public cloud.
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